The Hopkinton-based solar company’s “Solar for Small Business” program will allow small businesses to see significant savings
HOPKINTON, MA, March 15, 2016 – Solect Energy, a leading full-service commercial-scale solar developer and installer in Massachusetts, announced today three new financing options to help Massachusetts small businesses cut their costs by shifting to solar energy.
The “Solar for Small Business” program builds upon Solect’s six-year track record of bringing smart, cost-effective solar solutions to larger businesses and commercial properties.
“We are excited to be able to offer these financial solutions which were developed specifically to meet the unique needs of this historically underserved market,” said Craig Huntley, Chief Development Officer of Solect Energy. “Small businesses have always been an essential part of the American and Massachusetts economy; it only makes sense to assist these institutions in benefiting from the same clean energy and reduced operating costs that have been helping larger businesses for years now.”
The Solar for Small Business program includes three “pre-packaged” financing solutions, with options that require little to no upfront costs. The three solutions, which Solect offers in partnership with a national lending institution, include the Solect Solar Loan, the Solect Operating Lease, and the Solect Capital Lease.
The Solect Solar Loan allows small business owners to own their solar PV system outright, using capital funds or bank financing. Any small business going solar with Solect can take advantage of the pre-negotiated Solect Solar Loan, which offers a simplified one-page credit application, 48 hour credit approval, low interest rates, and 84-month loans specifically designed for small- to medium-sized businesses.
The Solect Operating Lease offers a financial solution for those small businesses unable to fully utilize the tax benefits associated with going solar, but that seek to take advantage of the financial benefit of installing a system. Solect’s leasing partner is able to lower overall system costs by 35% to 45% through monetizing current incentives such as accelerated depreciation and the federal income tax credit (ITC). This helps lower lease payments to create a positive cash flow throughout the term, allowing small businesses to maintain their budget and achieve the tax benefits of a 100% tax-deductible solar array. At the end of a fixed period, the lessee is able to purchase the system or extend the lease.
The final financial solution in Solect’s Solar for Small Business Program is the Solect Capital Lease. Capital leasing enables small business to fully finance their systems with zero capital outlay as compared to paying upfront or seeking bank loans to purchase the system. The lessee may choose to purchase the asset outright at the end of the lease term for one dollar.
Solect’s “Solar for Small Business” program coincides with the recent Solar Renewable Energy Certificate (SREC) carve-out for solar PV arrays under 25 kW in Massachusetts. The 10 year SREC payment term facilitates best-in-class financing opportunities for participating businesses thereby enabling lower operating costs and spurring further development in the communities they serve.
In addition to the three new financing options mentioned above, Solect also offers Solar Power Purchase Agreements (PPAs) for systems up to 300 kW, available to non-profit institutions throughout the state.
For more information on the “Solar for Small Business” program, visit Solect’s Solar for Small Business webpage.