Solar Project Financing With An Operating Lease
SOLAR PROJECT FINANCING WITH AN OPERATING LEASE
An Operating Lease may be the ideal financing structure for for-profit companies that don’t have an appetite for the Federal ITC or MACRS (tax credits or depreciation). The tax benefits of the Operating Lease are utilized by the lessor and that value is passed back to the lessee in the form of lower lease payments. Unlike a Capital Lease with a fixed purchase price at the end of the lease term, an Operating Lease requires a residual balance of “fair market value” at the end of lease term that typically ranges between 15-30% of the project total cost.
FEATURES OF SOLAR OPERATING LEASES:
~ Lease payments are lower than a capital lease
~ The effective interest rate is actually a negative percentage
~ Operating Leases are “off balance sheet” transactions for the Lessee
TERMS & CONDITIONS:
~ Company Credit: A+ to B credit types and financially strong companies.
~ Company Types: For Profit and Non-Profit
~ Ownership Type: Owner occupied or Tenant occupied financing available
~ Project Type: Commercial and industrial solar projects using Tier 1 Equipment
SOLAR PROJECT – OPERATING LEASE FINANCING:
~ 10 – year total term (Consisting of 7-year Lease with an additional 3-year Term Loan)
~ Own the system at the end of the 7 or 10 – year term
~ Please Contact Us for Minimum System Size
~ Can be roof mount, ground mount or carport install
