According to a report on solar industry research data, major U.S. corporations such as Target, Walmart, and Apple are installing renewable energy at their facilities at a much faster rate than ever before. One huge takeaway from the report is that the amount of solar installed at U.S. corporations and businesses is enough to offset 2.4 million metric tons of carbon dioxide emission each year.
As more businesses look to lessen their footprint on our environment, this metric should be enough to convince them that renewable energy is here to stay at a corporate level. Not only can businesses work towards a greener future, but they also can reap the benefits of transitioning to solar energy.
When businesses transition to solar to generate energy for their manufacturing, distribution, storage, retail, and many other applications, they can reduce operating costs, protect themselves against an increase in utility rates, and attract more customers who support businesses that are committed to sustainability. Businesses of all sizes are now starting to capitalize on the financial opportunities that are associated with installing solar due to the guarantee that they will have a solid financial return on investment.
If you are interested in transitioning to solar energy there are three common types of solar financing options available for your commercial business.
If you have available capital and are able to absorb tax credits and accelerated depreciation, a cash purchase might be the most attractive option for you. By avoiding third party expenses and interest rates, you have complete control of your solar power system, which allows you to reap the highest savings from your solar investment. Additionally, your business will be able to directly benefit from all the associated federal, state and local renewable energy tax credits and incentives.
Aside from the financial benefits of purchasing solar using cash, you can avoid:
One downside you may encounter is that you might have to hire a professional who can take care of the operations and maintenance of your system. You do not want problems to go unchecked and you certainly t want somebody with the right skills in charge of such an important investment.
If you cannot afford to buy the system outright, there are solar financing options available to you that require help from a company that specializes in solar financing. When you choose to apply for a solar loan, you allow your business to receive significant savings with no upfront cost. With many solar energy loans, you have the opportunity to finance the entire cost of your system. Your loan can be secured while using your business as collateral or you can opt to have your loan be unsecured.
The other option you have if you cannot buy your system outright is to obtain a solar lease. A solar lease allows your business to “lease-to-own” your solar system with little to no upfront cost, which ultimately allows you to reduce your initial capital investment. What is great about a solar lease is that the electrical savings generated from the solar system are more than what your monthly solar lease installment will be. This is where you will see the largest savings in your electricity bill.
Now that you know the solar financing options available, it’s up to you to decide if you want a company that specializes in solar financing or wish to go through a bank. There are many advantages of using a solar financing company, which include flexible terms, customizable loan and lease sizes, as well as valuable solutions for future success.
Solar financing companies like AVANA Capital are committed to clean energy financing due to their belief that renewable energy will not only improve our environment, but it will create value for our future generations. Their team of solar professionals has the expertise to underwrite and provide financing for projects in sectors like municipal, commercial and industrial. The type of term financing AVANA Capital supports includes sale-leaseback, conventional, US Department of Agriculture (REAP), and USDA Department of Agriculture (B&I).
For more information about the solar financing options AVANA Capital offers, contact AVANA Capital today and one of their professionals will answer any questions you might have.