Profit-making businesses benefit the most from an investment in solar energy.
EXAMPLE RESULTS FOR A LARGER SCALE FACILITY
Of course every business, every situation is different. We’ve seen paybacks as short as 2.9 years, and rates of return as high as 30%. It all depends upon how much you’re paying for electricity. Point is, you can’t know until we analyze your situation. Our analysis is free, so what are you waiting for?
|Less: Tax Benefits||– $643,642|
|Annual Electricity Savings||$83,496|
|Payback Period||4.5 years|
|Project Rate of Return||19%|
|Less: Tax Benefits||– $87,970|
|Payback Period||5.2 years|
EXAMPLE RESULTS FOR A SMALL BUSINESS
Gas stations, tire shops, auto body shops, corner markets, all are perfect candidates for solar energy. See the economics to the left from a gas station.
EXAMPLE RESULTS FOR AGRICULTURE
Farmers are in it for the long term, so why manage electricity on a month to month basis? How much do you want to pay, $0.17/kWh or $0.05/kWh? Let us show you what solar can do for you. It’s free, and it could save you 70% on your cost of electricity. Compare these figures:
|Average Electricity Rates in California||$0.17/kWh|
|Amortized cost of solar over those same kWhs?||$0.05/kWh|
NOT SURE YOU CAN AFFORD IT?
1. Site evaluation and sourcing
We gather requirements, conduct a site analysis, determine which technologies are best for your situation, and negotiate prices and contracts on your behalf.
We design your system to minimize solar energy costs and maximize financial return
Our solar energy installers provide onsite management, address any construction challenges, mitigate risk and ensure quality results.
4. System maintenance and monitoring
We offer custom maintenance and monitoring packages to ensure your system always performs at peak efficiency.
Imagine this. Your current electricity bill is $900 per month. With no investment up front, you can have solar on your roof and pay $700 instead. Hmmm, $900 or $700, $900 or $700. Tough choice.
Don’t be confused by all the different types of financing. Every business/non-profit/school/muni falls in the same two categories:
- Yes I can utilize the generous tax benefits that come with solar
– Loans are the way to go. You own the system, you get the tax benefits, when it’s paid off, everything
else is gravy. Solar loans are easy to get. We can help you.
- No I cannot utilize the generous tax benefits that come with solar
– Power Purchase Agreement (PPA) or Lease is the way to go. The finance company gives you a much
lower monthly payment because they own the system and get to utilize the tax benefits. In a way,
you’re monetizing the tax benefits through them. PPA’s and leases are also easy to get, and yes, in
answer to your next question, we can also help you get those.
The solar financial picture is highly dependent upon the tax breaks. As solar goes, non-profits work the same as profit-making businesses that aren’t making a profit. If you’re not making a profit, you can’t take the tax credits.
|With Tax Benefits||Without Tax Benefits|
|Tax Benefits||– $643,642||$0|
|Annual Electricity Savings||$83,496||$83,496|
|Payback Period||4.5 years||10.2 years|
Should I purchase?
Accept 10% as a healthy rate of return and buy the system as part of a long term plan?
Should I lease?
Lease the system with payments 10-20% lower than the previous electricity bill?
Leases and Power Purchase Agreements (PPAs) effectively work the same. A finance company purchases the solar system and pays to have it installed on your roof (or grounds). You enter into an agreement with the finance company to pay them a fixed amount for the duration of the contract, typically 10-20 years. The monthly payment will be lower than your current electricity expense, ensuring you save money from day 1. Because the finance company owns the solar system, they take advantage of the tax benefits, which allows them to offer you a favorable payment schedule. At the end of the financing period, the finance company typically sells the solar system to you at a small cost.
Educational & Municipalities
Leave aside educational opportunities and environmentalism, we’ve never seen schools and municipalities choose solar for those reasons. It’s always, about saving money. So let’s talk about saving money.
- Buy the system outright using bond money, capex money or donations. Buying is ALWAYS the best option financially, if the money can be found. You’ll eliminate your electricity bill and have no finance payments
- Sign a lease or Power Purchase Agreement (PPA) and make monthly finance payments less than the electricity cost you’re offsetting. Typically this saves 5-15%
- Use a short-term private muni bond to buy the system, with payments less than the electricity cost you’re offsetting, then at a later date pay off the muni bond from other funds such as a voter-approved bond.