Solar energy is becoming an increasingly lucrative and beneficial investment for small and large businesses alike. Not only does solar help cut energy costs and come with a variety of incentives, but it also helps foster an eco-friendly company image. All around, solar energy can give your Northern Virginia, DC, or Maryland business a powerful boost.
If you are hesitant to make the switch to solar because you are unsure if your business or organization can afford it, there are a variety of financing options that can help you pay for your commercial solar panel installation. Below, we examine four different ways you can pay for your solar panel installation project.
Purchase Your Solar Panels
You can purchase your solar panels outright with cash, debit, or a loan. Purchasing your solar panel array in full will grant you ownership of your solar panel array. If you own your solar panel system, your business will be eligible for economic incentives, including the Federal Solar Tax Credit (ITC). Owning your solar panels will also allow for depreciation on an accelerated scale, which can grant you big savings. The downside to purchasing your solar panels is that it is a larger investment upfront if you pay with cash or debit. If you use a loan to purchase your solar panel array, you will need to face monthly payments and accruing interest.
Lease Your Solar Panels
Another method for paying for your solar panels is leasing them and paying a monthly fee. For companies such as small businesses who cannot pay as much upfront, this is an appealing option. Leasing will allow you to pay smaller monthly fees that may be more manageable for some businesses. With leasing, however, your business will not own the solar panels and will not be necessary for as many economic incentives like tax credits. If your equipment breaks, you will still have to pay for your solar system each month.
Power Purchase Agreements (PPA)
With a power purchase agreement (PPA), you pay for the energy you use, not the solar equipment. You will not owe any capital up front and do not have to worry about paying more per month for energy you are not even using. Paying only for energy you use is a great way to reduce your monthly utility bills, too. As with leasing, on the other hand, a PPA will not entitle you to tax credits and incentives. In addition, cash or debit usually earns the most savings in the long run, and PPA requires a longer commitment.
This option may be best if your company is a government agency or educational institution. If your organization meets the requirements, you may be eligible to receive bonds or grants to pay for your solar power. Public financing allows you to combine several financing options such as a variety of bonds and incentives in order to pay for your array. However, this has a downside, as you may have more difficulty finding enough public financing options to pay off your project, and it is much harder to manage and keep track of multiple bonds or grants.
Discuss Your Financing Options With Prospect Solar!
Prospect Solar provides commercial solar panel installation in Northern Virginia, DC, and Maryland. We can help you determine which financing option is best for your business so you can start earning the benefits of solar energy. Our team is dedicated to helping you understand how best to pay for your solar panel array and set you up with a system that will give you the greatest ROI.
To learn more about financing options, visit our Solar Economics page, and call us at (703) 444-2447 to get your commercial solar panel installation started!