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.