What is leasing?
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.
The lessee is the receiver of the services under the lease contract while the lessor is the owner of the assets.
Solar leasing is simply our solution for clients to unlock the benefits of going for solar to gain access to competitive electricity rates via solar energy.
PV World installs, maintain and invests in the solar PV system on the client’s roof at minimal cost to the clients.
Electricity produced by the solar PV system is then purchased by the client over the lease period of 20-25 years.
For businesses, Solar leasing has many significant financial benefits over purchasing the Solar PV system:
- Solar Leasing is less capital-intensive than purchasing, so if a client has constraints on its capital, it can grow more rapidly by going for solar leasing.
- Solar Leasing payments are considered expenses rather than assets, which can be set off against revenue when calculating taxable profit at the end of the relevant tax accounting period.
- PV World’s expert personnel monitors and maintains the solar PV system for the client over the entire lease period.