Solar Financing
Wednesday, July 14, 2010
Solar Financing
Using solar financing, homeowners have the option of switching to photovoltaic solar power without the necessary large up-front investments. Recently, General Motors used a solar financing model known as a solar lease to pay for a solar installation on top of a warehouse.
Here's how solar leasing works:
- Solar contractor and customer agree on a solar installation
- The customer contracts to buy solar from the installer at a competitive rate
- Steady income stream to the installer make it possible to finance the project
This solar leasing model of solar financing has benefits for both parties.
Customers can switch to solar at competitive rates.
Eliminates up-front investment of customer.
Protects customers from future rate-hikes by utility companies
Businesses get more business.
Businesses save money by negotiating for tax incentives.
