Flexible Financing Options for

Commercial, Business or Agricultural Applications

Commercial Financing Options

Payment Plans for Commercial Solar Projects in the North Valley

A successful solar project requires careful consideration of financing options. Alternative Energy Systems has the expertise to you help you find the best commercial solar power solution to meet your specific needs. We will work with you to ensure your unique solar energy project delivers the greatest total savings on energy costs over the life of your system.

Cash Purchase – Own the System & the Energy

The simplest path to financing a solar project is to purchase the system directly. If you have available capital, existing tax liabilities, and can benefit from accelerated depreciation of your solar equipment, you may find that purchasing your solar system outright is the best option. Ownership provides the greatest total energy cost savings on energy over the life of the system.

Benefits of cash purchases include:

  • Streamlined process: Reduce the total time required for a solar project and begin benefiting from clean solar electricity as quickly as possible
  • Attain the greatest potential savings: By avoiding third party expenses and interest rates, you can maintain complete control of your solar PV energy system while realizing the highest savings from your solar investment
  • Efficient application of incentives: The owner of a commercial solar installation is eligible for a federal investment tax credit worth 30% of the system value. When combined with additional state and local rebates, the cost of a commercial solar power project can be offset by 50% or more
  • Protection from rising electricity prices: Secure a low electricity rate for the lifetime of the system and reduce your exposure to volatile energy rates
  • Promote clean energy: Take advantage of Renewable Energy Credits (RECs) and promote your organization’s corporate social responsibility message by becoming a solar powered company

Solar Power Purchase Agreement (PPA) – Buy the Energy

Solar PPA financing allows your organization to purchase solar energy on a monthly basis, much like you already purchase electricity from your local utility. You host the solar equipment at your site, but you don’t have any of the responsibility of ownership or maintenance of the system. All you pay for is clean, renewable energy at set rate per kilowatt-hour, the same measurement of energy you see on your utility bill today. The Solar PPA provides financing flexibility and predictable future energy rates with no upfront costs.

Benefits of Solar PPA include:

  • No capital investment: There is no initial capital investment since you only pay for the solar electricity that is produced
  • Fixed energy rates: A PPA provides a powerful hedge against volatile electricity prices
  • Full-Service project management and maintenance: Alternative Energy Systems designs, develops, and operates your solar energy system from start-to-finish. You have no responsibility for owning, operating, or maintaining the solar system equipment
  • Monetize tax credits and solar incentives: Benefit from solar tax credits, even if your organization has no tax liability to offset. The PPA financier is able to monetize available tax incentives and pass these savings on to you in the form of a lower PPA rate

Solar Lease – Lease the System, Use the Energy

This option allows solar-powered companies to benefit from solar energy in exchange for a monthly lease payment for the use of the system hardware. Typical commercial solar lease agreements range from 15-20 years at which point the lease can be renewed or the customer can choose to purchase the system for a residual value. For organizations that cannot fully capitalize on available tax incentives and want to avoid upfront capital investment, a lease may be the best option to facilitate your transition to solar power.

Benefits of solar leases include the following:

  • Low upfront cost: There are little to no upfront costs for a lease, allowing you to reduce your initial capital investment
  • Save on electricity costs: Monthly lease payments are more than offset by the reduction in monthly electricity bills, resulting in savings on total electricity costs
  • Protection against rising electricity prices: Secure a low electricity rate at a fixed price per kilowatt-hour and reduce your exposure to volatile energy rates
  • Flexible options: At the end of the term, typically between 10 to 20 years, you may choose to purchase the solar power system for a small, residual value, renew the lease, or opt to have the system removed.
  • Partnership choices: Allows you to work with your existing equipment lease financial partners

No matter what financing option best fits your commercial venture, speak to Alternative Energy Systems today to make an appointment for a free initial estimate.

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Cut your monthly energy bills and save by going solar! Fill out the following form or call (855) 419-1488. Someone from our team will reach out to you shortly.

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