Solar Panel Purchasing Options For Your Company

This article will serve as your compact & delicious guide to commercial solar loans, leases & P.P.A's. You’re busy managing your company. Although you’re taken with the idea of going solar, you have little time to think out all the pros and cons of commercial solar loans vs. leases vs. purchase agreements.  Well, maybe we can help.

All three of the following options will help you to: Lower your electricity bill, guarantee your solar panels’ production for 20-25 years, and show proposed customers your dedication to improving the environment.  

OPTION 1: SOLAR PANEL PURCHASE AND LOANS

Buying solar panels saves many of us a lot of money in the long run, but usually at the highest up-front cost, though, as of 2018, it’s more affordable than you might think. Several jaw-droppingly substantial federal and state rebates cut the initial price, and low-interest solar loans available to many Missouri businesses expect you won’t need much capital. (Check out our resource-filled guide to these programs here.)

Pros:

A whole lot of cost-effective long-term things come from solar. You get free electricity from the first day and can ordinarily “sell” the extra to your utility via net metering. Lowest plausible price, thanks to significant federal and state solar benefits including interest programs, REAP grants, PACE financing, and a 30% federal tax credit. Only some up-front cash required, thanks to the above incentives. (Irregularly, businesses can claim so many rebates and grants that they don’t even need a down payment!)

Cons:

Various funding programs may want your business to have at least some cash for a down payment. You will be responsible for sustaining (Granted, solar requires very minimum maintenance, and HahaSmart panels come with a 25-year warranty with extended warranties possible!)

OPTION 2: COMMERCIAL SOLAR LEASES

Solar leases are similar to subscribing to iTunes. After your solar company installs solar panels on your building at no expense, your business “rents” the panels’ use at a fixed fee per month, resulting in decreased electricity rates for decades to come.

Pros:

No down amount needed and affordable monthly payments to help conserve on your electricity bills. Rate, including down payment, usually is less than your previous utility bill. Maintenance is the installer’s job, not yours. With some businesses leased systems, you can buy your solar system after five years, receiving its free electricity for 15-20 out of the system’s guaranteed 25 years

Cons:

If you buy your solar system via lease, you cannot claim the tax credit available to its original owner (but you still get lower monthly payments)

You won’t receive utterly free electricity until you’ve paid for the system.

OPTION 3: COMMERCIAL P.P.A.S

This option’s related to buying songs from iTunes. It’s often a cost-effective choice for large businesses, schools, and government departments.

Like a solar lease, a PPA allows you to have solar panels installed on your home at no expense, after which you make monthly payments to the installer for its power. However, unlike a solar lease, that monthly fee isn’t fixed; instead, you pay a fixed rate for each watt you use, just like you would a regular utility bill (except at a lower price than grid-carried electricity).

Pros:

No cash down.  Decreasing your business’s electricity use reduces your monthly payment. No need to pay for the solar system itself, everInstant savings on your electricity bill. Maintenance is the installer’s responsibility, not yours. Therefore, you get low-cost electricity without any added expense.

Cons:

If you require to use more electricity than usual, you’ll pay for it (unlike a solar lease). You’ll never have utterly free power unless you eventually buy the system. If you do choose to buy eventually, you can’t demand the tax credits possible to its original owner.

SUMMARY:

Each of these options offers essential financial benefits and, thanks to solar loans, grants and rebates, you don’t need as much money as most people think. Solar leases and P.P.A. adjustments give all companies, no matter how short on immediate funds, a cast to save money while helping to save our planet.  Solar helps us all win together.  

HahaSmart can help you company win with a great price on solar panels, and a great match with the lowest-cost local installer.  Get in contact today!

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