Loan or Capital Lease

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621 Energy offers a Capital Lease at competitive terms through our financing partners. The entire system cost or a portion may be financed via a 7-year Capital Lease secured only by a UCC Filing on the equipment. There is a $1.00 buyout at the end of the lease term. 

This is considered a conditional sales lease, where the customer or Lessee is considered to have legal title of the property from day one. As a result, the Lessee is allowed to:

  • Depreciate the full value of the property for tax purposes

  • Utilize the Federal Investment Tax Credit

  • Deduct the interest portion of lease payments from taxes

This capital lease offers the benefits of a competitive bank loan, but with minimal fees, simplified applications, quick turn-around on applications and security provided only by the solar equipment.

Similarly, 621 Energy has financing partners willing to provide fixed rate term loans to finance a system purchase with minimal closing costs. The decision between these options is generally based on the loan interest rate, embedded capital lease interest rate, and security requirements.