Third-party financing allows more property owners to “go solar” by lowering the cost of solar installation and maintenance of a system. Companies continue to develop new products and services to meet growing demand for solar. Go Go Green Roofing and Solar is committed to supporting our clients.
Quick Facts
Third-party financing is an established financing solution in the United States, and it has recently emerged in the solar industry as one of the most popular methods of solar financing for consumers to realize the benefits of solar energy.
Third-party financing of solar energy primarily occurs through two models. A customer can sign a traditional lease and pay for the use of a solar system or the customer can sign a power purchase agreements (PPA) to pay a specific rate for the electricity that is generated each month.
In 2011, more residential solar systems in California were financed through third-party developers than through traditional cash purchases.
80% of residential solar installations in Colorado in the first months of 2012 were financed by a third-party model.
Solar Power Purchase Agreements and Leasing Models
Third-party financing of solar energy primarily occurs through two models: power purchase agreements (PPAs) and solar leases.
In the PPA model, an installer/developer builds a solar energy system on a customer’s property at no cost. The solar energy system offsets the customer’s electric utility bill, and the developer sells the power generated to the customer at a fixed rate, typically lower than the local utility. At the end of the PPA contract term, property owners can extend the contract and even buy the solar energy system from the developer.
In the lease model, a customer will sign a contract with an installer/developer and pay for the solar energy system over a period of years or decades, rather than paying for the power produced. Solar leases can be structured so customers pay no up-front costs, some of the system cost, or purchase the system before the end of the lease term. Similar leasing structures are commonly used in many other industries, including automobiles and office equipment.”
Call Go Go Green Roofing and Solar at (682) 325-2682 or fill out the form to the right for more information.
Source: http://www.riseprofessional.org/