Installing solar panels is a top way to make a business or a home more energy efficient and environmentally friendly. For little or $0 Down, you can lock in your low rates and save thousands for the life of your Solar system. The savings start from day one.
Government and utility incentive programs can drive down the cost of solar installation by more than 50%.
FEDERAL TAX CREDIT
Commercial and Residential Solar Investment Tax Credit
The federal rebate is 30% off your installation price. Simply fill out a one-page form as part of your federal tax return, and you’ll get your money as a tax rebate. If you do not expect to owe taxes this year, you can roll over your credit to the following year since the credit is available through 2017.
Some states are also establishing public solar financing programs, known as Property Assessed Clean Energy programs. Under a PACE program, the city loans the homeowner the cost of the system and the homeowner pays the money back through higher property taxes.
There are currently multiple avenues to finance your solar project, often requiring little or no money upfront and which are immediately cash flow positive. FCI Management works with multiple lending organizations to help find the best option for your unique project.
THIRD-PARTY SOLAR FINANCING
Third-party financing of solar energy primarily occurs through two models:
• Power purchase agreements (PPAs).
• Solar leases.
Solar Power Purchase Agreement (PPA)
In the PPA model: an installer builds a solar energy system on a customer’s property at no cost. The solar energy system offsets the customer’s electric utility bill, and the developer sells the power generated to the customer at a fixed rate. At the end of the PPA contract term, property owners can extend the contract and even buy the solar energy system from the developer.
In the lease model: a customer will sign a contract with an installer and pay for the solar energy system over a period of years or decades, rather than paying for the power produced. Solar leases can be structured so customers pay no up-front costs; some of the system cost, or purchase the system before the end of the lease term.
Paying for Solar PV with Cash
Paying for a solar system with cash is the most cost effective way to go solar. Our financial analysis can give you specific numbers and you can achieve payback in 5 to 7 years. After that, you’ll be decreasing your operating costs with free solar power for the remaining life of your solar installation. Since solar PV systems last 25 years or longer, those savings could be significant.
- The Federal Investment Tax Credit (ITC) will reduce your solar system cost by 30%.
- You’ll get another IRS tax deduction in the form of Modified Accelerated Cost Recovery System (MACRS), which accelerates the depreciation of the solar installation over a 5-year period.
- All other available state or utility rebates or tax credits will further reduce your cost.