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Solar Finance · Finance Lease

Solar finance lease

Fund solar on finance lease and lease it over its useful life, with an option to buy at the residual. Indicative rates From ~7.6% p.a. (prime borrower) — subject to credit.

Quick answer

Solar finance structured as finance lease means you lease it over its useful life, with an option to buy at the residual. Commercial solar finance funds rooftop and ground-mounted solar PV systems, inverters, battery storage and EV charging infrastructure for NZ businesses. Typical structures are hire purchase or chattel mortgage on the installed system, with terms 60–84 months matched to the useful life.

Is finance lease right for solar?

Finance leases are popular for equipment like IT and medical gear, turning the cost into a deductible operating expense across the equipment’s useful life.

About solar finance

Commercial solar finance funds rooftop and ground-mounted solar PV systems, inverters, battery storage and EV charging infrastructure for NZ businesses. Typical structures are hire purchase or chattel mortgage on the installed system, with terms 60–84 months matched to the useful life. The economics often allow energy bill savings to cover the finance payment from year one. Indicative rates from ~7.6% p.a. for prime borrowers, with both new commercial properties and retrofits eligible.

Why finance lease

  • ✓Lease payments are deductible operating expenses
  • ✓No GST charged upfront on the asset — GST is on each lease payment
  • ✓Often easier approval than a traditional loan for new businesses
  • ✓Predictable fixed payments
  • ✓May suit assets with strong second-hand market (machinery, plant)

Trade-offs to weigh

  • –You do not own the asset during the term
  • –Buying out at end of term usually requires negotiating residual
  • –Less flexibility than hire purchase if you want to sell mid-term

Solar finance at a glance

Indicative rate
From ~7.6% p.a. (prime borrower) — subject to credit
Typical term
60–84 months matched to useful life
Deposit / LVR
Up to 100% on new commercial installation from a recognised installer
Lenders
UDC Finance, Heartland Bank, BNZ Asset Finance

What you can fund

Rooftop solar PV (commercial buildings, factories, warehouses)Ground-mount solar arrays (farms, large sites)Battery storage systemsInverters and grid-connect equipmentEV charging infrastructureSolar monitoring and metering

How finance lease is treated

Ownership during term Lender owns the asset
Ownership at end of term Lender (with option to purchase at residual)
Who claims depreciation Lender
GST treatment GST on each lease payment (not upfront)

See the full breakdown in the finance lease guide, compare all four structures on the comparison page, or read more on solar finance.

Rates, terms and LVR are indicative market ranges for guidance only — not a quote, not financial or tax advice, and subject to lender credit approval. Confirm tax and accounting treatment with your accountant.

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Frequently asked questions

Yes. Finance Lease is a common way to fund solar for New Zealand businesses — it means you lease it over its useful life, with an option to buy at the residual. A finance lease is an arrangement where the lender owns the asset and rents it to your business for an agreed term, with you taking on most of the risks and rewards of ownership economically. Lease payments are treated as an operating expense for tax purposes. All applications are subject to lender credit approval.