IES Texas Solar Discusses the Solar Panel Capital Lease as Commercial Financing Option

IES Texas Solar, a company based in Rowlett, TX, has recently published a blog post featuring an interview with Justin Charles, Energy Solutions Manager at IES, with regards to the solar panel capital lease as a commercial financing option for a solar panel installation. He has been in the solar industry for about 12 years and he has been with IES for about 18 months. He has been focusing on what and how they build their commercial solar installation opportunities, both from an engineering and a creative design viewpoint. In addition, they also help customers complete a project using creating financing solutions that allow them to afford the solar projects that they are interested in.

In this particular discussion, Justin Charles discusses the capital lease as one of the commercial financing options for a solar installation project. A capital lease or a finance lease is considered as an asset on the balance sheet of the company. On the other hand, an operating lease is treated like an expense that is off the balance sheet. With a capital lease, the company is able to benefit from all of the tax and depreciation advantages that come with a commercial solar installation. However, the monthly payments are usually higher compared to the monthly payments for an operating lease. And at the end of the term of the lease, the lessee is provided with the option to buy the solar system from the bank.

solar panel install

There are a number of things to take into account when choosing the capital lease as the commercial solar panel financing option. First of all, in a capital lease, the ownership conveys to the lessee, which is the company who is having the solar panel system installed. Second, the federal income tax credit provided by the government as an incentive will go to the lessee. Third, the capital lease is funded by a note payable and the equipment installed are considered as assets. Thus, there is a depreciation of the equipment, which will decrease the taxable income.

Justin Charles says, “So, there are times that both the capital lease and an operating lease might seem to make sense and really the difference between them is who’s going to take the tax credit and can you absorb the tax liability? And that’s how you help choose between which one of those two options you want to look at. Solar is a phenomenal and stable financial investment for almost any and all types of businesses and really the way to figure out if it’s right for your business is to talk to a consultant. Start with getting them at least one but preferably 12 months of your bills and look and see what kind of opportunity there is for you in savings. And then we can look and see if there is a perfect financial vehicle for you.”

Established in 1973 as Houston-Stafford Electric, IES grew rapidly into one of the largest and most well-known electrical contracting companies that offer their services throughout the country, but most especially in the state of Texas. In the early 2000s, the company started to explore the possibility of offering solar installation services and since 2012, they have been offering the full turnkey process for solar panel projects. They provide a wide range of services, including: voice, data, and video design and installation; security and fire alarm systems monitoring and installation; and solar design and installation services.

IES Texas Solar provides both residential and commercial solar panel installation services. There are several factors that make IES unmatched by other providers of commercial solar panel installation. These include: their proven experience, having provided such services since 2010 and completing more than 1,500 solar installations in Texas; provision of a turn-key installation; and the fact that IES is an industry leader in both commercial and residential solar installations.

Those who are interested in learning more about the commercial solar panel capital lease can check out the IES Texas Solar website, or contact them on the telephone or through email. They can also check out the blog post and listen to the interview. They are actively growing their business and accepting new clients.


For more information about IES Texas Solar, contact the company here:

IES Texas Solar
IES Texas Solar
2500 Chandler Dr #200, Rowlett, TX 75088