Solar energy continues to grow, and an increasing number of people are benefiting from installing solar panels in their homes. Its potential and advantages, along with the way we can finance a photovoltaic installation, are key to its expansion.
One of them is renting.
What is solar panel leasing? How does it work?
What is renting?
Renting is a rental agreement where the lessee pays a fee to the lessor for the use of a movable asset. Its contractual nature distinguishes it from other similar forms of contract, such as leasing.
- These are typically long-term rentals, where the tenant can be either a company or an individual. The landlord, on the other hand, can be a financial institution or company, but never an individual.
- With leasing, there is an option to purchase the movable property after the end of the contract term.
What are the advantages of renting?
Renting allows people to have a self-consumption installation without making a significant initial investment, paying for photovoltaic materials through a monthly fee.
Solar panel leasing contracts often include additional services, such as maintenance, repairs, or insurance. Plus, you can benefit from their potential from day one, without being subject to an additional initial payment.
You’ll be eligible for a 20-year lease for solar panel installation, which saves on electricity consumption and allows you to sell the surplus generated to the power company, if connected to the grid, further reducing your electricity costs—y bill.
On an economic and financial level, the leasing transaction is excluded from Cirbe and the company’s balance sheet, representing a very positive transaction for the company. Since it’s not considered an immediate cash flow and isn’t counted as equity, you can continue to maintain other financing lines you already have active with your bank.
How solar panel leasing works
Switching from a traditional electrical installation to a solar one using photovoltaic panels often requires a significant initial investment.
This investment usually pays off sooner or later:
- A solar panel installation can last more than 20 years
- Consumption is reduced by up to 70%
However, not everyone has the initial funds to install solar panels in their homes. That’s why there are various types of financing and subsidies.
With leasing financing, we lease the photovoltaic panels along with the rest of the equipment needed for their operation. The contract establishes the amount to be paid and the length of the lease term.
If you qualify for a subsidy, you should know that you can also do so through leasing. You can even reduce your property tax (IBI) during the first few years.
At MASRED Engineering, you can learn about solar panel leasing without obligation, how it works in the industry, and what benefits it can bring to you, whether you’re a business or an individual.
We are experts in solar energy.
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