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Commercial Solar Financing 2017-08-31T12:10:35+00:00

Commercial Financing Structures

PACE Model

commercial solar financing pace option
Property Assessed Clean Energy (PACE) is a means of financing energy efficiency upgrades or renewable energy installations for residential, commercial and industrial property owners.

  • Property Assessed Clean Energy (PACE) is a government financing policy that classifies energy-saving upgrades as a public benefit – like a sewer, road extension, solar PV system, etc.
  • Like other public benefits, PACE projects can be 100% funded by private capital and repaid via a surcharge on the property tax bill.
  • Payback periods match equipment life (often 20+ years) this makes most projects cash flow positive from day one.

Requirements

Commercial PPA Model

What is a PPA?

A power purchase agreement (PPA), or electricity power agreement, is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer).

Typical PPA terms: 10-20 year PPA with option of 5 year extension 0-3% Escalator associated with the contracted PPA rate

commercial solar financing ppa option
commercial solar financing used for barn

PPA Value Proposition

  • No upfront capital costs – FREE Solar PV
  • Predictable energy costs/ Hedge against rising utility costs
  • No system performance operating risks
  • Projects can be cash flow positive from day one
  • Visible demonstrable environmental commitment
  • Potential to make claims about being solar powered
  • Reduction in carbon footprint
  • Potential increase in property value
  • Support local economy and job creation

Commercial Ownership Model

Why Choose Ownership?

The ownership model is the most beneficial to commercial business owners considering to implement a solar PV system. Solar allows you to save a substantial amount of money while becoming energy efficient/ independent. There are 5 key revenue streams that allow an owner to recoup their original investment in MD/DC.

Learn More About Ownership

Financial Incentives

  • Federal ITC (30% Investment Tax Credit)
  • MACRS (Depreciation of system)
  • SREC’s (Solar Renewable Energy Credits)
  • Clean Electricity (Replaces what would be bought from a local utility)
  • State & Local Grants (Vary depending on system configuration & size)

Partners

Commercial solar partner solsystems
Commercial solar partner rec solar
Commercial solar partner sustainable capital finance
Commercial solar partner nrg
Commercial solar partner watthub
Commercial solar partner washington gas energy services
Commercial solar partner Constellation
Commercial solar partner skyview capital
Commercial solar partner Duke Energy
Commercial solar partner Wunder Capital