Cash
Highest return on investment.
- 3-7 years of payback period.
- Customer entitled to federal and state tax credits, SREC's and state incentives.
- Complete ownership of the system from day 1
- Claim accelerated depreciation on your solar system
Capital lease (not recommended for NonProfit organisation)
- Just like a loan or mortgage but without any upfront cost.
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- You can choose between a 10 or 15 year lease term.
- You get the tax benefits of ownership, depreciation and the interest component of lease
payments.
- You get the 30% federal tax credit for solar and/or state grant and/or state tax credit.
- Your interest rate depends on your credit history and the solar system size.
- Often proves to be the best aftertax return on investment.
- You get 10/15 years to enjoy free electricity from solar after end of your lease payments.
Power Purchase Agreements (PPA)
- No Upfront cost or maintenance cost associated.
- The PPA provider owns, installs, maintains and operates the solar system.
- You buy all the electricity produced by solar at a discounted price than the utility rate.
- Usually PPA is a 10 to 20 year agreement, with an option to buy out the system or extend
the PPA at the end of the term.
