At Sun Solar, we’ll guide you through the financing process and use our relationships to help you get the financing you need.
One of the biggest hurdles to overcome when doing any large project is figuring out the best way to pay for it. Solar can save your company large amounts of money over the long-term, but it does take an investment on the front end. With Sun Solar, you can consider multiple financing options to help get the project done. While not every business will qualify for these programs, you’ll never know until you look into them.
Sun Solar offers a commercial operating lease that allows your business to go solar without a large upfront investment. With this program, a solar system is installed on your business and you simply start making monthly lease payments. For most businesses, the lease payment will be near or less than your current electric bill from day one. It’s off-balance sheet, so it won’t even affect how your company’s financials look.
After making lease payments for seven years, you make a small buyout payment to end the lease. After that, the system is yours with no strings attached. Since a solar system is guaranteed for 25 years, that gives you 18 years of free electricity! Think about all the flexibility your business could have by lowering its overhead.
Power Purchase Agreements (PPAs)
For large commercial, school, and government projects, one of the most enticing options available is the Power Purchase Agreement (PPA). With this option, you pay no money down and have a solar system installed on your business or organization. Then you simply buy the power that the system produces at a cheaper rate than what you’re paying the electric company now. It’s a great way to take advantage of solar technology without actually buying the system. It’s almost like agreeing to a subscription service that provides you with electricity at a cheaper rate than the grid.
With a loan, your business obtains the financing to purchase a system outright. With this option, your business gets to take advantage of tax benefits along with the energy savings.
If you have a business and would like to install solar to either reduce or eliminate your electric bill, there are several resources you can take advantage of. Take a look at the following and see if your business can take advantage of these helpful resources.
Depreciation and Tax Credits. All businesses that choose to install a solar system on their facility will be able to depreciate the total cost of their system as a normal business expense over five years. This is in addition to the 30% Federal Tax Credit they will automatically qualify for.
REAP Grants. The US Department of Agriculture also offers loan guarantees and up to 25% of the total cost to go solar for agricultural producers and small, rural businesses through their Rural Energy for America Program (REAP). Most businesses located outside of metro areas are candidates. Check the USDA website to see if you qualify.
PACE. The state of Missouri offers the Property Assessed Clean Energy program (PACE) that allows businesses in participating areas to finance the cost of their system for up to 20 years with repayment added to each year’s property tax. However, participants must be in a city or county that has agreed to participate in PACE. Be sure to check their website to see if your area qualifies.