Financing Options For Commercial Solar Installations
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.
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.