Yes, Missouri Businesses – You CAN Go Solar with No Cash Up Front! 

The Short & Sweet Guide to Commercial Solar Loans, Leases & P.P.A.s 

You’re busy running your company. Although you’re interested in going solar, you have little time to ferret out all the pros and cons of commercial solar loans vs. leases vs. purchase agreements.

That’s why we’ve done it for you.

ALL THREE OPTIONS:

1. Lower your electricity bill
2. Guarantee your solar panels’ performance for 20-25 years
3. Show prospective customers your commitment to helping the environment

OPTION 1: SOLAR PANEL PURCHASE + SOLAR LOANS

Purchasing your solar panels saves you the most in the long run, but usually at the greatest up-front cost – though, as of 2018, it’s more affordable than you might think. Several jaw-droppingly huge federal and state rebates cut the initial price, and low-interest solar loans available to many Missouri businesses mean you won’t need much capital. (Check out our resource-filled guide to these programs here.)

Pros:

1. Most cost-effective long-term. You get free electricity from the first day and can usually “sell” the extra to your utility via net metering
2. Lowest possible price, thanks to major federal and state solar benefits including depreciation programs, REAP grants, PACE financing, and a 30% federal tax credit
3. Only some up-front cash needed, thanks to the above incentives. (Occasionally, businesses can claim so many rebates and grants that they don’t even need a down payment!)

Cons:

1. Some financing programs may require your business to have at least some cash for a down payment
2. You will be responsible for maintenance (Granted, solar requires very minimum maintenance and Sun Solar panels come with a 25-year warranty with extended warranties available!)

OPTION 2: COMMERCIAL SOLAR LEASES

Solar leases are like subscribing to iTunes. After your solar company installs solar panels on your building at no cost, your business “rents” the panels’ use at a fixed fee per month – resulting in lowered electricity rates for decades to come.

With Sun Solar’s lease program (the only solar lease program in Missouri as of July 2018), you can even buy the system in 7 years via small down payments each month, with a final buyout payment at the end.

Pros:

1. No down payment needed
2. Affordable monthly payments to help save you on electricity.
3. Rate – including down payment – is usually less than your previous utility bill
4. Maintenance is the installer’s job, not yours
5. With Sun Solar leased systems, you can buy your solar system after 5 years, receiving its free electricity for 15-20 out of the system’s guaranteed 25 years

Cons:

1. If you buy your solar system via lease, you cannot claim the tax credit available to its original owner (but you still get lower monthly payments)
2. You won’t receive completely free electricity until you’ve paid for the system

OPTION 3: COMMERCIAL P.P.A.S (POWER PURCHASE AGREEMENTS)

This option’s similar to buying songs from iTunes. It’s often a cost-effective choice for large businesses, schools, and government facilities.

Like a solar lease, a PPA allows you to have solar panels installed on your property at no expense, after which you make monthly payments to the installer for its electricity. However, unlike a solar lease, that monthly fee isn’t fixed; instead, you pay a fixed rate for each watt you use, just like you would a traditional utility bill (except at a lower rate than grid-carried electricity).

Pros:

1. No money down
2. Reducing your business’s electricity use reduces your monthly payment
3. No need to pay for the solar system itself – ever
4. Immediate savings on your electricity bill
5. Maintenance is the installer’s job, not yours
6. Therefore, you get cheaper electricity without any added cost

Cons:

1. If you need to use more electricity than usual, you’ll pay for it (unlike a solar lease)
2. You’ll never have completely free electricity unless you eventually buy the system
3. If you do choose to buy eventually, you can’t claim the tax credits available to its original owner