we help you keep it simple: COMMERCIAL SOLAR INCENTIVES

We have found that the best way to compare owning against financing or leasing a solar power system is to use the:

Total Value of Payments Method

This approach takes into account the 25 years warranty period or even longer expected lifespan of solar panels. Here are the simple steps to compare your options.

Current Electricity Costs

Start with an estimate of your current electric utility costs for 25 years. Use your average monthly electric bill and remember to add annual price inflation. The national average inflation rate for electricity is 4%, but it can be higher in some locations.

Solar Costs

Next, use a cash payment estimate for the equipment and installation cost. This is the costs if you buy the system with cash. Be sure to deduct rebates and tax credits that will reduce the expense for a total net cost to you.

Total Payments Cost

Now calculate the total value of monthly payments for a loan, lease, PPA or other financing program over the entire contract term, often 10, 15 or even 20 years. If the program has a residual value buy-out or "rate escalator", be sure to include this in your payment calculation. Don't forget the possible complications should you choose to sell your home.

 
Compare Owning vs Financing

Last, compare the difference in totals for the three steps: 

1) 25 years cost of paying the utility,

2) the 100% cash cost, and 

3) total payments with a loan, lease or PPA.

You should find that buying the system with cash will provide the greatest long-term savings. The next best option is to finance using a simple loan that includes the benefits of ownership. The last option would be to lease or not have ownership of the system, primarily because your monthly savings are smaller, and you will not receive rebates or tax credits.

We work with you to get all the incentives in your city, state, and federal agencies plus solar financing options.

https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses

https://www.energy.gov/eere/funding/eere-funding-opportunities

https://www.energy.gov/eere/solar/federal-solar-tax-credits-businesses