Lowest Cost Solar Financing

Financing a solar system can be a challenge since end-users and developers strive to match finance payments to energy savings within a specific term of the loan. For certain projects, an Operating Lease or Tax Lease may be the best solution. The end-user doesn’t get to keep the tax credit or depreciation but they do get the lowest rate and payments of any loan structure available. Here are some of the parameters.

Project type: Solar Systems only

Client type: For-profit commercial entities only

Lease type: Operating Lease / Lender keeps 30% tax credit and depreciation

Buyout: 20% or fair market value buyout at end of term

Term: 7 years maximum with 1 additional year option to pay for buyout

Minimum project size: $100,000

Area available: Continental U.S.A.

Rate: Stream rate interest can range from 2% to -10%

Credit conditions: Both customer and developer must be “A to B+” credit rating

EXAMPLE: $500K size project at 7 years would cost $6,383 per month (2% rate) or $4,959 per month (-5% rate) or $4,086 per month (-10% rate). The exact rate will depend on the credit of the end-user.

This program is for companies that are well established but do not have use of the tax credit themselves and are interested in the lowest cost method to get their solar project financed.