Solar Power Financing
SPG Solar has many financing options and provides custom financial solutions for converting to solar energy. Our goal is to understand your business operations to help implement a tailored financial package that will make it simple for you to convert to solar energy and achieve energy independence.
For many businesses with a large tax liability, purchasing a solar system outright can yield the highest return on investment. This allows the business to take advantage of the generous rebates and tax benefits available for installing solar. Depending on your location these may include an upfront or performance based cash rebate, a 30% Federal tax credit, and an accelerated depreciation schedule. To increase your return on investment our specialists will work with you to provide customized return on investment analysis and cash flow summaries.
For business’ wishing to capture the benefits of solar energy without the large capital outlay there are a number of financing options available. These include:
Power Purchase Agreement (PPA)
Power Purchase Agreements are financial vehicles that enable customers to take advantage of the benefits of a solar energy source with no capital outlay. A third party financial institution will own, operate, and maintain the solar power system for terms of 15-25 years. Customers buy power at an agreed upon, long-term fixed rate at, or below, market rates. SPG Solar works with the leading PPA providers in the industry to ensure each of our customers has the most competitive financing options for their solar project.
Lease With Buy-Out Options
An energy lease agreement is structured so that payments are lower than previous electric utility payments in the beginning. The payments are escalated at or below the current utility escalation so that electricity payments continue to be lower than current utility payments over the life of the system.
You own the solar power system after the lease term (typically 10 years) with a pre-negotiated buy-out payment. Because solar PV modules come with a 20-25 year manufacturer’s warranty with a 40+ year anticipated operating life, these systems will deliver energy savings for years to come.
Benefits of a financed solar solution include:
No Upfront Capital Funds
SPG Solar will prepare a flexible financial package designed to meet your specific goals and needs. Utilizing capital equipment leases or customized power purchase agreements (PPAs) – in combination with rebates, tax credits and accelerated depreciation – we can structure a 100% financed solution and create positive cash flow from day one.
Utilize Government Rebates and Tax Credits
Rebates, tax credits, grants, and other financial incentives can pay for up to 70% of the cost of a new solar system. Contact an SPG Solar Senior Account Executive to learn more about the incentives available in your area.
Lower Operating Costs and Hedge Against Rising Utility Rates
Electricity gets more expensive each year. Over the last 30 years, electricity rates have risen by more than 6% per year. By installing a solar system today you are insulating your company from unknown energy price increases over the life of the system by purchasing the power at a pre-determined rate. These costs are usually much lower than utility rates so budgeting for energy payments is simplified.
Long Term Reliability
Solar photovoltaic systems require little to no maintenance and solar modules carry a 20-25 year manufacturer warranty. Once installed, the solar system can generate power for up to 40+ years. Some of the first solar panels were designed in the late 1950s for applications in space programs. In the 1960s and 1970s the first commercially available solar photovoltaic panels were installed, many of which are still in use today. Once installed, solar power systems require little or no maintenance and will provide electricity cleanly and quietly for 40+ years.
Support Clean, Renewable Energy
An average solar PV system saves tons of carbon dioxide over its 40+ year lifespan, equivalent to removing hundreds of cars from the road. It takes the planting of thousands of new trees to absorb that much carbon dioxide produced by traditional fossil fuel sources. Solar power is one of the few distributed generation options for businesses to take advantage of that do not emit any pollutants into the atmosphere and can directly reduce a company’s carbon footprint.
Become a Green Business
Generating electricity from solar power means creating clean and quiet power with none of the greenhouse gas emissions produced by many of the standard fuel sources utilities rely on. Incorporating solar into your company’s energy mix will directly help combat global warming. In addition to producing clean energy and stabilizing energy costs, solar power can be a great source of pride for employees and an excellent public relations and marketing tool. With the growing trend of corporate responsibility and environmental stewardship, many consumers are now incorporating green practices into their purchasing decisions.