Equipment Lease Financing
Under an equipment lease, a lessor will own the energy efficiency equipment in a building, and the lessee (typically the owner or tenant) will make periodic payments and benefits from using energy efficient equipment.
Many equipment leases will include clauses allowing the lessee to acquire the equipment at the end of the lease term. Energy equipment manufacturers may provide lease financing. Likewise, equipment lease companies may have relationships with contractors and/ or equipment manufacturers. These equipment lease companies will agree to purchase and lease equipment for projects matching certain conditions – such as the credit of the lessee, the technology being implemented, or other methods.
Equipment leases can be structured to be considered “off-balance sheet” for property owners and tenants who do not want to assume further debt.