Capital Acquisitions (Purchases).  If you have the available resources, an outright purchase of a solar project is an optimal way to receive maximum benefits at minimum cost.  Once purchased and paid for, the solar project provides: a) free, predictable electric power for 25+ years; b) an initial investment tax credit of 30%; c) bonus depreciation available to shield owner income; and d) receipt of available state and local incentive programs which may offset all or most of the initial cost.

Power Purchase Agreements (PPAs).  Instead of buying the electric power from the local utility, you receive discount-priced power from the panels sitting on your roof or on your available ground space.  The benefit is a reliable, long-term source of discount power without the projected rate increases expected from the local utility.  The project owner (not you) assumes the operating risks but also receives the tax and production incentives.  In most cases, a commitment to purchase the power for up to 20 years is required to facilitate the required financing.

Leases.  Operating leases replicate the primary feature of a PPA, but offer some advantages typically available only to owners.  Instead of a monthly invoice for the electric power generated (which may be higher or lower depending upon use) a lease generally requires a simple fixed fee. Tax benefits are retained by the owner, but other incentives may be shared.  Because leases tend to be shorter (7 years typically), the parties may renew the lease or structure a purchase at fair market value. 

Non-Profit Funding Opportunities.  On one hand, not-for-profit entities generally cannot receive the investment tax credits or depreciation tax shields.  On the other hand, non-profits can leverage a variety of programs and opportunities to raise low-cost capital without distorting other fund-raising activities.  In this economic environment, access to low-cost capital can be the biggest challenge.  We have a variety of programs available to assist not-for-profits to capture most or all of the tax and other benefits and raise low-cost capital.  Contact us to learn how!