Financing Options For Commercial Solar Installations

Commercial Solar Financing Solutions

for Businesses Nationwide

The skilled and dedicated team at Solar Group is committed to bringing affordable solar solutions to commercial customers and revolutionizing the energy industry. With over a decade in the industry, we have been a part of the growth and acceptance of solar energy as a viable solution for commercial customers. Our goal now is to help more businesses go green by harnessing the power of the sun using the best financing process for each customer and their bottom line. We understand that there is an initial investment that prevents many from going solar. However, we also know that there are many viable options to allow these businesses to take control of the energy they are consuming and the cost that could be critical to the survival of their business in the future.

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Loans, Leases, And Tools To Finance Commercial Solar

Of course, when cost is not a concern, a business can easily purchase a solar energy system and have it installed to begin taking advantage of the power provided by the sun. However, most businesses are not capable of that initial cash outlay. Fortunately, there are many forward-thinking options to get solar energy systems installed in commercial settings:

Solar Loans: Using a solar loan, the initial investment for the system is decreased substantially. The cost of the system is spread over the term of the loan, which can range from 5 to 30 years. While there is interest on the solar loan principle, buyers can take advantage of the solar Investment Tax Credit to claim 30% of the cost of the system on their federal income tax. This one-time credit can offer a great deal of help going solar. Various other loan terms are presented, and each business team can evaluate the choices and select the terms that best meet their needs, such as a variable or fixed interest rate, secured loan, or re-amortized loan.
Commercial Solar Lease: IN a solar lease, there is a third-party owner of the equipment. They install the system on your property at no cost to you. The owner maintains ownership of the components while you pay a monthly lease for them, much like leasing a vehicle. At the end of the lease term, there are typically buyout options that are at a reduced cost., The owner of the solar equipment benefits from the tax breaks, but the commercial property owner is not responsible for the cost or hassle of the care and maintenance of the components. They only pay the monthly lease fee.
Power Purchase Agreements: A third party owns the solar system, so the commercial business owner does not pay for the equipment or installation. The equipment owner or developer, as they are called, then sells the solar power to the commercial business at a reduced rate for the lease term, which is often 10 to 25 years. The savings for the business purchasing solar are estimated to be from 10 to 30% of its annual energy cost while taking a step to protect the planet and future generations.
Commercial Property Assessed Clean Energy: This program provides more affordable long-term financing for green projects, including solar energy systems. It is offered in over 30 states, and lenders provide fixed-rate loans for up to 30 years with no upfront charges or fees.

To learn more about the tools and programs available in your area to transition to solar energy at your commercial property, please get in touch with the exceptional team at Solar Group. We are excited to share this information and the benefit of our more than 10 years in the industry with environmentally conscious business owners and management teams who understand the benefits and need to harness the power of the sun.

Frequently Asked Questions About Financing Commercial Solar Installations

1. What is the most common financing option for commercial solar projects?

The most popular option is a solar loan. It allows businesses to spread the cost of a solar system over several years, making it more affordable upfront. Many companies choose this route because it provides ownership benefits, such as eligibility for the Federal Solar Investment Tax Credit (ITC), which can cover 30% of the system cost.

2. How does a solar lease work for commercial properties?

In a commercial solar lease, a third party owns the system and installs it on your property at no upfront cost. Your business pays a fixed monthly fee to use the system, similar to leasing a vehicle. The leasing company handles maintenance, and at the end of the term, you may have the option to purchase the system at a reduced price.

3. What is a Power Purchase Agreement (PPA) and how can it benefit my business?

A PPA allows a third party to own and maintain the solar system while you agree to purchase the electricity it produces at a lower rate than your current utility price. This can result in immediate savings on your energy bill without any upfront investment. PPAs typically run 10 to 25 years, locking in predictable energy costs for the long term.

4. Are there financing options that require no upfront costs?

Yes. Both PPAs and solar leases require no upfront payment for equipment or installation. Additionally, Commercial Property Assessed Clean Energy (C-PACE) financing is available in many states, providing long-term, fixed-rate financing that is repaid through property tax assessments.

5. Can my business still qualify for tax incentives if I finance my system?

If your business owns the solar system through a loan or outright purchase, you can take advantage of federal, state, and local incentives, including the ITC and potential depreciation benefits. However, with a lease or PPA, the system owner (the third party) receives these incentives instead.

6. How does C-PACE financing work for solar projects?

C-PACE allows property owners to finance solar installations through a special property tax assessment. The repayment term can extend up to 30 years, with fixed interest rates and no upfront charges. This option is ideal for businesses looking for low monthly payments and the ability to pass financing costs along to future property owners.

7. Which financing option provides the fastest return on investment (ROI)?

If your business can afford some upfront cost or handle loan payments, ownership through a loan typically offers the fastest ROI due to tax credits, energy savings, and depreciation benefits. PPAs and leases provide instant savings without ownership responsibilities but may yield smaller long-term returns.

8. How do I decide which financing option is right for my commercial property?

The best choice depends on your business’s cash flow, tax situation, energy usage, and long-term goals. A solar loan may be ideal for those wanting ownership benefits, while a PPA or lease is better for those prioritizing immediate cost reduction without upfront investment.

9. Are solar financing options available nationwide?

Most financing programs, including loans, leases, and PPAs, are available across the United States, though state-specific incentives and regulations vary. C-PACE is available in over 30 states, and availability is expanding.

10. How can The Solar Group help my business secure financing?

Our team has over a decade of experience helping commercial clients secure the best financing for their unique needs. We handle everything from assessing your property’s solar potential to matching you with competitive financing options, ensuring your project is affordable and profitable from day one.