Solar for your home, business, or agriculture can significantly reduce your electricity bills and decrease your carbon footprint. There are several options available to make your investment in the future easier.
Pros:
– Immediate Savings: By paying for your solar system upfront, you eliminate monthly payments and start saving on electricity bills right away.
– Maximum Return on Investment: Without interest payments or loan fees, you get the most financial benefit from your system.
– Tax Incentives: Cash buyers can take full advantage of federal and state tax incentives.
Things to think about:
– High Initial Cost: Requires a significant upfront payment which might not be feasible for everyone.
Pros:
– No Upfront Costs: Spread the cost of your solar system over several years with manageable monthly payments.
– Ownership Pros: You still own the system and can benefit from tax incentives.
– Flexibility: Various loan terms and interest rates are available, making it easy to find a plan that suits your budget.
Things to think about:
– Interest Payments: Depending on the loan, you may end up paying more over time due to interest.
– Credit Requirements: Approval may depend on your credit score.
Pros:
– No Upfront Costs: Start saving on your energy bills immediately without any initial investment.
– Maintenance Included: The leasing company typically handles maintenance and repairs.
– Predictable Payments: Enjoy consistent monthly payments for the duration of the lease.
Things to think about:
– No Ownership: You do not own the solar system, so you can’t take advantage of tax incentives.
– Potential Savings: Monthly savings might be lower compared to owning the system outright.
Pros:
– No Upfront Costs: Similar to leasing, PPAs allow you to get solar with no initial investment.
– Pay for What You Use: Instead of paying for the system, you pay for the power generated at a fixed rate, often lower than your utility rate.
– Maintenance Included: The PPA provider handles system maintenance.
Things to think about:
– No Ownership: The PPA provider owns the system, so you don’t benefit from tax incentives.
– Long-Term Contract: PPAs usually involve long-term agreements, which can complicate things if you decide to sell your home.
Pros:
– Lower Interest Rates: Often, these loans have lower interest rates compared to personal loans because they are secured by your home.
– Tax Deductible: Interest on home equity loans may be tax-deductible.
Things to think about:
– Home as Collateral: Your home secures the loan, so failure to make payments can result in foreclosure.
– Credit Requirements: Approval is based on your home equity and creditworthiness.
Pros:
– No Credit Check: Approval is based on property value rather than credit score.
– Repay Through Property Tax Bill: Payments are made through your property tax bill, which can be passed on to new owners if you sell the house.
Things to think about:
– Higher Interest Rates: Interest rates might be higher compared to other financing options.
– Availability: Not available in all areas.
TruNorth has deep expertise in all of these options. Call us and we can help find the right solution for you!
Transitioning to solar energy with a TruNorth Solar pays for itself quickly and will provide years of clean, green energy and positive financial returns.
There are a variety of options for Business owners to finance their solar and storage systems.
TruNorth Solar’s Commercial Finance Team specializes in creating custom options tailored to your financial needs.
A third-party investor purchases the solar power system from TruNorth Solar. The investor owns, operates, and maintains the system for the life of the term. Your business buys the electricity generated by the solar system at a discount to your utility rate. You pay nothing out-of-pocket, never have to worry about the system, and start saving immediately.
PACE financing is a type of financing that allows property owners to finance the cost of energy-efficient improvements to their property through an assessment on their property taxes. PACE financing is available to both residential and commercial property owners.
You can borrow money from a bank. Loans can be secured by your real estate or unsecured. The TruNorth Solar Commercial Finance Team can help you secure a loan to finance your solar project.
With an Operating lease for a commercial solar system, a financing company purchases the solar system from TruNorth Solar and then leases it to the commercial customer. The lessor receives the tax benefits including depreciation and the Federal Investment Tax Credit (ITC).
Capital Leases are similar to loans. You can capitalize on all tax and depreciation benefits that come with solar. Monthly payments are typically higher than an operating lease option because the buyout at the end of the term is usually just $1.
Many agricultural operations in Minnesota are considering solar installations to reduce energy costs, increase sustainability, and boost profits. TruNorth Solar’s commercial clients in Minnesota can leverage our extensive financial relationships with banks and other institutions to find the best type of agricultural solar funding.
Here are some financing options for you to consider:
Offers low-interest loans to farmers for projects that improve water quality, including renewable energy installations.
Financial institutions offer commercial loans and leasing options for solar projects.
