Solar Power Financing Options for Businesses
In Massachusetts and Rhode Island building owners have good options which meet a wide range of budgeting needs. These financing programs have been designed to accommodate the varying levels of tax liability and investment and reinvestment strategies typical of most businesses. See the Federal Tax Incentives to learn more about tax liability.
Whether a for profit business or a not for profit organization, cash flow is important. A solar energy system investment significantly saves energy expenditures for companies over decades. By offering more solar financing choices, there are more chances to satisfy most operating budgets.
Commercial Solar Loans
Because of the great solar savings track record, special lending programs have been developed. This expands the options a business can use beyond their existing lenders, and gives more choices to compare for the best payment and lifetime cost fit. These are designed to specifically meet unique business operating needs, and they offer features and terms especially tailored for the market.
Many loan packages offer no upfront payments. Most require no security beyond the solar power system itself.
Southern Light Solar offers financing options through one such lender, Bluewave Solar, among others. Bluewave Solar offers packages that may require zero upfront payments, no payments until your system is operational, and flexible loan interest rates. Very low introductory interest packages available and terms for as long as 15 or 20 years, as well.
Buying & Owning a Solar Energy System
A cash purchase of a solar energy system delivers the largest and most consistent savings over time. A well-sized system can offset most or all of your electricity needs on average over a 12 month billing period. Your savings in the first month and throughout the nearly 30 year lifetime will be steady, and your utility energy purchases will be minimum.
A solar loan offers the business the option to spread out the costs over a longer period of time., while maintaining full ownership. Increasingly more lenders are participating, and Southern Light Solar partners with the most reputable and knowledgeable of those financial lenders aiming to business go solar. All are designed so that once the loan is fulfilled, the savings profile reverts to the same one enjoyed by making a cash purchase.
Leasing Options for Sure Business Cash Flow
Some companies may not have sufficient tax liability to take full advantage of incentives. Others may not find that a solar energy system purchase will fit their short term budget or long term investment strategy. There is good news:
Commercial solar leasing options assure the buyer of predictable savings without the same financial commitment as a purchase.
There are a couple of options available to compare and that will meet most every need:
Programs that free up 100% of your cash for business needs while reducing your monthly power payments.
- Operating Leases: These are the most basic and simply lease. It provides you with a predictable monthly payment over the life of the lease, with escalators spelled out if they apply. The sum of lease payments and any needed utility purchases are designed to make for an attractive savings alternative. A third party owns and maintains the system, taking the incentives as part of the payment.
- Capital Leases: allow an organization the ability to take advantage of incentives, while still locking in fixed and predictable monthly payments.
Power Purchase Agreements (PPA) – a Southern Light Solar financial agreement where we manage the design, permitting, financing and installation of a solar energy system on a business’ property at little or no cost. You agree to purchase the power directly at a discounted rate (cost per kWh), in a program designed to reduce your monthly payments a specified amount and targeted to be well below your current costs per kWh).
More About Solar Loans
Businesses and organizations often have their own credit partners and portfolios. Some are secured while others are unsecured. Increasing banking institutions are accepting solar power additions as safe investments, similar to other facility improvements and business expansions.
A Final Word on Solar Loans
Rhode Island’s solar incentives are nation leading. Combining these with a broad selection of loan options gives a local solar buyer plenty of options for significant savings. The value of the incentives means that business may be able to select financing for longer terms and for greater amounts without compromising the ability to recover their costs and continue big energy savings in significantly less than 10 years.