Kurios Energy can give you many options to get solar funded for your business.
A cash purchase is the most economical way for your business to go solar. This ensures that your business can take full advantage of all available incentives, tax credits, and depreciation options for your solar system. Although this option does require a larger up-front capital investment for your business, it also produces the highest return on investment.[break][break][break][break][break]
An operating lease gives your business the option to rent the solar system for 6-14 years and make monthly lease payments, which can be offset dollar-for-dollar for income earned. In addition, your business may qualify to receive utility rebates and incentives or solar renewable energy certificates that improve cash flow. In addition, you will have the option to purchase the solar system at the end of the lease at 10-20% of the total system cost.
Our Capital/Finance leases and loans give your business ownership of the solar system, thereby allowing you to take the ITC 30% and the MACRS depreciation tax benefits. This will significantly reduce your total system costs and shorten your payback period. The terms are flexible from 5-12 years and also allow your business to make timely balloon payments to help you manage cash flow better.
Power Purchase Agreement:
With a Power Purchase Agreement (PPA), your business can benefit from solar energy immediately while minimizing cash flow impact. Since the financing company owns the system, they pay to install and maintain the system, they pay to install and maintain the system. They realize the tax and incentive benefits and pass the savings on to you in the form of cheaper electrical rates. In short, you save money day one with no capital outlay. You have the option to purchase the system at the end of the term.
Contact us today if you are seeking a solar financial solution for your business and would like more information.
Government Incentive Program Analysis
Federal Tax Credit
Since 2009, the solar investment tax credit for commercial system owners is 30% of the gross system cost. This credit may be used the same year you install solar energy, or can be carried over for up to 5 years.[break][break][break][break][break]
Modified Accelerated Cost Recovery System (MACRS) Depreciation
MACRS depreciation allows businesses to depreciate 100% of the cost of their solar system over 6 years. The actual tax implications from MACRS vary from business to business, but usually accounts for approximately 20% of the system cost in additional savings.
These 2 incentives alone can cut the cost of your solar energy system by 50%!
California’s Self-Generation Incentive Program (SGIP)
The California Public CPUC's Self-Generation Incentive Program (SGIP) is a state-run program aimed at providing incentives to support existing, new, and emerging distributed energy resources. The SGIP provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems.
What does this mean to you?
SGIP may provide your business with additional incentives that may further cut the cost of your solar system.