Does the lessee keep the ITC?
Yes and no. We have a couple of different options to choose from.
A. If the lessee would like to see additional savings, then the lender will retain the ITC credit and then the lender passes the savings into the stream of payments as an additional discount (custom pricing is needed for this option). The lessee must be a strong credit for this option and show positive net worth and cash flow.
B. If the lessee would like to keep the ITC, then the lessee can be quoted with rates from our premium rate factors. The end of term option for this premium rate factor program is a balloon payment of 20%, and the equipment lease agreement/ELA is used to complete this transaction.
Are non-profit & municipalities able to benefit from the ITC?
No. Non-profits and municipalities do not qualify because tax credits are used to offset net income profits and municipalities and non-profits don’t produce a profit.
Who retains the SREC’s (Solar Renewal Energy Credits):
The SREC’s flow to the lessee from their utility company.
Can I fund a new roof if needed?
No. 7 year solar lease with ITC and depreciation to the lender are only good for solar equipment installation.
What are the rate factors and maximum terms?
Amount of solar lease Maximum term Contact us for current rate factors
$50,000.00 to $99,999.99 60 Months
$100,000.00 to $299,999.99 84 Months
$300,000.00 to $499,999.99 84 Months
$500,000.00 or more 84 Months
Is TVSS/Surge protection required?
Yes. TVSS/Surge equipment protects the solar system investment and extends the operating life of the solar inverters.
Credit and solar vendor approval required for all leases.
Because of the special tax and depreciation credits, custom quotes are required for all leases.
If you have a major project of at least $1,000,000, we have other options available for regular commercial for-profits, non-profits, and government clients. Please contact us for more details and assistance.
Nothing contained on this web site guarantees any borrower funding. Consult with your tax professional for additional information about your specific situation. 3 years audited financial statements required for most leases.
Solar transactions have a much better chance of happening when the monthly payment roughly equals or is less than the monthly expense of paying the utility bill.
We offer an economical lease structure for general equipment, but now we can finance solar installation as well with even additional reductions to the monthly payment. As you probably know, the IRS offers a 26% ITC credit to the owner of new solar installation. Solar systems are also eligible for depreciation.
We can retain these credits and depreciation and pass it into the stream of payments as an additional discount. Often, the monthly payment is equal to or less than a much longer term lease or PPA payment. Most savings are realized AFTER a solar system is paid off, not before. Enjoy the advantages of paying off the lease in just 7 short years! Commercial solar systems installed today are expected to enjoy a 30 to 40+ year practical lifespan.
If you have a situation where this low payment structure suits you or your clients' needs, we are ready to help you! Leases can be turned around in as little as 1 week.
$2,320,000 total system cost
Lease factor .0077825 ($2,320,000 X .0077825 = $18,839 mo)
84 Months X $18,839 mo = $1,516,653 total of 84 lease payments
FMV (Fair Market Value) system buy out at end of lease
Keep any local incentives or rebates
Must have excellent credit
Must be a commercial business
3 Years audited financials and other information required for approval
Are there any fees?
Yes, there are bank documentation and processing fees collected along with the first payment. Fee estimates are as follows:
End of lease term (i.e. The greater of FMV or 15%)
*Different lease factors based on total lease amount. Contact us for details and the factor for your transaction.
Energy and Financial Consulting