Common Sales Mistakes

Why Leasing Makes Companies So Much More Money Than Selling

Mar 7, 20263 min

The industry often prefers leasing because the long-term cash flow and tax benefits can be worth several times more than a direct sale.

LEASEPPAINVESTMENTPITFALLS

A company selling a system outright earns once. A company leasing or structuring a PPA can collect revenue for decades while also capturing tax credits and depreciation benefits upstream.

That is why many firms push those structures so aggressively. The economic incentive for the company is often far better than the economic outcome for the homeowner.

If a system could pay back in a relatively short window under ownership, turning it into a multi-decade contract often shifts the best economics away from the customer and toward the provider.