Solar Energy Project Funding
Soak up the Sun with Flexible Solar Energy Project Funding
Once considered a radical departure from traditional sources of power that supplied electricity to the electrical grid, available exclusively to companies that were located in areas with plentiful year-round sunshine, solar energy farms have become a viable option for entrepreneurs with varying budgets around the world. This evolution is due in large part to flexible solar energy project funding.
The 30 percent federal energy tax credit, along with incentives offered by individual states and utilities, have helped drive the steady, continued surge in the market for commercial solar energy providers. The federal solar investment tax credit lowers the federal tax liability for those who purchase solar energy technologies that qualify for the credit. Federal support for these individuals and businesses was further bolstered when Congress extended tax and production credits for renewable energy or five years in 2015.
While the production of solar energy was once primarily limited to states in the southwest that receive abundant sunshine, advances in the technology used to harness and convert the sun’s rays have made it possible for solar plants to produce energy in a larger number of locations across the United States and in other parts of the world.
Orchestrating the Endeavor
There is no doubt that the future looks bright for solar farms. In fact, that's probably why you've entered the business in the first place. However, it's critical to obtain solar energy project funding from an organization that has the same vision as you do. While there are many places you might go to find funding for your venture— from government grant programs to individual investors— your best bet is most often an investment and development group. These companies tend to have the experience in the industry, international perspective and keen analytical capacities you'll need in a financial partner.
Flexible financing options offered by industry insiders can make funding your solar energy projects ROI climb faster. Submit a fully accurate proposal, and these companies might even show you which type of financing you need. Three types of solar financing structures rank as the most popular among project developers and installers:
- A cash purchase involves a one-time cost, secures ownership of the system hardware and includes progress payments while construction is underway.
- A power purchase agreement requires no upfront capital cost, a third party owns the hardware and payments are made according to kWh consumption.
- A lease entails zero or low upfront cost, a third party owns the hardware and the lessee makes recurring payments for the hardware.
There are many details besides these key points, so it pays to be versatile. Choose a company that offers flexible solar energy project funding, and you'll have a reliable partner— come rain or come shine.