Solar projects can be simple to initiate for those rare cash buyers, but solar is now a new possibility for financers. In 2010, banks and other lending institutions have made the energy sector a pillar of their business, meaning that companies implementing solar energy have a great advantage in financing their investment. Advanced Green Technologies is experienced in working with these banks to bring the best value to prospective owners. Currently, the ideal candidates for solar integration are for-profit entities. For-profit entities can benefit from a variety of tax benefits from Federal and NC State Governments. Mainly, solar energy is purchased by companies either using the tax benefits or leasing the equipment from a tax investor.

The simple loan would allow for up to 100% loan to value with very competitive rates on the loan. The loan is structured to be timed with the NC State tax credit and depreciation deductions. Therefore as the benefits would come in, the loan is paid. For companies that can monetize the tax benefits, the solar equipment is always cash flow positive and always pays for itself as can be seen by this sample cash flow graph.

On the other hand, some companies can utilize lease deductions but do not have access to significant amounts of tax liability for the available tax credits. For companies that have a good credit rating, lending institutions offer an operating lease. This lease would be for 72 months and offer purchasing companies the ability to write off the lease payments while the bank takes all of the tax benefits. At the conclusion of the term, the purchasing company would purchase the system at a fair market value and again be able to depreciate and deduct the value. A sample cash flow graph would be similar to the one below.

The banks are ready to deploy their capital in either situation. For further discussion with Advanced Green Technologies on which model would be best for your company, please contact our solar energy specialists by completing our North Carolina contact form to schedule an appointment for a webinar or in-person meeting.