Financing Options
We offer the Conergy Commercial Finance Program developed by Conergy and Rockwell Financial. The program provides flexible, finance options for commercial borrowers with expert support through the entire sales cycle. This provides all our customers the opportunity to enjoy a complete financial turn-key solution.
Due to the fact that in Hawaii up to 65% of a system puchase is based on tax incentives, there may be a situation where the tax incentives are larger then the tax liability of a corporation or entity.
Other non-profit or government entities do not have tax liability at all. For these reasons, we offer solutions that have the ability to take advantage of the tax liability for you.
We also offer a financial solution from Solar Power Partners in the form of a Power Purchase Agreement. This now allows us to have access to the Hawaii Commercial Solar Energy Fund I (HCSEF I). It is now possible for us to install a turn-key photovoltaic system on your business with no system purchse. You just have to pay for the power it produces and are able to hedge off future utility price increases.
Funding Options
Finance Lease
Principal method of financing and strongly similar to conventional bank financing, only more flexible.
Benefits include:
- Flexible terms. Leasing offers more flexible payment and structure terms than purchase.
- 100% Financing - Certain expenses such as installation, freight, and sales tax may be included in a lease. Generally these items are not financed with conventional borrowing.
- Extends Credit Line - Rather than tying up bank lines of credit, or using cash operating funds, Leasing allows an additional line of credit.
- Tax Benefits Structuring. Leasing enables flexible structuring to allocate tax benefits to entities that can fully utilize them.
Tax Exempt Lease Purchase
Reduced interest rate financing for government and non-profit entities who wish to own their solar system. This offering is also available for public schools and universities.
Operating or True Lease
Similar to a Finance Lease, but when a business cannot take advantage of tax credits, or when you want to pay for a system with operating dollars, not capital dollars. It is essentially a "rental" contract with fixed terms and conditions. The Lessor gets depreciation and tax credits. The lease can be considered "off balance sheet" for lessee.
Power Purchase Agreement (PPA)
A Power Purchase Agreement, or PPA, is a long-term agreement to buy power from a company that produces electricity. Solar Power Partners (SPP™), using its own source of funds, builds a solar energy facility on a customer's site and maintains and operates the facility for 15 years or longer. This facility generates reliable, long-term clean energy for use by the customer. Under the terms of a PPA, SPP™ assumes the risks and responsibilities of ownership when it purchases, operates, and maintains the turn-key facility. We clean the solar panels regularly, provide preventative maintenance services, repair any faults, monitor the energy production and the system's health and well-being. The customer just runs their businesses as usual, without any of the headaches of owning a power plant. At the end of the PPA term, the facility can be purchased by the customer at fair maket value or the PPA can be renewed on favorable terms. The PPA enables the customers (and our world) to benefit from the use of "green" energy, while still receiving some of the benefits of ownership (lower and/or "hedged" electricity costs, positive public image, etc. ) and allows them to spend their capital budget on their core businesses.
