Solar Leasing and Finance Options
Various funding tools are available from local, state and federal sources to facilitate affordable, and in many cases, a no-money-down, positive cash-flow scenario, providing solar to most Commercial, Industrial, Residential, and Not-for-Profit properties.
Solar energy is a low-risk, high-reward investment. Customers can often obtain risk-adjusted ROI’s, unsurpassed by other existing investment alternatives.
One size does not fit all. We understand the value of balancing capital and resources when running a business, and take the time to understand your goals in order to model customized financing structures to meet your needs.
- Like the Capital Lease (below) this structure provides all energy savings, tax credits, accelerated depreciation, environmental attributes (e.g., RECs) and other incentives.
Conventional Financing / Capital Lease
- Immediately reap all energy savings, tax credits, accelerated depreciation, environmental attributes (e.g., RECs) and other incentives while minimizing / eliminating your capital outlay.
- You’ll receive 30% of the project gross cost as a dollar-for-dollar reduction in your federal tax liability, which can be taken all in year one or carried forward up to 20 years.
- Accelerated depreciation allows for a 5 year depreciation schedule for 85% of the gross System cost.
- Up to 100% financing is available for 5-10 year terms.
- The Operating lease is a non-balance sheet item and is fully expensed.
- It’s the perfect option for companies with a strong balance sheet and good cash flow, but without the appetite for large tax credit and depreciation.
- This option allows the customer to monetize both the depreciation and the ITC, thereby lowering overall cost.
- Under this structure, you’ll receive all energy savings and environmental attributes.
Power Purchase Agreement (PPA)
- A PPA is a contract to purchase solar generated electricity at a predetermined rate for a period, usually 15-20 years.
- Your cost of energy is predictable, and will almost always be less than what you’re paying today!
- We take full responsibility for the purchase, ongoing ownership and maintenance of your System.