Financing for commercial solar energy projects can generally be broken down into two basic models:
Cash or Loan Investment:
With energy costs rising an average of 6% each year over the last decade and solar installations generally achieving returns of 7-12% solar clearly offers a compelling alternative to a low return savings account.
Power Purchase Agreements (PPA) and Leasing:
Owning a large scale solar installation isn’t the right solution for all businesses or institutions. While direct ownership often generates the highest returns, PPA’s and leasing can be an attractive option that doesn’t require an upfront capital outlay and can be cash positive from day one. The basic structure of a PPA or leasing arrangement generally involves a commercial solar installation being placed on the client’s property. The client agrees to purchase power from the system at an agreed upon rate, but the ownership and maintenance responsibility remains with a third party provider. Attractive elements of power purchase agreements and leasing options include low or no upfront costs, often cash positive from day one, and no maintenance concerns.
As a full service solar integrator our experienced staff will work with you to explore your financing options and provide detailed analysis and projections to assist in your financing decisions.