For forward-thinking business owners, rooftop solar isn't just an environmental statement, it's a strategic financial investment with the potential to offset operational costs and enhance corporate public relations efforts. Getting into commercial solar leasing is easier than you think! By understanding the basics of contracts and financial benefits, you can unlock great opportunities and make more money. It’s a chance to go solar and make a positive impact on your community and your wallet! This quick guide will provide business owners with a comprehensive toolkit of important questions. Armed with this knowledge, you'll ensure each conversation with your solar vendor is productive and beneficial, reducing the time it takes to implement your new revenue-producing solar system.
How old is your roof?
You should assess the available life of your existing roof, which needs to last the term of the lease agreement. Your roof should have at least 15-20 years of life left before installing solar panels.
What is the roof material?
Solar panels can be installed on most common roofing materials, including asphalt shingles, metal, concrete, and rubber. The roof must support the solar panels without compromising its integrity. Some materials may have weight limitations, while others are better suited for heavy installations.
How will the solar installation affect my roof? Can my roof support a solar energy system?
A professional solar assessment should include a roof evaluation to determine if your roof can support the system. The installation process may vary depending on your roof type, impacting costs. We’ve written more on determining whether your roof is structurally sound or if solar panels will damage your roof here on the blog.
What are the financial terms? What is the lease duration?
Solar leases typically run for 15-25 years, sometimes with an extension option. Payments are likely to be fixed monthly throughout the lease term. Depending on your state, Catalyst Power offers 20- or 25-year lease terms with fixed monthly payments.
What are the installation and maintenance responsibilities?
For an average rooftop lease, the solar company usually handles installation and maintenance, while you're responsible for property access and panel protection. Catalyst Power will own, operate, and maintain the solar array for you, at no cost. So, all installation and maintenance responsibilities fall on us.
What are the end-of-lease options?
Lease agreements will vary, but options to extend the lease under negotiated terms or buy out the solar system are typical.
Is insurance coverage required?
Ask about your insurance obligations for the solar system, as this may affect your overall costs.
How will the system's performance be guaranteed?
Inquire about performance guarantees and what happens if the system underperforms. Some leases include assurance clauses. At Catalyst Power, we don’t get paid if the system isn’t working, so we’ll keep it running!
What happens if I sell my property?
Some companies allow lease transfer to a new owner, while others may consider it an early termination. When you sell or transfer ownership of a commercial building as part of your lease agreement with Catalyst Power, the rooftop lease can be negotiated as part of the transaction. We’ve written more on this in our “What Happens to My Rooftop Lease When I Change Locations?” blog post.
Now that you’re equipped with the knowledge to confidently approach solar energy providers, consider scoring a free rooftop solar assessment with Catalyst Power! Contact our Energy Experts today for more information.
