Four Ways to Finance Your Solar Power Project

28 Jan

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Solar power is this decade’s buzzword for businesses who are looking toward implementing forward-pondering policies that will save them money while decreasing their carbon footprint with renewable, clean, safe energy from the sun. Solar energy protects your bottom line by lowering your monthly electric bill. In addition, our government provides monetary incentives to businesses in the type of federal investment tax credits (which can cover up to 30% of the set up expense of your program) coupled with tax positive aspects such as modified accelerated depreciation. State and local governments also give some incentives, normally in the kind of monetary assistance.

Solar Financing Option #1 – Operating Lease

One particular of the greatest positive aspects of the operating lease is the reduction in paperwork typically generated in a federally taxed situation. In this variety of lease, you never have to make any initial investment rather, a finance business purchases the solar energy method and leases it back to you on a monthly basis. These leases function much like automobile leases in that at the end of the term (generally 5 to twelve years) you have the option to acquire your technique outright at fair marketplace worth, which typically amounts to 10-20% of the system’s total cost. In the meantime, the finance company realizes any tax incentives and rewards, but they do pass these along to you in the type of reduce monthly payments.

Solar Financing Solution #2 – Capital Lease

Do you operate a for-profit business that generates taxable earnings? Then you might be interested in attaining your dream of constructing a solar energy project with out outlaying a big quantity of capital by way of a loan structured as a capital lease. This variety of loan is usually 5 to ten years in length and is comparable in nature to a house mortgage. Your firm receives any tax incentives, there is no cash down, and you can purchase out the loan at the lease’s end.

Solar Financing Alternative #3 – Municipal Lease

A municipal lease is most appropriate for those government or non-profit agencies that want to take advantage of the advantages of solar energy. These leases are generally longer in duration, ten to twenty-five years, and supply the lowest interest rates of all attainable alternatives. In addition, you can buy out your solar power project at the finish of the lease just as with the other choices.

Solar Financing Solution #4 – Power Purchase Agreement

A PPA provides the longest possible loan term at twenty to twenty-5 years. In this arrangement, the financing business sells you energy from your solar energy program at a contracted rate. Despite the fact that you pay only for energy created, tax advantages are passed on to you as lowered payments. In this arrangement, maintenance of your method is integrated. You may possibly still opt to get your technique for fair industry value at the finish of your lease.

Whatever variety of financing you decide on, most firms would agree that a solar power project can supply a lot of positive aspects, both economic and environmental.

22 Responses to “Four Ways to Finance Your Solar Power Project”

  1. Imelda December 30, 2012 at 12:05 am #

    a.Geothermal and solar energy both have a mining step, while nuclear energy does not.
    b.Geothermal and solar energy both require water, while nuclear energy does not.
    c.Geothermal and solar energy are both renewable, while nuclear energy is not.
    d.Geothermal and solar energy both generate a significant amount of waste, while nuclear energy does not.

  2. Timika December 30, 2012 at 12:05 am #

    Will the solar power hit the solar power panels and produces electricity.. or what ?

    Where are you able to put solar power panels ?

  3. Timika December 30, 2012 at 12:07 am #

    what’s the easiest method to enter the solar power market is still using a thorough photo voltaic education as provided?

  4. Yu December 30, 2012 at 12:36 am #

    I’m writing a literature review essay..and i must discuss concerning the political impact of solar power..can anybody produce some advices or good examples for which i’m able to do relating to this subject.

  5. Earl December 30, 2012 at 5:04 pm #

    I been looking throughout but I don’t obtain the information which i need. I have to find Just how much electricity is created from solar power and never wasted in certain other type of one’s (ex/ warmth)? I’d love when the answer involves a percent efficiency. Thanks!

  6. Milan December 30, 2012 at 11:33 pm #

    I am writing an essay on solar power, and that i need atleast one source from the periodical about solar power. I can not really find good magazines, but I haven’t got use of my library right now. What are the good magazines on solar power available on the internet and give decent details about it in order to finish my essay? Thanks.

  7. Gale December 31, 2012 at 5:07 am #

    What enviromental troubles are triggered by Solar Power and what’s the concept for the price of say, one cell?

