Marks & Weinberg is a law firm that focuses exclusively on equipment leasing and finance. The lawyers of our firm have significant experience in dealing with virtually every type of equipment and facility financing, have participated in equipment financings worth over a billion dollars, and are recognized throughout the industry.

The true costs of solar leasing

The successful deployment of renewable energy, including solar, is critical for America’s future energy supply. Recently, a lease financing mechanism has been one of the most powerful drivers of solar power deployment in the US. Though solar leases have helped grow the industry, the authors contend that they come at an inflated and higher than intended cost to the US taxpayer compared to cash purchases. Further, if these inflated taxpayer costs become politicized, the industry may suffer another setback.

A press release issued by a major leasing company in October 2011 indicated leased systems have surpassed cash purchases in California, as supported by data from the California Solar Initiative (CSI). In 2008 leased residential PV systems represented ~6% of the number of installations in the market tracked by the CSI. As of April 2012 that number is now ~60% and growing. Like many other financial products that proliferate without being matched by a change in an underlying hard asset, the solar lease warrants further scrutiny.

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