Installation of solar panels can be a beneficial investment, for both residential, as well as, commercial purposes. The advantages of solar panels are manifold. You can save on your electricity bills to a great extent, so much so that, you can even eliminate the costs. Using solar power can reduce the usage of fossil fuels. Thus, you can save yourself from the harmful emissions as a result of the use of these fuels. Investing on solar can be one of the best investments by any organization and a great step to save the planet. There are various commercial solar financing options that are offered by most reputable service providers of solar power. Some of the options include solar power purchase agreement, lease, financing, and cash purchase.
Below is a brief discussion on all these options that organizations can choose from reputable service providers:
- Power Purchase Agreement, also known as PPA is a contract between the service provider and the organization or buyer. Here, the buyer, purchases the energy output at a rate that is agreed upon by both parties. A power purchase agreement is of great help in terms of creating savings on annual electricity usage. Thus, the organization can utilize the purchased energy, without having to pay any upfront costs or without any other obligations. The PPA provider usually takes the responsibility to contract with the solar energy provider, as well as, manage the construction, permits and incentives. Once the system has been installed, the PPA company owns it and responsibly operates it. Only reputable energy providers have a partnership with the best known PPA companies. A PPA contract can be of 10 to 20 years with most well known service providers.
- Lease is an option whereby the buyer organization can make monthly payments for the system, without the need for any down payment. Here, the buyer can directly contract with the service provider for building the system and for accessing incentives. Most well known service providers offer lease duration of almost 5 to 20 years and provide an option for significant savings for a long term.
- There are project financing options available too. Through, the available financing options, the organization contracts with the service provider.
- The buyer organization can use cash to purchase the system completely.
Reputable service providers have knowledgeable and experienced team of professionals who can help to determine the option that is most suitable for the organization. Whether you should go for a solar power purchase agreement, or opt from the other financing options, with them, you can be sure of getting the most profitable solution for your organization.