Solar Finance Options
There is a broad range of options for solar installation financing with no upfront cost or minimal capital outlay. Business, utility and governmental customers can still choose a capital purchase or finance solar installations with low-interest loans, but today’s most common solar finance methods are through third-party solar power purchase agreements (PPAs) and solar energy leases.
Solar Power Purchase Agreements (Solar PPAs)
A solar PPA may be attractive to businesses that want to avoid the upfront cost of solar and operations while still reducing their utility costs. These long-term agreements can vary, but in general, a solar PPA locks in a solar electric rate that is lower than the current rate offered by your utility. The solar PPA finance company assumes the risks and responsibilities of ownership, construction and on-site maintenance of the power plant. As the legal system owner, it also receives any solar subsidies and tax benefits, reducing its upfront costs and risks. Overall, solar PPAs are a win/win for the business and the solar PPA provider.
Solar leases are similar to solar PPAs, but vary slightly due to local laws and utility regulations. But like solar PPAs, your business can install a solar system with no or minimal upfront cost and pay a set monthly rate that is lower than your monthly utility.
Inovateus works with several finance partners that can help determine which financing package best fits the customer and the project. The continuing decline in the cost of solar installations, combined with the right incentive and finance package, makes the solar value proposition more attractive than ever, with investments paying low-double-digit returns after a few years of operation.
Contact Inovateus about these and other solar project financing options.