The campaign for sustainable and clean energy is stronger today than ever before. Among the various renewable energy sources, solar energy has become increasingly popular due to its efficiency and reliability. Many businesses are taking advantage of this and are considering installing solar panels to reduce their carbon footprint and save on energy costs.
However, the upfront costs of solar panel installation can be a barrier for small-to-medium-sized businesses. That’s where commercial solar financing comes in.
What is Commercial Solar Financing?
Commercial solar financing is a form of funding used to finance solar energy projects for businesses. It allows small-to-medium-sized operations to take advantage of solar energy without having to pay the upfront costs. Instead, the financing company will provide a loan or lease agreement that allows the business to install solar panels and pay for them over time.
The financing terms can vary depending on the company providing the financing, the size of the project, and the energy savings expected from the installation. In addition, the financing company will typically provide ongoing maintenance support, making sure the solar panels are kept in good working condition and maximizing the energy generation potential.
How Much Does Commercial Solar Financing Cost?
The cost of commercial solar financing can vary depending on the financing company, the size of the project, and the terms of the agreement. Some financing companies may charge interest rates, while others may charge fixed monthly payments.
The cost can also depend on the type of financing chosen, such as a loan or lease agreement. However, despite the cost of financing, businesses can still save money in the long run by reducing their energy costs. Typically, the cost of commercial solar equipment ranges from $2.50 to $4.00 per watt, and the financing cost will add an additional 10-20% to the total cost of installation.
For example, for a property size of 30,000 square feet and an energy usage of 20,000 kilowatt-hours per year, the total cost of a commercial solar setup would be approximately $60,000.
Popular Brands for Commercial Solar Financing
There is no one preferred brand for commercial solar financing, as the financing terms and options can vary greatly depending on the company providing the financing. However, it is important for businesses to do their research and choose a reputable financing company that has experience in solar energy projects.
Some popular companies that provide commercial solar financing include SunPower, Tesla, and Sunrun. These companies have been in the industry for a long time and have proven themselves capable of providing businesses with reliable solar energy solutions.
Benefits of Commercial Solar Financing
There are many benefits to choosing commercial solar financing for small-to-medium-sized businesses. Here are a few:
- Reduced energy costs: By installing solar panels, businesses can reduce their energy expenses by using renewable energy instead of relying on traditional sources like coal or gas.
- Tax credits: Businesses can take advantage of federal tax credits for solar energy installations. These credits can reduce the overall cost of the installation and make solar energy more affordable.
- Increased property value: Installing solar panels can increase the value of a commercial property, making it more attractive to potential buyers.
- Environmental benefits: By reducing their carbon footprint, businesses can contribute to a cleaner and more sustainable environment.
Tips for Financing Solar Equipment for Commercial Use
If you’re considering commercial equipment financing for your business, here are a few tips to keep in mind:
- Research financing options: Take the time to research different financing companies and compare their terms and options.
- Understand the financing terms: Make sure you understand the terms of the financing agreement before signing anything. This includes interest rates, monthly payments, and any other fees.
- Calculate the return on investment (ROI): Calculate the return on investment for the solar panel installation to ensure that it will provide long-term savings for your business.
- Consider your energy needs: Consider your energy needs and usage when planning the size of your solar energy installation. This will help ensure that you have the right amount of solar panels to meet your energy needs.
Work With a Reliable Financing Partner
If you’re ready to take the next step in commercial solar financing, consider Charter Capital.
As a financial broker with experience in solar energy financing, Charter Capital can help you find the best equipment financing options for your business. We have helped many businesses secure financing for solar energy projects, from small-scale projects to large commercial developments.
Get in touch with our team today to learn more about our services and how we can help your business take advantage of solar energy. Call Charter Capital.