Lease

Leasing is an arrangement where a solar developer or a third-party company owns and installs the solar energy system on a customer's property. The customer, referred to as the lessee, pays a fixed monthly or annual fee to use the solar system and consume the electricity generated by it.

Solar power plant leasing is a model where a customer leases a rooftop solar system from a financing partner for a fixed period of time. The customer pays a down payment, typically 5–20%, and an agreed-upon lease rental. The lease term can be up to 12-15 years.

Here are some benefits of leasing a solar power plant:

• • Lower upfront costs : Customers can avoid the large upfront costs of purchasing a solar energy system.
• • Maintenance and monitoring : The solar provider may be responsible for maintaining and monitoring the system, which can reduce the lessee's burden.
• • To be lighter on Capex and Balance Sheets. : This model helps to avoid capex investment and lighter on balance sheet.
• • Immediate savings : Lessees pay for the energy produced, not the equipment itself, so they can start saving on their electricity bills right away.

However, leasing may not provide as much long-term savings as PLL or a solar loan because the lock-in period is longer under Solar plant leasing.