How does it work?
Instead of buying the efficiency upgrade equipment - a fancy way of saying 'lights' - and investing a sum of money up front, another option is to simply lease the equipment and pay for it out of the hydro bill savings.
This can be a very attractive option where the lease payment is less than the monthly savings, in which case you realize immediate net savings from the moment the upgrade is completed.
What are the terms?
Our standard lease term coincides with our standard warranty period: 60 months. Interest rates will vary substantially depending on credit rating and total lease amount.
The information package we provide you with upon completing the site survey will contain an estimated monthly payment amount, if the project qualifies.
What if I don't own the building?
Roughly half of our clients don't own the building they occupy. Though this certainly need not stand in the way of investing in hydro bill savings equipment, a lease term on installed equipment can only be made for the balance of the lease term remaining on the building. For example, if there are 26 months remaining until your building lease is up for renewal, the lighting upgrade lease will need to be limited to a 26 month term.
This will either mean that the monthly payments are larger, or that there is a buy-out amount at the end.
Does every business qualify?
No. Either because of credit issues, or, more likely, because a lease option simply does not make sense, in certain cases we do not offer leasing.
We don't make extra money through a lease arrangement, so we have no motivation to sign you up if the numbers don't work out to your advantage.
What are the tax implications?
An often overlooked but no less attractive benefit of leasing is that monthly payments can be written off as an expense. That means that in addition to saving on your hydro bills, you also save on taxes.