Lease Solar and Storage With No Money Down
Start saving money right away, with just your signature! While lease terms are generally less attractive than today’s purchase options, 180 Solar Power has numerous lease financing options that allow you to install a solar & storage system with little or no money down, and an affordable monthly payment. What are you waiting for? Click here now for a free consultation, and to learn more about your options.
Solar Lease Options
Leases are a vehicle that can cover 100% of the cost of a solar & storage system with no money down. Most leases have a term of 20 to 25 years; however, the property owner does not own the solar & storage system, the leasing company (lessor) owns it. The lessor then sells the power that the system generates, to the property owner, in the form of a lease payment. Because the lessor is the owner of the system, they receive all of the government incentives, and as a result, most lease payments are based on the “net” cost of the solar & storage system to the lessor; the cost of the system after all government incentives are deducted from the cost of the system. Therefore, a lease may be preferable to some property owners who are unable to utilize the 26% Federal Tax Credit. For those property owners there are two primary types of solar leases: monthly and prepaid.
1) Monthly Leases
typically give the property owner the option of choosing a fixed monthly payment, known as a “Zero Escalator”, or choosing a lease payment that will increase at a predetermined percentage every year, which is known as an “Escalator”. Most Escalators increase anywhere from 2-3% per year, with the escalation percentage pre-determined and fixed prior to the commencement of the lease. Escalator leases typically start out with a significantly lower monthly payment than a Zero Out lease, thereby making them more attractive to property owners who are payment sensitive, or who are planning to sell the property within 5 to 10 years of installing their system. Zero Out leases typically have a higher initial payment, but the payment is fixed for the entire term of the lease, and the total of the payments is usually lower than the total payments of an Escalator lease, thereby making them more attractive to property owners who plans to stay in the property long term.
2) Prepaid Leases
are just that. Instead of making monthly lease payments for the entire term of the lease, the property owner makes one large lump sum payment at the start of the lease, which pays for the entire lease, and they never make another payment for the rest of the lease period. That lump sum payment is typically based on the lessor’s net cost of the system, which is then adjusted to reflect the discount value of money over time. This is a great option for the property owner who has a large sum of cash available to them, as this will usually give them the lowest total cost of any of the lease options.
180 Solar Power is a local family owned company that services residential, commercial, non-profit and government customers throughout southern California. 180 Solar Power is a licensed C-10 electrical and C-46 solar contractor.......Learn More