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.
As a GoGreen Financing contractor, Sun Light & Power can offer financing for bundled solar PV + battery storage, EV chargers, and battery storage for pre-existing solar! Financing can include panel upgrades, roof repair, battery enclosure mitigation, permit costs and other necessary work. For solar + storage projects, there is a new lending cap of $75,000 and terms to 20 years.
Interested in GoGreen Home? Learn more about the residential program eligibility and guidelines here.
* Only available for customers who receive electricity from PG&E, SCE or SDG&E.
What is GoGreen Financing?
GoGreen Financing is part of the California Hub for Energy Efficiency Financing (CHEEF), a state-administered program working towards a cleaner and more energy-efficient California. Funds from investor-owned utility ratepayers power the program, and GoGreen partners with finance providers and local contractors to make it happen.
CHEEF is administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), which is housed in the California State Treasurer’s Office. Learn more on the CAEATFA website. The CHEEF and a series of energy efficiency financing pilot programs were authorized by the California Public Utilities Commission (CPUC) and developed in collaboration with the investor-owned utilities:
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☀️ Pacific Gas and Electric Company (PG&E®) |
☀️ Southern California Edison (SCE®) |
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☀️ Southern California Gas Company (SoCalGas®) |
☀️ San Diego Gas & Electric Company (SDG&E®) |
GoGreen Business
The Small Business Energy Efficiency Financing Program is designed to enable broad financing access and participation by small businesses.
- Available for property owners and tenants
- Attractive rates, extended terms and quick approvals
- Finance 100% of the cost of your project
- Option to repay on your utility bill
GoGreen Multifamily
GoGreen Multifamily complements other multifamily energy efficiency programs offering rebates or incentives by financing out-of-pocket costs.
- Finance up to 100% of project costs
- No property liens
- Upgrades for common areas and in-unit
- Multiple financing choices
- Option to add non-energy upgrades
- Combine with rebates and incentives
GoGreen's Program Goals
The State of California has ambitious goals to reduce greenhouse gas emissions and address climate change. An important part of achieving these goals and improving air quality is reducing energy use in existing buildings. Billions of dollars are needed for the upgrades, and there is simply not enough government or utility company funding to pay for these investments. The energy efficiency financing programs seek to:
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bring about broader and deeper energy savings than can be realized through traditional utility rebate and incentive programs
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make more private capital available for energy upgrades, so customers have access to financing to make their homes and businesses more comfortable and efficient
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help traditionally underserved customers access attractive financing
Benefits of GoGreen Financing
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☀️ Customers can enjoy affordable financing rates and terms. |
☀️ Contractors and energy service companies (ESCOs) can access broader energy efficiency projects. |
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☀️ Finance companies attract new members and customers. |
☀️ The State of California reaches its energy savings goals. |
Program features
The programs offer finance companies a credit enhancement in the form of a loss reserve. The loss reserve helps mitigate the risk for finance companies because they can access these funds in the case of a default. This allows the finance companies to offer more attractive terms – like lower rates, larger amounts to borrow, or longer time periods for repayment – than they otherwise could. The credit enhancement also allows finance companies to approve financing for a wider base of borrowers than they otherwise could, like homeowners with lower credit scores or small businesses with only a few years of operating history. Additionally, the small business program offers an on-bill repayment option. This allows customers to make, and finance companies to receive, convenient payments for financing charges through the bills of all four investor-owned utilities using the CHEEF infrastructure.
Learn more about program eligibility and guidelines on the GoGreen Financing website at the following links:
| ☀️ GoGreen Home | ☀️ GoGreen Business | ☀️ GoGreen Multifamily |
