Just like any other kind of equipment lease, a solar lease involves paying a monthly fee for the use of equipment a bank or leasing company owns. The lease is structured so that the borrower makes monthly payments to the lender, which covers the cost of the solar panels and their installation. The lease term is typically 15-20 years, after which the borrower can purchase the solar panels or have them removed.

The solar panels are owned and operated by the solar company, so you don’t have to worry about maintenance or repair costs. Commercial solar operating leases often include a performance guarantee so you will get maximum, consistent power from your solar system. Leasing the solar system is an effective way to access the benefits of solar without an upfront cash investment and without taking on the obligations of full ownership with renewal and purchase options.