Leasing is an effective way of paying for your solar system without upfront capital investment (or with a lower capital investment*) and without taking on the full responsibilities of ownership.
There are two kinds of lease options available for the PV Solar system:
- Operating Lease (like renting equipment)
- Capital Lease (like having a business loan)
In the ‘operating lease’ mode, you make monthly payments (just like for any other equipment lease) for the usage of the PV system and you are not responsible for the ownership of that system. The PV system is owned by the financing company and you monthly pay the rent of using the equipment – just like paying for hiring any equipment, with an option to purchase at the end of the lease period for its then current market value. This can be a smart way of owning the system with a low upfront capital outlay. The operational and maintenance activities are managed by the investor.
In the ‘capital lease’ mode, just like the business loan, wherein you could be responsible for the ‘operational’ and ‘maintenance’ of your PV system, as it directly allows you to take advantage of ‘tax credits’ and significant government subsidies (such as Feed-in-Tariff and Export Tariff), so might be worth taking the extra commitment.
The below table summarises the two lease options:
Ablaze Green Energy Solutions partners with some of the best energy efficiency asset investors in the UK, who can access your business situation and eligibility to advise you on the best way to pay for your solar system. Moreover, the underwriters of the lease have significant experience in the renewable energy sector.
Their ‘lease option’ can provide you with the flexibility of benefiting from the solar technology with an option to own the system at the end of the leasing terms (generally 8 to 10 years, sometimes 15 years) at a reduced cost, or renew the lease for the next term, or have the system removed!
In summary, the combination of the ‘little’ or ‘no upfront’ cost, known as lease payments and access to ‘lower’ energy bills, can lead to an immediate reduction in the energy costs and significant savings over the duration of the lease and beyond. This is an option that is definitely worth considering.
To get impartial advice on the best PV system financial solutions for your business, or to arrange a site survey – please call our customer service team on ‘0333 220 5498‘ or email us your requirements at ‘email@example.com‘ and one of our expert team members will contact you shortly to discuss your requirements.