Long, Long, Longer Solar Finance Solutions
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May 23, 2018Solar financing requires a certain expertise and experience to get a project approved with all the benefits the energy user (offtaker) expects and deserves. Following is a summary of our longest solar finance programs along with standard shorter terms. Once we review a client’s financial status and approve, there are many options available depending on the type of entity they are and their specific goals. These programs are available throughout the entire U.S.A.
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PPA – Power Purchase Agreement
- Term: 20-25 years with option to renew or buyout
- Client Benefits: offtaker pays a lower fixed energy rate for many years
- Project Benefits: retained by lender
- Entity that Qualifies: For Profit, Non-Profit
- Requirement: 700kW project size and larger
Long Term Solar Operating Lease
- Term: 8-20 years with Fair Market Value buyout at the end
- Client Benefits: long term financing which is lower than utility costs
- Project Benefits: retained by lender
- 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
The key is confirming the client’s credit and project analytics; once that is done we can generate a letter of intent or preliminary proposal for review.