Commercial Solar Financing
Our clients typically choose one of two options.
- Finance on their own and take advantage of the appropriate Federal grants or Federal Investment Tax Credits, SRECs, state grants and accelerated depreciation.
- Power Purchase Agreements (PPA) where the PPA owner will install a solar system on the client's roof or ground for a long term with an agreed upon price for the power and with no capital cost to the client. The PPA provider provides the project financing and secures the value of grants, tax credits and other incentives. For large systems over 250KW, we have established relationships and experience with industry leading PPA providers to help customers finance, install and operate solar power plants at no upfront cost to the client.
Power Purchase Agreements (PPA's)
A Power Purchase Agreement, or PPA, is a legal contract between an electricity producer (the PPA) and a power purchaser (client) where the purchaser buys electricity from the generator for a stipulated term at an established rate. In a typical PPA, the PPA provider secures project financing, maintains the system and sells the electricity to the electricity producer. There is no capital cost for the client. A PPA can play a key role in financing a solar electricity project as it enables customers to take advantage of low-cost electricity with long-term pricing stability, a smaller carbon footprint, and a greener public image. Our PPA partners provide all necessary maintenance, monitoring, service and repairs so the customer can concentrate on their core business and not on becoming a solar energy expert. In addition, the PPA provider as the owner, provides the required insurance on the system. Many PPAs will provide the client with an option to buy the system after a given time frame.
Yet another financial benefit of investing in solar energy is that it is a pre-tax investment.
Conventional investment instruments are taxed when you make a gain on you investment, whether it is a stock, real estate, etc.
An investment in solar pays your investment back and then has financial gains through eliminating electricity costs and in some areas through direct payments from the utility company; all of which are non-taxable gains.
This advantage can put a solar investment rate of return up to 30% ahead of conventional investments.