Business solar power installations perform better when leased from a solar company rather than owned by the business, if there are performance-based incentives from the state.
That’s the conclusion of recent research from the Berkeley Haas School of Business at the University of California.
Assistant Professor Jose Guajardo studied the performance of non-residential solar power systems in California, which has performance-based incentives for solar production, between January 2008 and April 2013.
Guajardo found that the systems owned by third parties generated 4 percent more electricity than systems owned by the businesses. He concluded that better system design, rather than superior solar panel technology, may be responsible for the better power output.
Because these companies install many solar power systems, they benefit from experience and economies of scale, Guajardo said in a news release
He advises businesses to consider how the incentives behind each ownership model can affect a solar project from an operational perspective.