Solar projects, while capable of delivering a high level of value to the client, are capital intensive. Recognizing that, Solis Partners has the ability to assist in tailoring a financial package to your specific situation.
The selection of the appropriate financing vehicle is largely determined by two factors – whether your organization can monetize the tax benefits (Investment Tax Credit and depreciation) and whether you wish to deploy your own capital.
Solis Partners can facilitate the following financing programs:
Capital Lease or Loan
In a Capital Lease or Loan, you have the ability to monetize the tax benefits and are looking to own the system.
Monthly payments for an Operating Lease are very low and the combination of SREC income and avoided electricity costs typically make an Operating Lease very much cash flow positive.
Power Purchase Agreement (PPA)
A PPA is a financial vehicle whereby a 3rd party owns the system on your premises and sells you the electricity generated at a discount from what you currently pay to the utility or other supplier. PPAs are long-term supply contracts. A key benefit of a PPA is that you don’t have any out of pocket costs for construction, operations or maintenance…you simply pay less for your electricity.
It is important to note that, regardless of the financing method chosen, you will be enjoying the benefits of hedging your electricity costs over the long term.
A key component of financing solar is the management of the state incentives – the SRECs. In order to maximize the value of your investment in solar, it is essential to ensure you’re getting all you can from the available state incentives. In New Jersey, that means SRECs. SRECs are a true market commodity, and as we’ve all seen over the past few years, their value can fluctuate greatly.
At Solis Partners, we believe our clients are best served by proactively contracting for the sale of their SRECs to creditworthy counterparties. We can bring our network of SREC brokers to bear for you as well as help you navigate through the available utility SREC financing programs.