Solar Financing
Financing Your Solar Transition: Options and Advantages
Unlock Zero-Upfront-Cost Energy Savings with Power Purchase Agreements (PPAs) and Comprehensive Financing.
Investing in a commercial or industrial solar system is a significant decision that promises decades of energy savings and reliable power. To make this transition accessible and financially rewarding, we offer a range of flexible financing solutions. Power Purchase Agreement (PPA) is a popular option that allows organizations to utilize solar power immediately without any upfront capital investment, making the savings immediate and the switch seamless.
Why is financing important?
Financing options remove the two biggest barriers to solar adoption: high initial cost and risk.
- Zero Upfront Capital: Financing, particularly a PPA, converts a large capital expenditure into a simple, predictable operating expense.
- Predictable Budgeting: It locks in a long-term, fixed, or low-escalating rate for electricity, shielding your business from volatile utility rate hikes for 15-25 years.
- Immediate Savings: Because there's no initial cost, the savings start on day one, as the price you pay for PPA solar electricity is typically lower than your current utility rate.
- Tax Credit Monetization: Solutions like PPAs allow the solar provider to own the asset and monetize the federal Investment Tax Credit (ITC), passing the savings on to you via a lower electricity rate.
What does the customer need to know/want to know?
| Financing Option | Key Information |
|---|---|
| Power Purchase Agreement (PPA) | Zero down, fixed rate per kilowatt-hour (kWh) for the solar electricity produced. The provider owns, installs, and maintains the system. You only pay for the power. |
| Solar Lease | Fixed monthly payment for the use of the system. Ownership remains with the provider, and payments may be structured to be lower than the expected monthly utility savings. |
| Direct Purchase (Cash/Loan) | The customer owns the system outright, taking full advantage of the Investment Tax Credit (ITC) and accelerated depreciation benefits. Ideal for organizations with sufficient tax appetite. |
| Site Lease | The customer receives a lease payment for providing a location for solar panels to be sited. This is often a good choice for non-owner-occupied buildings such as malls, commercial real estate and industrial parks. There is no upfront cost and a new revenue stream for the property owner. Many of our clients look at this as a new revenue stream that increases Net Operating Income (NOI) and adds value to a potential future sale of the property. |
| Property Assessed Clean Energy (PACE) | This special funding mechanism for property owners to finance energy efficiency, water conservation, and renewable energy upgrades with little to no upfront cost. Instead of a traditional loan, the repayment is secured by the property and collected as a voluntary special assessment on the owner's regular property tax bill over a long term, often 10 to 30 years. This structure means the financing obligation generally transfers to a new owner if the property is sold and the assessment often takes priority over a mortgage, which is a key characteristic of PACE. Often the PACE financing can marry multiple infrastructure projects together such as a new roof and solar at the same time. |
| Commercial Loan | Traditional financing is used to fund the purchase. Allows the customer to retain full ownership and all associated tax benefits immediately. |
How is this helpful?
PurePoint Energy (PPE) doesn't just present options; we structure the deal that best fits your financial profile and goals:
- Financial Expertise: We evaluate your tax position, cash flow goals, and energy consumption profile to recommend the most financially beneficial mechanism—be it CapEx, OpEx, or hybrid financing.
- Risk Transfer: With a PPA, we take on 100% of the risk related to system performance, maintenance, and insurance. If the system doesn't produce, you don't pay for that energy.
- Simplified Adoption: We handle all contract negotiations, installation, monitoring, and long-term maintenance, ensuring your team can remain focused on core business operations.
Next Steps
Ready to see how much you can save without spending a dollar up front?
Contact one of our Connecticut, Rhode Island, and Westchester County solar company experts today! We can offer you a free estimate to learn more about your solar financing options.
