Financing Solar Power

PPA Partners offers a full range of financing options to allow project partners maximum flexibility in developing renewable energy solutions.    The chart below provides a sampling of possibilities. Call us to discuss specific projects.


PurchaseBorrowSolar LeasePPA/SSA
DescriptionPay cash directly to install solar equipmentBorrow money to install solar equipmentObtain solar lease for equipmentPurchase electricity from equipment installed by PPA provider
OwnershipDirect ownershipDirect ownership with security to lenderEquipment owned by lessorEquipment owned by PPA provider
IncentivesOwner keeps incentives; mon-Profits unable to use ITCOwner keeps incentives; non-Profits unable to use ITCLessor may keep incentives, depending on contractPPA provider keeps incentives
Non-Profit Federal Tax Incentive Considerations*Non-profit unable to monetize federal tax incentivesNon-profit unable to monetize federal tax incentivesLessor monetizes federal tax incentives to benefit non-profitIPP monetizes federal tax incentives to benefit non-profit
Development TermsConstruction progress payments and full payment due on system commissioning Construction progress payments and full payment due on system commissioningLessor arranges construction financing and full payment at system commissioningPPA provider arranges construction financing and full payment at commissioning
Payment TermsConstruction progress payments and full payment due on system commissioningInterest payments on construction financing. Principal and interest payments on loan terms.Construction financing loan terms and fixed lease payments on equipment financing. Balloon payment to allow refinancing possibleTwo options: base rate plus annual escalator; or fixed discount from specified utility rate
Typical LengthN/A5-10 to 15 years5-10 to 15 years15-20 to 25 years
Design LiabilityHostHostLessorPPA Provider
Performance RiskHostHostHostPPA Provider

* Fully monetized federal tax incentives