Solar Financing
Corporate Solar Financing
It wasn’t all that long ago that the only way to complete a solar project was to purchase the system outright. This was expensive and prohibited many companies from considering installing solar. Today, that is no longer the case. Due to increased interest in renewable energy, new products have emerged and the options for financing have expanded greatly.
SolarConnect upholds a commitment to integrity and responsibility. Through this commitment, we have engaged with our customers and their financial institutions to provide seamless transactions. Paying with cash is always an option; however, customers can also choose to secure a loan, sign a lease, or to use power purchase agreements. Our team is committed to helping you determine the best financial option available.
What Is Solar Leasing?
Commercial Solar Leases are an agreement in which a third-party leases solar panels to a developer, and the third party makes payments on the energy produced. The payments for the solar installation will be less than what you previously paid for energy. The arrangement helps companies avoid the upfront costs, based on the system’s energy production.
What Is A Power Purchase Agreement?
A Power Purchase Agreement (PPA) is an agreement in which aspects of the project, such as environmental permitting and solar installation, are facilitated by a developer on a customer’s property. These agreements require that for a predetermined amount of time, solar customers use the energy the system creates and exclusively use the solar services for the duration of the contract.
PPAs are the most common financing option for a commercial solar system. These agreements typically last up to 25 years and are renewable. This is a favorable option for entities such as non-profits and municipalities that cannot support the upfront cost or utilize tax incentives, such as the Solar ITC.
Which Financing Option Is Right For You?
Available cash flow will ultimately determine which financing options are right for your business. Due to changes to the Solar ITC in the Inflation Reduction Act (IRA), larger companies with access to capital may find solar loans as the best financing option. Smaller companies and developers may favor a solar lease or PPA. Ultimately, your ideal financing option will vary based on your company’s available capital, the efficiency of the solar system, and their perception of risk.
Ready to Start Saving with Solar?
Take control of your energy costs and position your business for a more sustainable future. Contact us today to schedule a consultation and see how commercial solar can work for you.
