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Solar Finance · Operating Lease

Solar operating lease

Fund solar on operating lease and rent it for a fixed term with predictable cost, then hand it back. Indicative rates From ~7.6% p.a. (prime borrower) — subject to credit.

Quick answer

Solar finance structured as operating lease means you rent it for a fixed term with predictable cost, then hand it back. 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 operating lease right for solar?

Operating leases suit fast-moving equipment such as IT hardware that you refresh every two to three years and prefer to hand back rather than own outright.

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 operating lease

  • ✓Off balance sheet in some accounting treatments (subject to IFRS 16)
  • ✓Lease payments are typically fully deductible operating expense
  • ✓Residual-value risk sits with the lender, not you
  • ✓Maintenance, servicing, tyres and registration often bundled (fully maintained operating lease)
  • ✓Hand the asset back at end — no resale hassle

Trade-offs to weigh

  • –You never own the asset
  • –Early termination fees can be material
  • –Mileage / utilisation limits apply — overage charges if exceeded

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 operating lease is treated

Ownership during term Lender
Ownership at end of term Lender — you hand it back
Who claims depreciation Lender
GST treatment GST on each lease payment

See the full breakdown in the operating 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. Operating Lease is a common way to fund solar for New Zealand businesses — it means you rent it for a fixed term with predictable cost, then hand it back. An operating lease is a rental arrangement where your business pays to use an asset for a fixed term without taking on ownership. The lender carries the residual-value risk — at the end of the term you simply hand the asset back. All applications are subject to lender credit approval.