Financing
At Granite Bay Energy, we are committed to providing the best price for our systems and to working within each customer’s budget to make solar power affordable for everyone. Some businesses and homeowners choose to purchase solar systems directly. Others require different options, such as favorable term leases or Power Purchase Agreements (PPAs). All of our clients want a solar system that makes sense for their unique situation.
Creative Financing for Renewable Energy
That’s why we work closely with a variety of financial partners and lenders to ensure that you or your business receives the best possible financing and a rapid return on your investment in solar and renewable energy technology. Together, we’ll develop a plan that makes the most long-term sense for you and your business. And no matter how you choose to finance your system, you can feel confident that you’re helping the environment and improving your bottom line.
Residential Financing Opportunities
Homeowners have a variety of ways to finance solar electric systems. Many choose to finance their systems with funds from a home equity line of credit. Typically, monthly payments on these type of loans are equal to or lower than what the homeowner is currently paying the utility company for power. These types of arrangements enable the homeowner to deduct the interest on the loan and to take advantage of the 30% (of net cost of a system!) Federal Tax Credit (Solar ITC) Homeowners with excellent credit also have the opportunity to borrow up to $100,000 for solar or energy efficiency upgrades through Clean Power Finance.
Commercial Financing Opportunities
Businesses and agricultural operations have three principal ways to finance a system:
- Loan
- Lease
- Power Purchase Agreement (PPA)
The following table illustrates the differences between these options.
| Loan | Lease | PPA | |
|---|---|---|---|
| System Owner | Customer | Lessor | Investor |
| Term | <10-25 Years | 15 Years | 20 Years |
| Accounting Treatment | On balance sheet | Normally off balance sheet | Always off balance sheet |
| Construction Financing | N/A | Yes | Yes |
| Credit Consideration | Most Costumers | Most solar customers | Longer term means better credits |
| Pricing | Fixed/floating for term | Fixed payment for term | Fixed rate based upon per kWh produced |
| Payment Inflation Rates | N/A | 5% | 5% |
| Payment | Monthly | Monthly | Monthly |
| Federal Energy Tax Credit | Customer’s account | Lessor’s account | Investor’s account |
| Federal Depreciation | Customer’s account | Lessor’s account | Investor’s account |
| State Depreciation | Customer's account | Lessor’s account | Investor’s account |