Solar financing requires a certain expertise and experience to get a project’s financing approved with all the benefits the energy user (off taker) expects and deserves. Following is a summary of our longest solar finance programs along with standard shorter terms.

PPA – Power Purchase Agreement

  • Pay controlled rate 20 to 25 years with buyout option
  • Uses Investment Tax Credit and depreciation to lower rate (for profits and non-profits)
  • PPA rate often significantly discounted versus utility rates
  • Only pay for power used (with predetermined minimum)
  • No upfront capital costs
  • All install, hardware and maintenance costs included in PPA rate
  • Annual escalation usually less than utility rate
  • Entity that Qualifies: For Profit, Non-Profit
  • Requirement: 700kW project size and larger

Long Term Solar Operating Lease

  • Lender retains Investment Tax Credit, monetizes depreciation and reflects them in the payment stream as an additional discount thereby offering a negative interest rate
  • Fixed rental payments with fair market buyout at end of term (capped to avoid large balloon); 15% FMV for leases over $500,000
  • Sample lease factor of (0,1112) equates to a negative interest rate because of tax credits, sample payment: $100,000 lease = $1,112 per month or -1.95
  • Term: 8-20 years with Fair Market Value buyout at the end
  • Client Benefits: long term financing which is lower than utility costs
  • Entity that Qualifies: For Profit and Non-Profit entities
  • Requirement: 700kW project size and larger

Shorter Term Solar Capital Leases and Operating Leases

  • Term: 3-7 years with buyout ranging from zero to 20%
  • Client Benefits: shorter term financing which is lower than utility costs
  • Project Benefits: Capital Lease – client keeps benefits; Operating Lease – lender keeps benefits
  • Entity that Qualifies: For Profit or Non-Profit depending on finance structure
  • Requirement: $50,000 project size and larger

No upfront fees. We are paid when your loan is funded

To speak with a solar equipment lending expert, please call 609-417-9031, email or click the blue “Apply Now” button below.