Problem:
I have a customer who is a homeowner who is running a business from their home and has the opportunity to lease solar panels from company x. Company x is responsible for installation, and maintenance of these solar panels, and replacement of the panels if damaged or if they damage the house. The homeowner can buy the panels out right at any time FMV and then the homeowner will be responsible for the maintenance after the purchase.
What advice would you give both on a structuring a lease transaction. Recommend a leasing option (capital, operating, or other leasing arrangement). Would the homeowner do this as a business or a homeowner Please support your recommendation briefly explain.