Georgia Solar Leasing


Solar Leasing Is Now A Possible Solution

Now that the Georgia Power Advance Solar Initiative passed the Public Service Commission on November 20th 2012 (by a 5 to 0 vote) solar leasing could be a viable option for installing solar pv in the state.

Prior to this passage leasing was not viewed as an alternative. This was due to the possible conflicts with the Territorial Electric Service Act of 1973. That act laid out the guidelines as to who was able to provide electric utility services within a specific area. In a nutshell, if you where within the Georgia Power service area then only GPC could sell you power.

There were some additional rules that allowed for some competition. As an example if you had a demand of 900kV and moving into an area serviced by 2 utilities you could chose between the two, but once chosen that utilities owned your business.

Most states outside the south allow for Power Purchase Agreements (PPAs). In the south these PPAs have not been available. This new act gives Georgia Solar Installers the opportunity to install solar arrays on commercial and residential buildings using solar leasing. Not quite a  PPA but close enough.

With this type of lease the solar company will install the solar array for free. The solar company will own the solar array and will charge the building owner a monthly fee that will be less than they would normally pay for electricity. Depending on the type of lease (capital vs. operational) over time it will be paid off and at that time the building owner can either: re-lease the array, buy it at fair market value (FMV), or have it dismantled.

Leasing is a way for business owner to conserve their capital while still receiving the sustainable, environmental benefits of using clean solar energy.

Contact a solar installer today to check into solar leasing!

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Solar  Lease

Commercial, Residential solar leasing Advantages:

- Receive sustainable, renewable solar energy for the length of the lease typically 10 to 20 years.

- Low monthly, stable, electricity costs.

- You will not have to worry about the Georgia State Tax Credit being available when you do the installation. That will be the installation company's issue.

 - No money down, no capital outlay.

- For businesses the project moves from capital budget to operating budget.

 - Immediate ROI.

- Energy credit may stay with your business.

Commercial, Residential solar leasing  Disadvantages:

- Depending on the type of lease The Federal tax credit falls to the leasing company.

- Depending on the type of lease The Federal depreciation falls to the leasing company.

- For both businesses and residential homes the solar array will probably need to be purchased at Fair Market Value at end of lease or dismantled.

 - For commercial businesses an O&M agreement typically is needed with lease.