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What is the best financing option for me?

The right financing option depends on your capital availability, tax position, risk tolerance, and how long you plan to occupy the property.

There's no single best way to finance a commercial solar project — the right choice depends on your organization's financial situation and priorities. Here are the key factors to consider.

Available Capital

If you have capital available and aren't competing with higher-priority investments, an all-cash purchase delivers the highest lifetime savings. If upfront capital is limited, a PPA or lease lets you start saving immediately with no money down.

Tax Position

The 30% federal Investment Tax Credit is only valuable if you have sufficient tax liability to use it. Organizations with strong tax positions benefit from ownership structures (all-cash or loan) that let them claim the credit directly. Tax-exempt entities like nonprofits or government agencies typically benefit more from PPAs, where the developer captures the tax credits and passes savings through as lower electricity rates.

Risk Tolerance

PPAs and leases shift performance risk to the developer — they're responsible for maintaining the system and ensuring it produces as expected. With an all-cash purchase, you bear the operational risk (though warranties and maintenance contracts mitigate this significantly).

Property Tenure

How long you plan to occupy the building matters. All-cash purchases and long-term PPAs work best when you own the property and plan to stay for 15+ years. If your occupancy timeline is uncertain, shorter-term lease structures or community solar subscriptions may be more appropriate.

Quick Comparison

All-Cash: Highest lifetime savings, requires upfront capital, you claim tax credits, you handle maintenance. PPA: No upfront cost, immediate savings, developer claims credits, developer handles maintenance. Loan: Moderate upfront cost, you claim credits, you handle maintenance, interest reduces net savings. Lease: Low or no upfront cost, fixed monthly payments, ownership terms vary by lease type.

If you're unsure, request proposals for multiple financing structures from your solar developer. Seeing the numbers side by side for your specific building makes the decision much clearer.