Same battery, three ways to pay for it.
The equipment, the installer and the savings are identical. What changes is who writes the check, who gets the federal credit, and what the building pays each month. Here is the comparison KEEL runs on every project, with illustrative numbers.
A 480 kWh battery on a commercial building
Illustrative figures for a commercial building on a high-demand-charge utility rate (a New York example): a 240 kW / 480 kWh battery, contract price $542,640 before incentives, about $70,000 a year of modeled demand-charge savings and demand-response value on the building's own interval data, a $60,000 state storage incentive, and a 40% federal credit assuming the equipment earns the domestic-content adder. Your project will differ; the structure of the comparison will not.
| Line | Cash purchase | Capital lease | Operating lease |
|---|---|---|---|
| Paid at signing | $542,640 | $0 | $0 |
| Who owns the system | You | You, from signing | The funding partner |
| Federal credit (≈ $217,000 at 40%) | Yours, if you have the tax capacity | Yours; applied to pay down principal at month 14 | Funding partner's; reflected in the payment |
| State incentive ($60,000) | Applied to your cost | Applied at closing, lowers the payment | Applied at closing, lowers the payment |
| Depreciation | Yours | Yours | Funding partner's |
| Monthly for 10 years (illustrative) | $0, capital already spent | ≈ $5,850 for months 1–14, then ≈ $3,000 once the credit is applied | ≈ $2,300, fixed |
| Operations, maintenance, warranty admin | You | KEEL, for the term | KEEL, for the term |
| End of term | Nothing changes | Defined buyout, title transfers | Buy at market value, renew, or remove |
| Best fit | Cash-rich owner with tax capacity and a facilities team | Most commercial, multifamily and tax-exempt owners | Owners who cannot use the credit |
Illustrative only. Figures are from a September 2026 KEEL pricing-engine run on a real commercial account, rounded and anonymized: 10-year term, capital lease at 8.0% with the federal credit applied to principal at month 14, operating lease priced to the funding partner's return with the credit and depreciation on its side, NYSERDA Westchester block at $125 per kWh, no time-of-use arbitrage (the account's supply and delivery energy rates are flat). KEEL prices every project from its own bills and the program documents in force on the day.
How to read it
The capital lease carries a higher payment for the first year, then drops sharply once the federal credit pays down principal, and the building keeps the depreciation on top. Over ten years it usually produces the lowest total cost for an owner who can use the credit. The operating lease has the lower, flatter payment because the funding partner is taking the credit and depreciation and pricing them in; it is the right answer when the building cannot use those benefits itself.
Buying outright is not wrong. It is a bet that the building has better uses for half a million dollars than the lease rate implies, and that someone on staff will manage the system for ten years. KEEL prices that option honestly and will tell you when it wins.
What is the same in every column: a licensed local contractor installs it, the equipment carries its manufacturer warranty for the term, and the savings depend on how the building is used. KEEL does not guarantee a savings figure; it shows you the model and offers an energy-savings insurance policy for a fee if you want one.
Common questions
What is the difference between a capital lease and an operating lease?
In both cases a funding partner funds 100% of project cost and signs the lease directly with the property; KEEL arranges and services it. In a capital lease the property is the owner from signing: it claims the federal credit and depreciation, pays a fixed monthly payment for the term, and makes a defined buyout payment at the end if title has not already passed. In an operating lease the funding partner owns the system, claims the credit, and prices it into a lower monthly payment; at the end the property can buy at fair market value, renew, or have the system removed.
Which one will KEEL recommend?
Capital lease for most commercial and multifamily owners with taxable income, and for tax-exempt organizations using direct pay. Operating lease for owners who cannot use the credit, newly formed entities, and some co-ops and condos. KEEL prices both from the same bills and shows the monthly difference.
Can I pay the lease down early?
Yes. In the first 18 months you can apply a lump sum, typically the federal credit proceeds, against principal and the monthly payment is re-amortized down for the balance of the term.
When does buying outright win?
When the building has strong taxable income, cash it does not need elsewhere, and an in-house team that will handle warranty claims, monitoring and demand-response enrollment. If that is you, KEEL will say so; the contractor can still install it and KEEL can still run the incentive paperwork for a fee.
Want the three columns for your building?
Send one bill. KEEL prices all three structures from it and tells you which one it recommends and why.