Many companies are now exploring the installation of solar power systems using lease finance. Lease finance has been around for some time – whether leasing vehicles or large equipment. It means there is no upfront capital cost and can offer tax advantages in certain circumstances.

Broadly categorised as ‘Asset Finance’, solar leases are typically one of two types:

Operating Lease

Under an operating lease, often called a ‘rental’, the equipment is owned by the financier and the lessee pays an ongoing monthly charge. Operating leases are typically cheaper, however the term may be indefinite as they are typically used where the equipment is eventually returned to the financier.

Finance Lease

Under a finance lease the equipment is owned by the lessee and the term is fixed at the start. There is often a residual payment at the end of the term (sometimes called a balloon) which is payable in order to formally transfer ownership.

Selecting the right lease for your needs is an important decision which will depend on your specific arrangements. Demand Manager works with a panel of financiers with varying products so we can help select the best product for your needs.

Contact Demand Manager for more information.