Overview

As interest in solar power grows, business owners face an important decision: Should they lease or buy their commercial solar panels? In this blog, Ready Solar Inc breaks down both options to help you understand the long-term financial impact, potential savings, installation considerations, and eligibility for government incentives.

Highlights

Introduction

More businesses in British Columbia are exploring solar energy as a way to cut costs, improve energy independence, and meet environmental goals. The benefits of going solar are clear, but the path forward can be less obvious. Choosing between leasing and buying your solar panels is a decision that can affect your finances and how much control you have over your own energy system.

In this blog, Ready Solar Inc outlines the key differences between leasing and buying to help you make a well-informed choice that suits your business and your budget.

Why Solar Panels Are a Smart Move for Businesses in British Columbia

British Columbia enjoys a unique position when it comes to renewable energy adoption. While the province already generates a significant portion of its electricity from hydroelectric power, the shift to decentralized solar energy brings several advantages for commercial entities.

Say Goodbye to High Utility Bills

Solar panels drastically reduce or eliminate electricity bills. Commercial properties often consume large amounts of energy during peak business hours. Installing solar panels enables businesses to offset these costs by producing their own power, especially during daytime operations.

Gain Energy Independence and Reliability

Solar systems, especially when paired with a battery, will continue to power your business when there’s a power outage. This allows you to continue operations and reduces the risk of damaging equipment or losing data when the power goes out.

Improve Your Property Value

Solar panels are an attractive feature for potential buyers, who will recognize the opportunity for energy savings. If you’re leasing your solar panels, you’ll have to either buy them outright before the sale or transfer the lease to the new owners.

Reduce Carbon Emissions With Solar Energy

Solar energy reduces carbon emissions, aligning your business with growing environmental, social, and governance (ESG) expectations. Today’s consumers and investors are increasingly interested in companies that prioritize sustainability. A visible investment in solar power can enhance your brand image, helping to attract eco-conscious clients and partners. Solar panels also protect your business against future regulatory changes that could require businesses to be more environmentally conscious.

Leasing Commercial Solar Panels

Leasing solar panels means that your business does not own the system. Instead, you agree to pay a fixed monthly fee to a third-party solar provider for the use of their equipment. These agreements typically last 15 to 25 years and can come in different forms.

One common structure is the solar lease, where you pay a monthly fee for the system regardless of how much power it produces. Another is the Power Purchase Agreement (PPA), where you pay based on the amount of electricity the system generates.

Solar Panel Leasing: Pay Later

Leasing generally involves little to no upfront cost. This can be a major advantage for businesses that want to preserve their capital or allocate funds to other initiatives. Installation, maintenance, and repairs are usually included in the lease, which means you won’t have to worry about system upkeep.

However, leasing also has its trade-offs. Since you don’t own the system, you won’t benefit from any long-term asset appreciation. Leasing contracts can be complex, and early termination may incur penalties. Having a leased system might also make it more difficult to sell or refinance a property, as potential buyers may not want to assume the lease.

What Does Buying Commercial Solar Panels Involve?

Purchasing solar panels outright means your business owns the system and can fully control its use. This can be done through an upfront cash payment or through financing options such as loans or equipment leasing.

Ownership brings several advantages, such as the fact that you retain full rights to any incentives or rebates, including those offered by:

  • Natural Resources Canada
  • CleanBC
  • Other municipal or utility programs

Businesses that purchase their systems are eligible for the full range of federal and provincial tax benefits, which can significantly lower net installation costs.

Buying Solar Panels: Long-Term Savings

Financially, buying is more cost-effective over the long term. While the initial investment is higher, the absence of monthly lease payments means greater savings over time. A well-maintained system can offer a strong return on investment (ROI), especially as utility rates rise.

In addition, buying solar panels may increase the value of your property. Owned systems are considered tangible assets that can improve appraisal values. This can be particularly beneficial for businesses that plan to sell or refinance their commercial property in the future.

However, ownership also means assuming full responsibility for:

  • Solar panel installation
  • Solar panel maintenance
  • Panel repairs

While warranties cover many of these needs, it’s still up to the business to coordinate service. Financing terms can vary widely, and businesses with lower credit ratings might face higher interest rates.

Comparing Long-Term Costs and Liabilities

Over a 20 to 25-year period, buying a solar panel system usually results in lower total costs than leasing. Monthly lease payments can add up to more than the system's purchase price, especially when you factor in missed incentives.

Leasing, on the other hand, offers predictability and low upfront expense, which is appealing for businesses with limited capital. However, leases often include annual escalator clauses that increase payments over time. It’s important to read the fine print and understand all financial obligations before committing.

Another key liability with leasing is contract flexibility. If you want to exit the lease early, relocate, or sell the property, you may face transfer issues or early termination fees. In contrast, your purchased system offers more flexibility and complete control over asset management.

Does Solar Panel Installation Differ Based on Leasing or Buying?

When leasing, the solar provider typically handles the entire process, including site assessment, system design, permitting, installation, and maintenance. They may offer limited options in terms of solar panel brands and system specifications since they prioritize economies of scale and cost efficiency. That means you might be limited to standard options rather than premium, high-efficiency panels.

On the other hand, purchasing gives you the freedom to choose the components of your system. You can opt for higher-efficiency panels, longer-lasting inverters, or even integrated energy storage systems. Since you’re making a long-term investment, you have a greater incentive to customize the system to suit your building’s energy profile and your operational goals.

Commercial solar panel ownership also allows you to select your preferred installer or contractor, giving you more control over quality and service timelines. While leasing providers often rely on in-house teams or subcontractors, buying lets you shop around for the best fit.

Are You Limited to Certain Solar Equipment Depending on Your Choice?

Generally, leasing providers use standardized equipment to streamline operations. This often means that you’ll be limited to a few select models of solar panels and inverters.

While these systems are typically reliable and efficient, they may not offer the highest performance available on the market. If you buy, however, you can choose from a wide range of manufacturers and technologies. Whether you want ultra-efficient monocrystalline panels, bifacial modules, or solar trackers, buying gives you the freedom to design a system tailored to your building’s needs and aesthetic preferences.

Grants and Rebates for Solar in British Columbia: Leasing vs. Buying

British Columbia offers a number of incentives for businesses that install solar energy systems. That said, not everyone’s eligible. Your eligibility depends largely on ownership. For example, commercial programs such as CleanBC’s Better Buildings program offer rebates for energy-efficient upgrades, including solar panel installations, but usually only to owners.

Local utilities may also offer performance-based incentives or net metering programs that are more favorable to system owners. For example, BC Hydro’s Net Metering program (which we also covered here) allows eligible customers to receive credit for surplus energy sent back to the grid. Once again, this is typically restricted to owners of the solar system.

So if you want to maximize your access to financial incentives, buying is almost always the better option. Leasing might still offer some indirect benefits, such as avoided maintenance costs, but it limits your ability to leverage rebates and tax breaks.

Let Ready Solar Inc Help You Make the Right Solar Energy Decisions

Choosing between leasing and buying commercial solar panels isn’t a one-size-fits-all decision. It depends on your business goals, financial health, property ownership status, and long-term energy strategy.

Ultimately, solar power is an investment in your business’s future. Whether you lease or buy, installing commercial solar panels can reduce operational costs, improve sustainability, and position your business as a leader in clean energy. However, to capture the full value available in British Columbia, owning your system is often the smarter financial play.

Still unsure? One of Ready Solar Inc’s qualified solar energy consultants can help you model both options side-by-side and determine which approach best aligns with your goals. With the right plan, your business can harness the sun for decades to come. Call (604) 262-6919 to schedule a sit-down with us.