Energy from the sun is a clean, abundant and free alternative to fossil fuels. The diminishing cost of solar arrays, combined with innovative financing, is helping to make photovoltaic installations both environmentally and economically smart. Watch the archived Parking Power Plants webinar with David Froelich of Solaire Generation to learn more.
Parking Power Plants: A GPC Webinar
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David Froelich: firstname.lastname@example.org
How do solar installations benefit parking facilities?
Solar technology offers parking facilities the opportunity to generate clean power internally. Depending on location solar production and consumption can drive a properties energy costs down while providing a hedge against future increases in energy costs. The implementation of solar panels also bolsters an organization’s corporate responsibility program.
What financial options are available?
Three financial options available to parking facilities interested in adopting a solar energy program are a cash purchase, power purchase, and lease agreement. A facility owner’s ability to monetize tax benefits plays a critical role when deciding which financial option is a best fit.
A cash purchase of solar technology is the most simple of the options. Under this financial process there is an internal monetization of the tax benefits and all of the risks and benefits of the solar system are absorbed directly by the property owner.
An additional financing option is a power purchase agreement. A power purchase agreements allows the facility owner to enter into a contract with a financier who will install and maintain the system. Under this option the property owner will only purchase the solar power generated by the solar system. They have no responsibility for the actual system.
The final option is a solar system lease. A lease options allows the tax benefits of installing a solar system to be monetized by a third party. The system will be purchased and installed by a third party. The third party will then enter into a long-term lease with the property owner, in effect giving the owner the full upside and risks of a cash purchase. This is a great option for organizations that would opt for a cash purchase but are unable to monetize the tax benefits associated with solar installations.