We briefly discuss on our Financing Options page how businesses and organizations in Massachusetts and Rhode Island can finance a commercial solar energy system. Not surprisingly, we find this “4 Ways to Pay for Commercial Solar” graphic from our partner SunPower to be a good summary illustration about your choices. And this reminds us there is an opportunity explain further how you can think about your options.

In this first of a series about financing, we take a look at two of the best options for a profit-making and for a non-profit seeking relief from their respective energy costs.

Solar Power for Business

Purchasing your solar energy system outright with cash not only assures you get up and running earlier and start saving immediately, but it by far delivers the highest energy savings throughout the 25+ year system lifetime. To those who are able to make a full purchase, there are some key benefits:

You reduce your utility cost or eliminate it starting the very first month. There are no other payments to make for financing. You maintain one significantly reduced utility. Or none!

As noted on our Fundamentals of Savings page, you could be cash flow positive in as few as 3 to 5 years. You will have fully recovered the original cash and are now simply accuring money for every dollar not paid to your utility.

This means you OWN your energy source. You are essentially your own utility for the amount of energy your solar energy system produces. And the good news is after you pay your original investment back, you have no further fuel costs. The likely and predictable maintenance costs will be very small when amortized over the life.

You maximize the value of every incentive available. There is no sharing with any third party.

Solar Power for Non-Profit Organizations

A not-for-profit entity has unique financial challenges. Beyond having to routinely focus on and solicit funding, often there is a lot of financial oversight, too. Every penny spent is an important one.

Power Purchase Agreements (PPA) have become one of the preferred ways for you to reduce your energy costs while visibly showing your commitment to solar energy. A PPA allows you to pick your utility for the solar energy generated by choosing a third party owner for the system.

You avoid the need to budget or borrow precious funds.

Every cost is locked in with the contract. No surprise rate increases.

You ONLY pay for what is produced and you use.

SunPower has been leading the way in facilitating more non-profits to be commercial solar energy users. Here is an example of 10 Massachusetts schools going solar, thanks to the use of PPAs.

And in states where costs are especially high and incentives work like Hawaii, PPAs are helping a number of not-for-profit institutions go solar all at one time. Here is a prime example of solar plus battery storage PPA helping save nearly a half a million dollars per year.

In Part Two, we take a close look at the options to secure a loan or a unique lease offered by BlueSel Commercial Solar.

There is more to consider and compare about your financing options and consider which one works best for your organization or company. We welcome a chance to guide you through the first phase of your important decision with a No Cost Solar Evaluation. Or simply call us at  781-281-8130 .