Make a smart investment for your organization
Salem State University, Salem, MA - 415 kW
Let our solar financing expertise be your guide
With soaring utility bills and tighter fiscal budgets, many companies could benefit from the low, predictable electricity costs provided by solar energy. Undoubtedly, financing a solar or storage project is a complex process. That’s why Solect works with you to examine all the variables – ownership structure, federal and state tax appetite, current electricity prices, cost of capital, total system costs, and system life – to find the most appropriate financing solution to Power Your Tomorrow.
Key considerations for your solar energy project
How much access to capital do you have?
What are your other capital project priorities?
What’s your best path to solar – purchase, lease, or Power Purchase Agreement (PPA)?
Which state and federal incentives provide the greatest savings and return on investment?
How much of the federal investment tax credit (ITC) does your organization qualify for?
What are the system requirements and costs for long-term operations and maintenance?
How to pay for the solar energy system that pays for itself
The power of solar to positively impact your bottom line is a matter of simple math. Strong state and federal incentives plus technological advancements minus expensive utility energy costs. Most of our clients who purchase systems recoup their entire solar investment in about four years while earning double-digit returns. And you can, too.
DIRECT OWNERSHIP: Purchasing options
Own a solar energy system using capital funds or a combination of debt and equity and retain all the associated financial, tax, and environmental benefits.
Traditional loan
Your company or organization works to secure a traditional loan through the financial institution of your choice.
Operating or capital lease
Solect helps you secure a lease through one of our banking partners. Obtain up to 100% financing without an upfront investment so you can use your capital elsewhere.
Property Assessed Clean Energy (PACE) program
PACE enables you to procure energy efficiency and renewable energy projects through low-cost, long-term financing. Learn more about PACE.
SOLECT OWNERSHIP: Lease or Power Purchase Agreement (PPA)
Prefer not to invest capital in a solar energy project but still want a low electricity rate unaffected by utility increases? Let Solect build and operate a solar system on your property. Plus, take advantage of federal tax benefits and utility incentives to help buydown your equipment lease payments or PPA rate.
Lease
Solect rents physical property (rooftop, parking lot, land) from your organization for an agreed-upon lease term. Lease payments are made in regular installments or through an upfront payment plus installments, which allows you to pay for maintenance items such as roof improvements before solar is installed.
PPA
Solect builds, owns, operates, and maintains a solar energy system on your property as a third-party investor. Once the system is in place – and over the next 20 to 25 years – you purchase the energy produced at a cost per kWh well below current utility rates.
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Get as much as 50% of the system cost back from federal incentives
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Offset a significant portion of remaining cost through state incentives
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Reduce energy costs to 85% below retail utility rates by producing your own clean energy
A new path for tax-exempt organizations
The Inflation Reduction Act (IRA) of 2022 presents significant opportunities for tax-exempt organizations, states, and municipalities to invest in clean energy projects – including receiving direct cash payments for clean energy tax credits for the first time. Under this provision, the Internal Revenue Service (IRS) assesses your organization as if you made a federal tax payment equivalent to the credit amount, resulting in a refundable overpayment of tax. IRS guidance is forthcoming, and we will update our website when it does. Meanwhile you can contact us now for more information about this and other opportunities.
