Commercial solar power is quickly becoming a more popular choice for businesses, and it’s easy to see why. Not only does it give you the freedom to generate your own power and reduce your operating costs, but it also helps you take advantage of federal incentives like the Investment Tax Credit (ITC) that help offset the cost of your system.
What is Solar Financing?
Solar power is growing in popularity every day as an environmentally friendly and affordable energy source. In fact, a recent study by the Pew Charitable Trusts found that solar power is now the cheapest form of new electricity generation in many parts of the United States.
However, not everyone can install solar panels on their roof, so there are other ways to get solar power into your commercial building. One option is to lease or buy solar energy credits (SACs). SACs are certificates that represent a certain amount of solar energy generated. You can use them to offset your electricity bill or invest them in a solar project.
Another way to get solar power into your commercial building is through Solar leasing or buying agreements (SLAs). With an SLA, you agree to purchase a fixed number of kilowatt hours (kWh) of solar power each month at a set price. This can be a good way to save money if you’re not sure how much solar power you need or don’t want to commit to installing panels yourself.
Whatever route you choose, make sure you have all the paperwork ready and know your rights and obligations before signing anything. There are some big financial benefits to getting started with solar energy – so don’t wait!
The Benefits of Commercial Solar Financing
Commercial solar installations can provide a number of benefits for businesses, including:
- Reduced Energy Costs: Commercial solar installations can help reduce energy costs for businesses by providing clean, renewable energy.
- Improved Environmental Footprint: Commercial solar installations can help improve the environmental footprint of businesses by reducing reliance on fossil fuels.
- Increased ROI: A commercial solar installation can provide a high return on investment for businesses, due to the reduced energy costs and improved environmental profile.
- Increased Awareness and Conservation: Commercial solar installations can help increase awareness and conservation of energy resources, which can lead to more sustainable practices in the future.
Types of Residential Solar Loans
Solar energy is one of the cleanest and most renewable forms of energy. It has been proven to be a reliable, affordable and sustainable source of power, and it can help reduce your carbon footprint.
There are a few different types of residential solar loans you can get to install solar panels on your home or business.
1) Private financing: This is where you borrow money from a private lender who will then lend you the money to pay for the entire cost of the solar installation. The interest rate on this type of loan can be high, but it’s usually easy to get approved since lenders want to make sure that their money is going towards a high-yield investment.
2) Government assistance: Some states offer tax credits or other incentives that can lower the cost of installing solar panels. In some cases, local governments also offer grants or low-interest loans for residential solar installations.
3) Solar lease: A solar lease lets you borrow money from an investor or credit union and pay them back over time with monthly payments based on how much electricity you produce from your solar panel system. This type of loan has lower interest rates than either private financing or government assistance, but it’s more complex to get approved since you don’t own the system after it’s installed.
How Commercial Solar Financing Works
Commercial solar financing can be a great option for businesses of all sizes. Depending on the type of solar system and the terms of the loan, commercial loans can range in size from $10,000 to several million dollars.
The most important factor when choosing commercial solar financing is the size and layout of the system. Systems that are large and require a lot of roof space may be more expensive to finance than smaller systems that can be installed on a smaller, less-expensive site.
Another important factor to consider is whether or not you will need to use a PPA (power purchase agreement). A PPA allows you to lock in your electricity rate for 25 or 30 years, which can save you money on your monthly bill.
To find out more about commercial solar financing options, contact an experienced financial adviser via axximumfunding.com
If you’re looking to finance your commercial building, there are a few different solar financing solutions available to you. Depending on the size of your project and the terms of your loan, you may be able to get a loan that is fully or partially funded by solar power. It’s important to do your research so that you can find the best option for your needs and situation. Ready to begin the process? Check out our list of top solar financing providers