Funding Your Project

C-PACE

Commercial Property Assessed Clean Energy, also referred to as C-PACE, is a new NYS program that allows you to monetize your property with solar, whether it’s the roof of a building or a plot of land, without out-of-pocket costs. This solution is not held on your balance sheet, but is classified as a benefit assessment on your property tax bill, and therefore does not affect your credit.

With payment terms of up to 30 years, no personal guarantee needed, and no payment due until your system produces revenue, you gain greater profitability up front.

Leases

Leases provide funding without significant upfront costs and offer predictable, fixed monthly payments.

A capital lease, which incurs interest, is similar to owning a piece of property, and will be treated as an asset on your balance sheet, allowing you to claim depreciation on the asset and capitalize on all available tax credits.

An operating lease is structured so that the lender is the owner of the system and recipient of its depreciation and tax credits. Similar to renting a piece of property, it is not held on your balance sheet. This option is most practical for those who cannot utilize the tax and depreciation benefits that come with a solar system.

Power Purchase Agreement (PPA)

While not technically a funding solution, PPAs are a popular approach to commercial solar in regions with high electricity rates, like New York and Long Island. With a PPA, a third party owns and operates the system, and leases the energy that it generates to you at a fixed rate, protecting you against rising utility costs. The PPA rate is often lower than your electric bill, allowing you to save on operating costs over the span of the agreement, which is typically 20-30 years.