• Benefits of a Tax also known as a True Lease

• The Lender owns the system and receives the tax benefits The Customer enjoys greatly reduced monthly payments as a result, often at or below the cost savings of the system, so customer has net savings with solar.  Term is up to 10 years; customer buys system at end for the greater of a stated percentage of original cost, usually 10% to 15% to 20%. For tax purposes, the customer can write off the solar lease payments and reduce taxes. Accounting-wise, the true lease may qualify as an "off-Balance Sheet" financing transaction.

Benefits of a Tax/True Lease cont.

•  If a solar lease is a Tax Lease/True Lease, the lender retains ownership and the lessee, may be allowed to claim the entire amount of the monthly investment as a tax deduction.
• The Tax/True Lease works best for most "for-profit" enterprises because many businesses, even though profitable, can't make full use of the tax benefits! With the Tax/True Lease, they can still get the benefit in directly, through lower payments. Also, the Tax/True Lease can be used for those customers who can use the tax benefits, but may prefer the True Lease because it's simpler to predict resulting cash flow and savings