Contractors should take full advantage of financing tools as much as possible. Solar financing solutions have one main purpose: to assist solar contractors in obtaining the financial resources they need to finish additional projects.
A qualified solar installation company will be able to design almost any financing model that works best for your business and clean energy goals, so read on and start learning about what option, or combination of options, might work for your organization. Commercial solar financing companies that offer flexible terms and longer amortizations.
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1. Money and Credit
Where possible and makes sense to the owner, cash is usually the best financing option for companies looking to take advantage of federal and state diesel subsidies and accelerated depreciation.
This year ITC was at 26% before dropping to 22% in 2021 and then remaining steady at 10% for commercial solar projects from 2022 onwards. So if you want to get the fastest and highest return on your commercial solar investment, now is the time to act.
2. Non-profit Lease
Leasing usually offers a higher monthly rate and does not immediately become ownership. At the end of the lease, you usually have the opportunity to negotiate a purchase.
Buying a lease usually has a lower cost than buying a PPA(Power Purchase Agreement), which is another added benefit of leasing if you go this commercial route of solar financing. There are several leasing programs available to tax-paying nonprofits.