Solar Energy Companies’ Commercial Financing Options

As a business owner or commercial property owner, there are several solar financing options that you can utilize to make solar affordable and will allow you to reap the benefits of investing in green immediately.

More and more banks are beginning to offer loans for solar, and creative financing solutions such as leases and power purchase agreements (PPAs) that significantly reduce or eliminate the initial capital cost of a solar power system.

Below, we’ve provided a brief explanation PPAs and Lease options for commercial solar projects, which are provided by the various different solar energy companies out there.

Solar Lease

Financing a project with a solar lease option offsets any upfront system costs via your monthly lease payments.  These lease payments are structured to be lower than your utility savings, effectively allowing you to purchase solar while staying cash flow positive.   Through our multiple finance partners, SunGreen Systems can arrange for a lease on your behalf.

Power Purchase Agreements (PPA)
A Power Purchase Agreement, sometimes referred to as a “third-party” ownership model, is an alternative financing method in which you enter into a long-term contract, and a PPA provider installs, owns, and operates a solar power system at your facility.  You contract with the PPA provider to purchase electricity generated by the solar power system, typically at a rate 10-15% lower than your current average electricity rate.  While a PPA provides you the opportunity to install solar power at your facility without paying upfront costs or worrying about system operation and maintenance, the length of the PPA is long, typically 15 to 20 years.

So, bottom line:

Both leases and PPAs allow you to enjoy predictable, pre-determined electricity rates along with the renewable energy generated from your solar system, without the upfront cost.  The best option depends on your company’s goals, your investment criteria, and the strength of your company’s financials.  Our team at SunGreen Systems can help you to understand the various financing tools available and secure financing that fits your needs.