A solar performance leasing agreement is an agreement where the solar equipment is leased to an entity for the sole purpose of generating electricity. The monthly leasing rate is based on the electricity generation of the equipment and a preagreed electricity rate which is lower than the available retail rate. Many entities lack the capital to purchase the solar equipment or even if they have the capital, rather invest in projects that will increase the added value of the organization instead of investing in cost cutting measures. Leasing the installed solar equipment reduces their overall electricity cost without having to deploy their own capital or having to go through an extensive application to secure a loan from an institution or private entity. As such, the entity enjoys savings on their electricity expenses from day 1. To keep risk of default to a minimum, we try to limit the length of the leases to a maximum of 12 year and allow the entity to purchase the equipment at a residual value once the lease expires. Details of the lease conditions can be found in the offer letters. Read carefully before participating.