Solar Financing for Commercial and Industrial Solar Projects 0

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For commercial and industrial solar contractors, solar financing is indeed a valuable resource that they can take advantage of. Commercial and industrial solar projects are more complex compared to residential projects due to their capacity size as well as their great number of stakeholders. In this type of solar project, many things should be taken into consideration, and one of the major factors to focus on is the finances. 

The bigger the commercial/industrial project is the greater the monetary value but it also entails huge finances. That’s where solar financing options come in. Through solar financing options, contractors of commercial and industrial solar projects will be provided with enough financial assistance to complete the project within its time frame. 

For today’s article, we are going to tackle the different solar financing options for commercial and industrial solar projects as well as the top financing companies offering the financing services.

What are Commercial and Industrial Solar Projects?

From the word itself, commercial and industrial or C&I solar projects refer to any solar power system installation with a larger capacity size compared to residential projects. Typically, the average size of a residential solar project is ranging from 7 to 8 kilowatts (kW), whereas a C&I solar energy project can reach up to several megawatts (MW) of solar capacity. The size of the solar power system for these types of projects depends on the electricity needs of the company or facility. 

Commercial and Industrial Solar Financing Options

Same with residential solar projects, commercial and industrial projects can also take advantage of multiple solar incentives and rebates. That also includes solar financing services, which are also available in three options that are all suited to all C&I projects. 

The three most common alternative solar financing options for commercial & industrial projects are solar loans, leases, and PPAs. All of these options carry their perks and drawbacks, whichever your choice is, solar financing can help you and your stakeholders with financing concerns. 

Solar Loan 

Same with other loans, a solar loan provides commercial & industrial solar installers with finances to purchase an entire solar power system. The client will only need to pay monthly payments as well as the loan interest. Loan interest rates vary differently depending on some factors such as the cost of the entire solar power system, the loan term length, credit standing of your company and the number of years that the business has been installing solar.

Solar Lease

Typically, a solar lease offers solar equipment to contractors with no upfront cost on the project. However, it has a higher monthly payment and the contractors are not held into immediate ownership of the equipment. At the end of the lease, term contractors can negotiate to buy the equipment or not. Compared to buying PPA, buying out a lease has lower charges.

Solar Power Purchase Agreement (PPA)

PPA allows commercial businesses and other industrial institutions to purchase solar equipment from a host organization that provides a huge portion of unused land or field for the deployment of solar panels. This solar finance option has been used by multiple utilities and businesses to finance the purchase of electrical generating facilities. 

Solar Financing Companies for C&I Solar Projects

DSD

Solar Financing Options: Solar loan, Lease, PPA

DSD is established as a startup under the General Electric (GE) company. Since 2012, the company has been committed to increasing the potential and growth of solar energy by financing various commercial businesses and industrial utilities solar projects across the state.

There is no project too complicated.

DSD’s dedicated and professional team manages all the solar installation processes from planning and zoning, to designing and engineering, to installation and even the maintenance of solar PV systems. They offer varying amounts of financial assistance to support solar contractors and installers improve their solar projects.

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Jua Capital

Solar Financing Options: Solar loan, PPA

Jua Capital is established to provide financial solutions to commercial, industrial and other utilities that install large-scale solar power systems. They walk you through your solar project feasibility and provide consultations about budgeting and financing working. They also have a wide network of trusted commercial solar and clean energy installers so you’ll no longer provide your own installer. 

New Resource Solutions

Solar Financing Options: Solar Lease, PPA

New Resource Solutions was established in 2016 by solar veterans frustrated with the dedication to accelerating finances to clean energy projects. Through their passion and dedication, solar contractors, developers, commercial and EPC companies can efficiently develop solar projects and support their finances, while solar investors gain a trusted partner leading them to the evaluation of a more efficient project and acquire projects within these rapid changes in the clean energy niche.

Sustainable Capital Finance (SCF)

Solar Financing Options: PPA

Sustainable Capital Finance (SCF) provides power purchase agreement (PPA) & effective financing solutions for qualified commercial businesses, industrial, municipal, private and public utilities and other non-profit solar projects. Generally, they mainly focused on assisting solar projects as small as 100kW to as large as 20MW.

They have an in-house expert team specializing in structured finance, solar diligence and solar development. With the long years in the industry, SCF managed to create a vast network of EPCs and Developers across the US that submit project development opportunities through SCF’s cloud-based platform the “SCF Suite.

Duke Energy Sustainable Solutions

Solar Financing Options: Solar loans, PPAs

Duke Energy Sustainable Solutions offers a wide array of solar energy financing options from cash loans to solar PPAs available to both short and long-term contracts. For more than 20 years, they have helped multiple commercial businesses and industrial utilities complete their solar projects by providing effective financing solutions and other sustainable energy consultations. They offer Solar Power Agreements (PPA), Virtual Power Purchase Agreements and Renewable Energy Credit/Certificates (RECs) services and other solar rebates.

Key Takeaways

Almost every year many commercial businesses and industrial facilities are investing in solar energy. Investing in solar energy is one of the best environmentally-smart decisions you can make but for larger-scale solar projects, it could be financially draining as well for it requires a hefty amount of dollars. If you are planning to install a solar power system in your commercial business and other facilities but can’t shoulder the upfront costs of it all at once, then a solar financing company can help you. 

Unlike before when you have to directly pay your system in cash, you can now choose from the three common solar financing options. Once you’re qualified you can take advantage of its perks while avoiding the upfront expenses of installing a large capacity solar system. 

You can choose from the above-mentioned solar financing companies. All of them offer either of the three options: solar loans, solar lease and PPAs.

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