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Receive up to 30% annual return on your investment
When you purchase a solar system from CalSolar, there are multiple purchasing and financial options available. CalSolar’s financial specialists work with you to make sure you understand the different options then assist you in choosing the one that works best for your budget and goals.
- Cash Purchase
- Leasing Options
- Power Purchase Agreement (PPA)
Call today to discuss these options in greater detail. Our financing specialists will help you fully understand the benefits associated with each option and determine which is best for your needs.
Cash purchases allow the buyer to be eligible for the 30% federal tax credit and MACRS (Modified Accelerated Cost Recovery System. This is the current tax depreciation system and allows the capitalized cost basis of tangible property to be recovered over a specified life by annual deductions for depreciation) program.
Additional benefits of cash purchases:
- Ownership can be assumed in the first year
- Returns on investment can be seen as early as three years after purchase
Leasing allows your business to generate solar electricity without an upfront capital investment. When leased, the solar equipment is provided (at no cost) in exchange for a monthly lease payment.
Additional benefits of leasing:
- The elimination of an electric bill and the fixed payments (lease cost) allows your operation to be cash flow positive within the first year with zero upfront capital investment
- Rates as low as -1.97% (when amortized over the 7-10 year lease) from lending institutions offset the lack of eligibility of the 30% tax credit
Power Purchase Agreement (PPA)
A Power Purchase Agreement (PPA) allows two parties to contract with each other to generate electricity, often times with no upfront capital cost. Typically, one party generates the electricity by installing a solar system on an unused rooftop, parking lot, or parcel of land and sells to the other party. Most often, this type of agreement is used with nonprofits, business, and government agencies.
Additional benefits of PPAs:
- PPA’s allow operations with no tax liability to have realized savings year one
- Provides nonprofits with the ability to accurately budget and plan due to a fixed monthly utility bill
Don’t’ let rising energy costs slow down your production. Offset the costs by utilizing Solar PV systems.
Reduce a fixed cost of your business by going solar and in turn increase profit margins by several fold.
See the cost savings by creating a “solar farm.” These systems serve the sole purpose of producing energy to sell to the utility companies.