  8. Cole December 31, 2012 at 12:31 pm #

    Please let me know some disadvantages and benefits of using solar power. I should also know why it’s a renewable resource. Are you able to also let me know the amount of of solar power remains and just how lengthy it’ll last. Many thanks. [Let me know some websites to vist relating to this information]

  9. Golden December 31, 2012 at 7:33 pm #

    How a smaller amount solar power is received at 60 levels latitude than that received in the Equator?

  10. Jeramy January 1, 2013 at 8:35 am #

    What enviromental troubles are triggered by Solar Power and what’s the concept for the price of say, one cell?

  11. Kacy January 1, 2013 at 11:01 pm #

    I have had a major science assignment – aren’t able to find any information on Solar Power…..

    I want an account from it and just how it’s helpful in society.

    Research being carried out today of solar power to really make it better.

    AND pros and cons for solar power.

    Good quality websites could be greatly appreciated……. Thanks

    can anybody have some URL’s

  12. Huey January 1, 2013 at 11:34 pm #

    I understand that solar power is the sun’s energy changed into elctrical energy and all sorts of exceptional stuff, but when you warmth a sheet of flashing copper, place it under the sun also it makes a bit more energy of computer did within the shade, is the fact that thermal or solar power

    OK I believe the actual question I am asking is when is thermal energy changed into elctricity

  13. Bobby January 1, 2013 at 11:38 pm #

    I saw a chapter in extreme transformation home edition were they built a home for any family plus they used solar power to energy the home I love that does not simply because will work for the envirorment but since i think is much better for all of us too, When we take proper care of our planet we reside in I believe will last more.

  14. Tianna January 2, 2013 at 7:33 am #

    I have read that some areas with temperate/cold environments have built solar power stations while sunny nations as Africa, Egypt and mexico still rely on other sources. Can you explain that? Is solar power hard to rely on? Thanks ahead of time.

  15. Rey January 2, 2013 at 8:07 am #

    How costly will it be to construct a vehicle that’s powered strictly by solar power?

    and through the power produced by its wheels turning while moving. Obviously I realize it would need to have the ability to keep photo voltaic and kinectic energy for use later when needed..

    I understand you could do, but I must understand how much you believe it might cost, and also the reason for your would be to discover how far we may be from getting a production vehicle such as this.

  16. Micheal January 2, 2013 at 10:36 am #

    So how exactly does the photo voltaic battery billed using solar power panels?What’s the mechanism that converts solar power directly into electrical power? Just how can a vehicle be operate on solar power?what is its maximum speed?

  17. Abraham March 23, 2013 at 4:26 pm #

    Would like to know how solar power works. Also what does it takes to build one. How much is the cost. How much will it produce In savings from the electric companys. Is bigger always better. Can we sell this back to the electic company? Sure hope someone can help me. I believe this could make alot of money and also help us become more indepanted.

  18. Carter July 20, 2013 at 3:17 pm #

    How much would a solar power plant capable of producing 500 megawatts cost? Thanks!

  19. Rickey August 19, 2013 at 6:55 pm #

    Although they haven’t been stolen YET, I expect my solar power lights to get stolen sooner or later. I was wondering if you know a good way to prevent them from getting stolen (other than moving them somewhere else or not putting them out at all)?. Oh, and i would not like to make a cement foundation for them or buy different ones -lol. Any help will be greatly appreciated 🙂
    oh, and please make the answers reasonable, don’t be crazy.

  20. Thad August 23, 2013 at 5:21 am #

    I’m looking a battery for use with solar power and it has the following specs.

    Volts 12
    Capacity @ 20-hr rate 120
    Capacity @ 100-hr rate 145

    How does this translate into running a 1000 watt appliance and how long you can run it with this battery.

  21. Khadijah September 6, 2013 at 10:54 am #

    And is an area of 1 km^2 for a solar power tower enough to produce energy for five houses? can you make an approximation of how much it could supply?

  22. Alonzo September 12, 2013 at 4:38 am #

    List some good reasons you would/wouldn’t want a solar power plant near your home. This is for a school project so please list some good answers.

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