Project Financing

CapEx, OpEx, We have Options!

Discover the perfect solar financing path in SolBid’s platform to optimize cash flow and ROI that fits your businesses budget


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Explore solar project financing for sustainable energy initiatives

CAPEX
  • Directly purchasing solar assets provides the greatest Return on Investment (ROI). Benefit from substantial federal tax incentives, local incentives, and REC market opportunities, including REC swaps to maximize solar Internal Rate of Return (IRR).
LEVERAGE
  • Commercial Property Assessed Clean Energy (C-PACE) financing and traditional bank loan financing can provide various options to reshape cash outflows and inflows. Use the SolBid platform to model what option best fits your requirements.
OPEX
  • Operating Leases (OpLease) and Power Purchase Agreements (PPAs) can provide businesses with onsite solar energy, including REC’s, as an Operating Expense (OpEx) commitment, without the capital expenditure (CapEx) budget requirement.
C-PACE

THE COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY

The Commercial Property Assessed Clean Energy (C-PACE) program allows for solar financing and repayment through a voluntary property tax assessment with their municipality. Provisioning up to 100% financing and long-term repayment options.

Long-Term financing up to 20 years
Non-Recourse and Transferable
Off-Balance Sheet Financing
RURAL AND AGRICULTURAL

United States Department of Agriculture (USDA)

Agricultural or rural businesses that qualify for the USDA Small Business classification can get Grants and Financing from the USDA.

Loan guarantees on loans up to 75% of total eligible project costs; Max $25M
REAP Grants for up to 50% of total eligible project costs; Max $1M
Combined grant and loan guaranteed funding up to 75% of total eligible project costs
THIRD-PARTY SOLAR OWNERSHIP STRUCTURES

Avoid CapEx Budget Approval Requirements

Third-Party Owned Solar Options
  • Power consumer receives all clean electricity generated
  • Power consumer pays Financier under a PPA or OpLease
  • Power consumer doesn't pay any upfront capital for installation
  • Financier maintains operations of systems
  • Financier receives all tax and financial incentives
  • Power consumer can elect to acquire the RECs
Operating Lease (OpLease) Model
  • Financier leases solar asset to power consumer for a monthly fee
Power Purchase Agreement (PPA) Model
  • Financier sells clean electricity at a $/kWh to power consumer

TAX CREDITS AND INCENTIVE PROGRAMS

These incentives aim to promote clean and renewable energy sources, reduce greenhouse gas emissions, and enhance energy independence.

INVESTMENT TAX CREDIT (ITC)

The U.S. federal government provides a tax credit, which can be up to 50% of the system cost, depending on specific parameters. Additionally, there are favorable carryback and carryforward provisions that enable businesses to capture the avoided tax value as soon as possible, thereby reducing the financial impact of installing solar. Tax-Exempt entities can claim direct cash payment in lieu of a tax credit.

ACCELERATED DEPRECIATION (TAX WRITE-OFF)

The U.S. federal government allows business owners to elect BONUS depreciation and the 5-year MACRS schedule to accelerate the tax write-off of solar assets. These provisions enable businesses to capture the avoided tax value as soon as possible, thereby reducing the financial impact of installing solar.

OTHER FINANCIAL INCENTIVES

Local governments and utilities sometimes provide additional clean energy financial opportunities. These may include Renewable Energy Credit (REC) markets where solar assets can sell RECs, or specific solar-based incentive programs in the form of grants, tariffs, on-bill credits, etc. The SolBid platform automatically identifies these for each project and includes them in the financial analysis.