A Power Purchase Agreement (PPA) is beneficial to non-profits and other organizations that cannot take advantage of the investment tax credit. Without out of pocket costs, this program fixes your price of power for 20 to 25 years and frees you from volatile utility price increases.
Property Assessed Clean Energy (PACE) financing requires $0 out of pocket cost and allows for long finance terms. Rates are fixed for the balance of the term since these are clean energy loans requiring that the project creates a cash flow positive scenario from day 1.
Because it is based on a property assessment the repayment is off balance sheet. The assessment is non recourse and stays with the property in the event of the sale of the building. Clients take advantage of this option to finance solar along with other energy and infrastructure upgrades .
An operating lease, or an off balance sheet lease, allows the property owner to take advantage of the energy benefits of ownership, while the lender takes the tax benefit. The resulting payments can be as much as half off a conventional Capital Lease with the ability to own the array at a substantially reduced rate at the end of the term.