Capital Lease or Long-Term Loans: Borrow the Capital,
Own the System, Use the Energy
·
Like a bank loan or mortgage, but pay no
upfront costs
·
Customer owns and maintains the system
·
Owner uses the financial benefits of solar
(state and federal tax credits, local incentives, and avoided energy costs) to
pay down cost of system
·
Stay cash-flow positive through the life of
the system
Operating Lease: Lease the System, Use the Energy
·
Third-party financier owns the system and
takes advantage of the federal tax savings while leasing the system to the
property owner
·
Monthly lease payments to financier are
reduced through energy savings
·
At the end of the lease (~7-10 years)
property owner can purchase the system at Fair Market Value (FMV), which is
estimated to be 20% of the original system cost, renew the lease, or return the
system to the bank
Power Purchase Agreement: Buy the Energy
·
Third-party financier owns and maintains the
system on your property
·
Power produced is fed back into the
customer’s electrical service to offset the utility bills
·
Rate is pre-negotiated, so you know how much
you will be paying over the lifetime of the agreement (~15-25 years)
Solar Services Agreement (SSA): Fixed payments based
on monthly solar PV production, true up at the end of the year
·
Financial arrangement in which a third-party
developer owns, operates, and maintains the photovoltaic (PV) system, and a
host customer agrees to site the system on its roof or elsewhere on its
property and purchases the system's electric output from the solar services
provider for a predetermined period.
· This financial arrangement