new logo

Blog Details

Commercial Solar Solutions: A Guide from Financing to Installation

Solar Solutions

Finance management is among the most critical challenges business owners face in commercial solar project installations. However, with several solar energy loan options available for commercial properties, business owners can confidently proceed with the installation.

A 2023 report showed that the US solar loan market expanded by over 25%, reflecting growing interest and accessibility for businesses seeking solar energy financing. When such useful options are available, why not leverage them for your commercial solar installation? Let’s explore all financing options available and tips for finding the best company.

Check Out Commercial Solar Financing Options

Businesses looking to adopt sustainable energy solutions without bearing the upfront costs—consider commercial solar financing options. Below, have a look at the options available:

  • Commercial Solar Loans

Through this solar energy financing option, businesses can borrow money to purchase solar panels and related equipment.  These loans provide flexible terms & competitive interest rates, allowing businesses to spread out the upfront installation cost while benefiting from immediate energy savings and potential tax incentives.  You can easily obtain these loans from banks, credit unions, or specialized solar financing companies. 

  • Power Purchase Agreements (PPAs)

Under a PPA, a third-party developer installs, owns, and maintains the solar system, and the business agrees to buy the power generated at a predetermined rate. In power purchase agreements, businesses can experience benefits like little to no upfront cost, provide immediate savings on electricity bills, and shift maintenance and operational risks to the provider.

  • Commercial Solar Rebates and Incentives

This is a financial incentive offered by governments, utilities, and other organizations to encourage businesses to adopt solar energy. These incentives can include cash rebates, tax credits, grants, and performance-based incentives. Below are the top benefits included:

  • Federal Investment Tax Credit (ITC): Allows businesses to deduct a significant percentage of the installation cost from their federal taxes.
  • State and Local Rebates: Many states and municipalities offer additional financial incentives, such as grants, to promote solar adoption.
  • Solar Leases

Like PPAs, it involves a third-party company owning and maintaining the solar system. However, instead of buying the electricity, the business pays a fixed monthly lease payment, which helps simplify budgeting.

  • Commercial Property Assessed Clean Energy (C- PACE) Financing

It is a financing option available in 36 states, including Texas, for all commercial solar energy projects. C-PACE allows businesses to finance solar energy projects through a property tax assessment. Many owners find it attractive because the repayment periods can extend up to 20 years, lowering annual payments. Also, the repayment obligation can be transferred to the new owner in case of sold property.

  • Green Bonds

It is specifically designed to finance environmentally friendly projects, including solar energy installations. Companies can issue these bonds to attract investors interested in supporting sustainable initiatives. The advantages include:

  • Access to Capital: Green bonds can substantially fund large-scale solar projects.
  • Enhanced Corporate Image: Demonstrating sustainability commitment can improve a company’s reputation and attract environmentally conscious investors.
  • Energy Service Agreements (ESAs)

These are similar to leases but are performance-based rather than being set on a fixed term. In an ESA, the building owner repays the provider through the electricity bill savings generated by the solar energy system. Once the ESA term is over, the building owner continues to benefit from the low-cost solar energy and all the savings generated by the system.

Check out all these solar energy loan options and choose the one that best fits your business’s financial and operational needs. 

Advantages of Installing Solar Energy for Your Commercial Property

Here are several compelling reasons why more commercial property owners should consider solar installation.

 

A research paper from the National Renewable Energy Laboratory states that commercial solar systems can generate an ROI in the range of 7% to 15%, with a payback period between 5 and 12 years.

 

  • Environmental Impact: Reduce carbon footprint and demonstrate corporate social responsibility using clean, renewable energy.
  • Long-Term Investment: Solar installations offer a high return on investment (ROI) over their operational lifetime, often exceeding traditional investments.
  • Energy Independence: Hedge against rising energy costs and fluctuating utility rates by generating your own power onsite.
  • Cost Savings: Solar energy reduces or eliminates electricity bills, which automatically saves you from operational expenses.

Selecting the Right Solar Installation Company

Now, you know about solar energy financing options and installation benefits for your business. The next major step includes— the selection of the right installation company. Let’s discuss what you should consider while choosing:

 

According to Solar Energy Industries Association (SEIA) reports, the commercial solar sector in the USA has grown steadily. In the first quarter of 2024, the US solar industry installed 11.8 gigawatts-direct current (GWdc) of capacity, with utility-scale projects accounting for 9.8 GWdc. This marks a notable achievement, as it exceeds the annual total for utility-scale installations as recently as 2019.

 

  • Check customer testimonials to gauge the company’s reputation—positive feedback indicates reliability, quality of service, and customer satisfaction. 
  • Ensure the company only uses high-quality solar panels, inverters, and commercial-grade equipment. These further enhance the system’s performance, longevity, and reliability over the years.
  • Select the company that offers long-term warranty and financing options to support your solar installation. This not only ensures that your investment is protected but also saves additional costs. 
  • To avoid unexpected hidden fees at the end, select a reputable company that offers a budget estimate upfront.

 

Still facing complications and trouble in finding the best—consider Solomon Renewables. We guarantee to use only Tier 1, commercial-grade equipment and products sourced from the industry’s most reputable solar companies like Silfab Solar, Solar Insure, etc, where a 30-year warranty backs all. 

With our solar fiduciary approach, we provide customized solar solutions, transparent quoting, and AI-driven designs for optimal performance. Our solar experts will provide guidance throughout the process and ensure a seamless installation. Being one of the most reliable solar companies, we also offer loan options for solar installation projects. Check out our solar energy financing options for more details!

Conclusion

Running a commercial entity on solar energy substantially differs from homes because many crucial operational activities depend on an uninterrupted power supply. Also, heavy-duty plant setup incurs huge costs, which can only be managed with suitable financing source awareness. We have covered almost every relevant information regarding these aspects for you in this blog. If you need personalized assistance with custom quotes for commercial space, check out our smart estimation calculator or book a meeting online

Recommended Posts