Financing for Your Organization
Whether you are looking to go solar with no money down or make a permanent investment in your organization’s infrastructure, Luminalt has the flexibility and experience to craft a solar system and financing package that best meet your financial and energy goals. Here are the most popular financing options.
Make a permanent investment in your organization and enjoy the benefits of free energy for the lifetime of the system. Your organization keeps all state and local incentives as well as the 30% Investment Tax Credit and Accelerated Depreciation. Cash purchases benefit from the highest return on investment and the largest reduction in your monthly energy costs.
Lease a solar system and receive the benefits of free energy throughout the term of the lease. At the end of the lease term, you have the option of buying the system for as little as $1. This option is designed for organizations with tax equity but with limited cash for investment and is similar to a simple loan.
Also known as a tax lease or a true lease, ownership of the solar system stays with a third party without any commitment to buy at the end of the lease term. Your organization makes a small monthly payment to the system owner and in exchange enjoys the benefits of free energy and lower monthly utility bills. All incentives, including the 30% Investment Tax Credit and Accelerated Depreciation stay with the third party system owner. This option is designed for organizations with little or no tax equity.
Power Purchase Agreement (PPA)
Under a PPA, your organization purchases the energy generated by the solar system for a fixed price per unit, which is lower than the current utility price. PPA terms are generally longer than lease terms and systems may be purchased for fair market value at the end of the PPA. All state and local incentives, as well as the 30% Investment Tax Credit and Accelerated Depreciation, stay with the third party system owner.