Sample Solar Finance 10 Year Lease (New Jersey)

In this example, a farmer signs a 10 yr lease for a solar PV system of
250,000 watts

The system annually produces a 10 year average of
334,335 kWh

The gross cost prior to deductions of power under this lease is
estimated at $0.158 / kWh

SREC Income
For the benefit of lessee

Net lease cost per year = $11,392
$54,020 - $42,628

Net cost / kWh = $0.031
($0.158 - $0.127)

At the end of the 10 year lease

Return the system to the lessor
Extend the lease
Exercise the lease purchase option

The Purchase Option price is 20% of the turnkey system price

Finally Financing That Works!

Please contact Steve Masapollo to get started or with any questions at 1-866 456 SOLAR (7652).

  • Based upon the projects EPC quote, the turnkey system price is $687,500
  • The (lessor) uses the credits for ITC and Depreciation to lower lessee payment
  • The turnkey price minus the credits equal the leases present system value
  • The lease 10 year residual value is 20% of the turnkey price - $137,500
  • The quoted annual lease payments are $54,020.
  • The O&M will be covered by Solar Developer and EPC for first 10 years. Lessee / Farmer will keep PV system unobstructed.
  • Bank will insure PV system
  • Total annual lease cost for this farmer is $54,020
    • The system is estimated to create an average of 334.335 SRECs per year
    • Prices currently are $170 / SREC spot and $127.50 / SREC strip
    • SREC strip rate annual income - $42,628
    • SREC per kWh - $0.127