The solar power industry is growing fast fueled by drops in manufacturing costs for PVC technology. Solar installation costs fell by 70% in only ten years.
In 2010 the average cost of a residential solar installation was $40,000 compared to just $18,000 in 2020. Solar is no longer only about saving the environment but these days solar power is about making the best financial decision for your business.
Is your company considering installing solar for all or part of your business’s electricity needs? What are the options when it comes to commercial solar financing? Keep reading for 5 things to know when looking for funding for your solar power system.
Commercial Solar Financing
Rooftop solar for residential and commercial electric power needs of businesses have gained popular public support. Two-thirds of Americans support mandates for solar power. Some states, including California, have already passed the legislature requiring new homes to be built with rooftop solar.
Solar power has many advantages including saving money on utility costs, but you already knew that. So, when you have decided solar panel financing is right for your business and ready to invest, keep these five things in mind:
1. Cash Purchase Benefits
Before you finance your solar project, you should know that paying cash upfront has its advantages. Paying cash avoids third-party expenses and high interest rates on loans.
Ownership immediately appreciates the commercial property value and your cash in hand makes it easier to negotiate for the best price available in today’s solar market.
2. You Can Lease to Own
Leasing to own a solar installation for your business minimizes investment risk while still provides your business with viable energy cost savings. In some cases, a lease agreement can be made where the business saves more on electricity than the monthly lease payments on the solar installation.
3. Solar Panel Loans are Available
Getting a loan for solar has never been easier and solar loan rates are down with the increased competition emerging in the industry. The California-based lender Loanpal has become the second-largest holder of solar loans in The United States.
4. Consider a Power Purchase Agreement
There is a way to cut out the upfront cost of installing solar while still reaping the benefits of green energy at a stable contracted cost. A power purchase agreement (PPA) is a contract between your business and a third-party solar energy broker.
Contracts are typically 15-20 years. Your business promises to pay for your electricity at an agreed-upon rate and the energy broker pays for the installation and maintenance of the solar system while maintaining ownership.
5. Using Sustainable Energy Boosts Public Image
It is easy to get lost in the projected figures and cost savings, but solar is not all about money. The world is warming up and ramping up its efforts to transition to sustainable energy solutions to run our modern economies. To be a part of this movement is to have your business on the right side of history. If you are interested in solar panels for your business but not sure where to start, feel free to read this guide on buying the best commercial solar panels.
Finance Solar Power
The world of commercial solar financing is a friendly place. There are many reasons why businesses should seriously consider solar. There are few reasons to delay including a lack of capital for the initial investment.
Consider all your options and choose the right path to solar for your business and for the future of our planet. Take a look at more articles on the site for more tech news and advice.
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