As organizations in the Northeast look for ways to save on energy costs and reduce their carbon footprint, solar energy is increasingly becoming the go-to solution. Despite the generous federal and state incentives, the initial cost of a solar installation can be a perceived barrier for some.
Fortunately, several financing options are available to help organizations transition to solar energy affordably, including two that enable adoption with little or no upfront costs. These options are particularly attractive when interest rates are rising.
Power Purchase Agreement: Immediate Savings and Hassle-Free Solution
A Power Purchase Agreement (PPA) eliminates the barrier of upfront costs, enabling an organization to turn their rooftop into an energy generator and experience immediate energy cost savings. Through a PPA, a third-party investor, like Solect Energy, owns the project – providing the funding, installation, monitoring, and maintenance. In exchange for hosting the system, your business gets electricity at discounted rates, and can invest the savings into your operations.
Advantages of a PPA
- No upfront cost or balance sheet impact
- Low, fixed, all inclusive kWh rate protects against fluctuating energy prices
- Operations and maintenance included
Solar Site Lease: Zero Upfront Costs and Hassle-Free Solution
With a solar site lease, Solect leases your roof for a solar installation, and provides you with a lease payment for the term of the lease. Lease payments can be in regular installments, such as yearly, or can be a combination of regular installments and an upfront payment. An upfront payment allows building owners to pay for maintenance items such as roof improvements before solar is installed.
Advantages of a Solar Site Lease
- New revenue stream for the term of the lease
- Option to receive an upfront payment to pay for property improvements
- Operations & maintenance included
Overcoming the Cost Barrier
The once-perceived cost barrier to solar adoption is effectively overcome when an organization realizes that they can have a solar array designed and installed with minimal or no upfront costs, allowing them to reap the substantial, long-term financial benefits of solar energy.
To learn more about solar for your organization or to schedule a no obligation consultation with Solect Energy, you can contact us by email info@solect.com, phone 855.800.4211 (press 1), or click on the button below.
July 13, 2024