Talk to the Solar Energy Financing Experts
Given the confusing array of solar energy rebates, tax incentives, and financing options, assessing the long-term financial feasibility of any solar project requires a high level of expertise and a deep understanding of how financing and incentives may be structured for homeowners, commercial sites and nonprofit or public-sector entities. Our solar energy finance experts will help you understand your options, including the federal Income Tax Credit (ITC) and accelerated depreciation available to for-profit entities. For customers that are not able to utilize the tax benefits, we can bring in a third-party financing partner who will take the tax credit and pass the benefit along to your organization. We’ll also guide you through the process of deciding if you’re better off making on- or off-balance-sheet financing payments.
Solar financing options for which we can offer assistance:
CAPITAL LEASE
- Ideal for commercial customers that can take full advantage of tax benefits
- Tax benefits stay with you
- Zero initial investment
- Fixed monthly payments to the lessor
- Terms can vary from 1-7 years and you own system at end of term
- Considered on-balance-sheet
- Interest generally considered tax-deductible
OPERATING LEASE
- Ideal for commercial customers that can’t take full advantage of tax benefits
- Third-party owns the system and receives tax benefits
- Zero initial investment
- Fixed monthly payments to a third-party owner
- The term is generally 7-10 years and concludes with you purchasing the system
- Generally considered off-balance-sheet
COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY LOAN (C-PACE)
- Ideal for a nonprofit or for-profit customer looking for long-term stability in energy costs
- Tax benefits stay with you as long as you own the property
- Eligibility is based on property value & geographic location
- Zero initial investment
- Loan repayment is accomplished via a special property tax assessment that automatically transfers to the new owner if you sell the property
- Savings and payments can be passed to the tenant in a triple-net-lease
- The extended length of term (10-20 years) typically allows for positive cash flow from day one
- Interest generally considered tax-deductible
POWER PURCHASE AGREEMENT (PPA)
- Ideal for a nonprofit or government customer that is not eligible for tax benefits
- Third-party owns and maintains the system and receives tax benefits
- Zero initial investment
- Monthly payment to the third party at an agreed-upon rate for energy used
- PPA rate is less than current utility rates, resulting in positive cash flow from day one
- The term is typically 15-20 years, with the opportunity to purchase at specific points during the term
- Considered off-balance-sheet
PREPAID POWER PURCHASE AGREEMENT
- Ideal for entities that have the capital to invest but are unable to use the tax benefits
- Third-party owns and maintains the system and receives tax benefits
- Upfront investment
- No ongoing payments
- 15 to 20 percent reduction in total investment amount from the cash purchase price
Call us at 510-845-2997 for help with financing for your solar project.