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Saturday, December 5th, 2009

Think you can’t afford solar for your business? Think again.

March 27, 2008 by Ali  
Filed under Business

On-site renewable energy is as clean as it gets but when it comes to solar photovoltaic the upfront costs are often too intimidating for businesses to take on. Part of the drawback is a somewhat uncomfortably long return on investment. Homeowners, who are mortgaged for longer than a solar investment return, might tend to see the payback within their term of ownership but for a business, especially a new business, the payback time is often just too long.

Well, solar companies are taking this into consideration and making the incentive to go solar a little more feasible with creative financing. Solar energy is cheap, the sun shines freely. But the equipment needed to harness that energy and turn it into electricity doesn’t come so cheap. Enter solar rental.

With new financing arrangements, businesses can basically “rent” the equipment for solar energy. The solar company covers the install and the business (or homeowner) pays the solar company for the power. The structure of this energy deal is known as a “power-purchase agreement” model, or P.P.A.. Another example of this is PG&E’s recent PPA of wave power.

The New York Times has more on this new path to solar power, but this type of deal sounds like it could take the investment cost out of solar energy and make it more accessible to businesses.

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Comments

One Response to “Think you can’t afford solar for your business? Think again.”
  1. Incentives seem like a fair way to get people on board. While many may support solar in principle, the financial part of things may be more difficult.

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