Articles > The Top Ten Considerations to Lease Ones Solar Electrical Generating System

When adding a solar generating system, businesses are representing a strong understanding of sustainability practices and a strong engagement with an individual's nearby community, adding distinction to your brand and therefore creating / developing a upbeat work environment which staff together with your buyer's value. Additionally currently, small businesses acquire the various added advantages of free interconnection and Net Energy Metering (NEM). Large numbers of California firms have chosen to "Go Solar" merely because photo voltaic energy is always trusted and can stabilize rates on once a month expenses by means of producing electrical power requirements whenever power charges could very well be at their most expensive.

Net Energy Metering: NEM is a fantastic billing concept that lets your firm to generate credit with regard to the total retail rate associated with the energy its system produces and exports to the electricity grid. The special net energy meter maintains track of the actual electricity your commercial yields as well as consumes. Over a 12-month period of time, your business will pay for the actual net amount of power that is actually supplied to it by the utility, minus all generation export credit that has been accrued- saving your business money.

100% Loan
Absolutely no out-of-pocket cost to you. Absolutely no down payments. No deposits. Zero initial cash outlay.

Optimal Use involved with Solar Tax Advantages
Federal government solar tax credit and also accelerated depreciation reduce the entire lease payment.

Renewable Energy Credits and Carbon Credits
Every applicable and available credits benefit the client's account.

Fixed costs on your Lease Period
Fixed per month lease payments represent a vital hedge against increasing utility costs.

Expensed Lease Payments
The vast majority of leases are usually considered "true leases" with respect to tax reasons, using the lease payments handled as an operating cost.

"Operating Lease" Accounting Treatment Solutions

A good number of leases cover FASB criteria for off balance sheet,
"operating lease" accounting treatment.

Maintain Credit Lines

Leasing delivers an alternative source of financial resources. Bank lines
stay intact for all the other uses.

Fixed Purchase Option

Format your lease to provide a fixed- not fair market value- purchase option
at the end of the lease time period.

Renewal Options
Desirable renewal alternatives are offered together with each and every

Solar creates tremendous savings over having to pay higher than average
utility rates both right now and over the long term- analyze our lease cash
flow comparisons.

Step-by-step Flow

  • Fiscal cash flow comparison of the lease payments vs. electricity charges
  • Lease proposal authorized and processed for funding acceptance, combined with the business's financial statements
  • Commitment letter granted
  • All lease documentation prepared for execution
  • Work commences
  • Final acceptance of the finished and hooked up solar system, commencing the lease.