The Pros and Cons of Commercial Solar Lease Programs
The Pros and Cons of Commercial Solar Lease Programs
At New York Power Solutions, nothing matters more to us than delivering efficient and affordable solar to homes and businesses. Commercial solar lease programs, which are also known as commercial solar lease financing, have become more popular in recent years. These programs are marketed as being an affordable and stress-free way to transition to solar, particularly for companies that lack capital for an immediate solar investment.
Commercial solar lease programs do carry some benefits but there are also downsides to consider. You won’t own your system under commercial solar lease programs and the long-term savings are diminished.
Let’s explore the pros and cons of commercial solar lease programs to help you decide which is right for your unique needs.
The Pros of Commercial Solar Lease Programs
Commercial solar lease programs do have benefits. These need to be carefully weighed to determine whether they offset the downsides within your unique business environment.
- Commercial solar installation costs are a concern for every business. Commercial solar lease programs eliminate these costs. Your business could join one of the many New York commercial solar lease programs with very few or even no upfront costs.
- The ongoing cost of leasing is less expensive than purchasing electricity from the grid. This makes day-to-day operations more efficient and more affordable. Spending less on electricity through commercial solar lease programs allows you to make better use of your finances to run and grow your company.
- You won’t be responsible for maintenance or repairs with a commercial solar lease, so it’s one less business expense to worry about. Problems are referred directly to the leasing company.
At face value, all of these benefits are compelling, but it’s important to note that there are similar benefits that can be enjoyed when purchasing a system (either outright or with finance).
The Cons of Commercial Solar Lease Financing
With the key benefits explained. Let’s consider the downsides. The cons of commercial solar lease financing can put any potential contract into perspective. Note that commercial solar lease financing isn’t the same as financing a system that your company will own. It is another term used to describe solar leasing.
- Savings with commercial solar lease financing in New York are lower when compared to owning a system. While more affordable than the grid, you still won’t get the maximum possible savings that commercial solar can provide.
- With a leased system you won’t enjoy the benefit of selling excess capacity back to the grid. The leasing company will profit from this excess.
- Commercial solar lease financing contracts can be expensive if you need to change your business location. Breaking a contract early could come with a significant penalty.
With these cons of commercial solar lease financing in mind, things aren’t as straightforward as “leasing is more affordable”. The reality is that leasing is only more affordable than taking electricity from the grid.
In the long-term, owning a solar system is more economical, even when factoring in the commercial solar installation costs.
Owning and Installing Commercial Solar Brings the Best Benefits
Now let’s consider the alternative to commercial solar leasing. Instead of signing up for a contract with a company that will own and operate your panels, you could have New York Power Solutions install panels that are 100% yours.
- We can offer commercial financing through our partners. Financing a system still works out cheaper than buying electricity from the grid.
- Your business may be eligible for tax incentives or other government-backed programs depending on its size, location, and the size of the planned solar system.
- We assist with financing and tax benefits. We provide a complete energy evaluation and cost/benefit analysis. You’ll know with confidence how much solar will cost and how much it will return over time. You’ll be able to make an informed decision within the context of your business and its long-term future.
- We provide a comprehensive 25-Year Warranty for solar installations covering service and parts. Upkeep is minimal outside of regular cleaning and inspection.
- Excess you generate can be sold back to your electric utility company.
- We will customize the solar solution to suit your business. Unlike commercial solar lease programs, you will have more freedom to choose a complete package that suits your needs today, while anticipating future growth. We can install panels, battery backup, and integrate with existing generator solutions for emergency power redundancy.
While you will save money with a leased system, you will never truly profit from it. Owning your solar means that once the system is paid off, all the real savings (and any funds generated from excess generation) go back into your business.
New York Power Solutions Makes Commercial Solar Installation Costs Manageable
Owning your solar system simply makes more sense. If you have a long-term lease or own your commercial property, you’ll always get better value when you finance or buy solar equipment outright.
We keep commercial solar installation costs manageable. We do this by expertly planning and designing solar systems so that they are efficient for your property and your business type. We don’t add components that you don’t need, which keeps commercial solar installation costs down.
Our panels, microinverters, battery backup systems, and all other components are incredibly reliable, so the cost of maintenance is low. Panels require cleaning every six months in most cases. This is typically the only maintenance work that you will need to cover out of pocket.
We offer flexible financing. If you want to keep commercial solar installation costs as low as possible, you can extend the term for smaller repayments. Or you can make larger payments over a shorter term. Keep in mind that once the finance is paid off, every cent saved is yours to enjoy. Your business can effectively generate free electricity at that point.
Any way you look at it, the initial commercial solar installation costs are insignificant compared to the savings over time. Solar generates a return. It’s not an expense. It’s an investment, as long as you aren’t leasing.
To learn how we can make commercial solar installation costs manageable for your organization, talk to an expert solar consultant today. We are your long-term partner for efficient, reliable, and affordable solar that will continue to pay dividends.