Solar Leasing & Financing: Options for Commercial Property Owners

For commercial and industrial property owners in New Zealand, investing in solar energy is becoming increasingly attractive, not only for its environmental benefits but also for its potential to reduce operational costs and enhance property value. However, the upfront cost can be a barrier for many businesses. Fortunately, flexible solar leasing and financing options are available to make installing renewable energy systems more accessible in 2025.

Understanding Commercial and Industrial Solar Leasing

Solar leasing enables commercial property owners to install solar panels with minimal to no upfront capital investment. Instead of purchasing the system outright, the owner pays a fixed monthly fee to use the solar equipment. This approach offers immediate energy savings and predictable costs, making renewable energy adoption more accessible for businesses focused on managing their cash flow.

Power Purchase Agreements (PPAs) - A Popular Alternative

A PPA is a long-term contract in which the property owner agrees to purchase the electricity generated by a solar system from a third party at an agreed-upon discounted rate. The solar provider installs, owns, and maintains the system, removing the financial burden of ownership from the building owner. This model offers predictable energy pricing and provides renewable energy without an upfront investment.

Difference Between Solar Leasing and Power Purchase Agreements (PPAs)

• Solar Leasing: The commercial property owner leases the solar equipment from the provider and pays a fixed monthly fee. The lessee enjoys immediate access to solar power without owning the system, while the leasing company retains ownership and is typically responsible for maintenance.
• PPAs: In this scenario, the system is installed and owned by the provider, but the property owner purchases the electricity generated at a contracted rate, typically lower than the grid prices. The property owner pays only for the power used, shifting all operational and maintenance responsibilities to the provider.

Both models eliminate upfront capital costs and provide predictable energy payments, but differ in ownership, payment structure, and risk allocation. The choice depends on business preferences around asset ownership, cash flow, and budget flexibility.

Traditional Financing and Green Energy Loans

Commercial solar loans are increasingly available from major New Zealand banks, offering targeted financing options tailored for businesses and agricultural customers looking to invest in renewable energy. These loans offer attractive terms, including low or zero interest rates for an initial period, which help reduce upfront costs and make installing renewable energy systems more affordable.

Notable commercial solar loans include:

• ASB Smart Solar Loan: Up to $150,000 interest-free for 5 years, designed specifically for farms and rural businesses, including commercial solar and battery installations.
• BNZ Green Business Loan: Provides loans up to $80,000 at 1% interest over 3 years, specifically for business green initiatives such as solar power systems.
• Westpac Greater Choices Loan: Up to $50,000 interest-free for 5 years, applicable for commercial solar and battery installs.
• ANZ Business Green Loan: Up to $80,000 at 1% interest over 3 years for agri-business and commercial customers for energy upgrades.
• Kiwibank Sustainable Energy Loan: Offers smaller loans (typically up to $2,000 contribution) for renewable energy projects, best suited for smaller commercial or farming investments.

These options can be combined with the new 20% Investment Boost tax deduction, allowing businesses to immediately deduct 20% of eligible commercial solar system costs in the same financial year, further improving economic viability.*

Benefits of Installing Renewable Energy Systems for Commercial Properties

Installing solar power systems helps commercial property owners reduce electricity bills, increase asset value, and demonstrate sustainability commitments to tenants and stakeholders. Hybrid solar systems also provide backup power, enhancing operational reliability. With New Zealand’s favourable solar conditions, investing in solar technology not only reduces environmental impact but also provides long-term financial benefits.

Is Solar Leasing Right for Your Commercial Property?

Choosing the best financing option depends on your property ownership status, budget, and long-term energy goals. For tenants, PPAs or shared solar models may be ideal. For landlords, leasing and solar-inclusive rents can increase rental appeal and returns. AA Solar’s experienced team offers free feasibility assessments and customised solutions to help you find the best path to sustainable commercial solar energy in 2025.

*The information provided on this website is for general information purposes only and should not be considered financial or tax advice. AA Solar recommends that you consult with your accountant or tax advisor to independently assess how these incentives apply to your specific business circumstances.

Frequently Asked Questions?

What solar leasing options are available for commercial and industrial solar in New Zealand?

Solar leasing allows businesses to access solar power without upfront capital costs by paying a fixed monthly fee for the use of the solar equipment. This reduces the initial solar panel NZ and transfers maintenance responsibilities to the leasing company, offering predictable cash flow and immediate savings.

How do Power Purchase Agreements (PPAs) differ from solar leasing?

Under a PPA, the property owner buys the electricity generated by the solar system at an agreed discounted rate without owning the system. In solar leasing, the owner pays a fixed fee to use the equipment. Both options eliminate upfront costs but differ in their payment structures and ownership.

Can I get commercial solar loans to reduce the upfront cost of solar panels in NZ?

Yes, several New Zealand banks offer commercial solar loans with favourable interest rates and terms designed to finance renewable energy system installation, helping businesses spread costs while benefiting from ownership incentives and tax deductions.

Is owning the solar system better than leasing or PPA?

Owning your solar system via traditional financing or purchase maximises long-term savings, tax benefits, and asset value. However, leasing and PPAs offer lower upfront costs and predictable expenses, which can be preferred if capital is limited.

How do I determine the right financing or leasing option for my commercial property?

The choice depends on your business's financial goals, cash flow preferences, ownership desires, and risk tolerance. Consulting with solar experts like AA Solar helps match the best commercial financing or leasing model for your unique needs. Contact us today.