4 FAQs about Financing plan for 500kwh photovoltaic cabinet used in subways

How can a commercial solar project be financed?

Commercial solar projects can be financed through several methods, including: solar power purchase agreements (PPAs), solar leases, energy services agreements, tax equity financing structures such as sale leasebacks and partnership flips, and cash or loan purchases of the system.

What are the different types of commercial solar financing?

Leases and PPAs (Power Purchase Agreements) are common ways of financing commercial solar properties. Both share similarities, as in the PV system being owned by a third-party financier, and the deals can be structured with no upfront payment.

What is tax equity financing in solar projects?

Tax equity financing in solar, such as in a partnership flip, involves the tax equity investor purchasing the PV system from the project sponsor and then leasing it back. The project sponsor retains the right to use and operate the system and receive revenue through its operation.

Are asset-backed loans a good option for commercial solar customers?

An asset-backed loan can be a good option for some commercial solar customers, according to Chase. For instance, if a commercial solar customer is a building owner with a long-standing business but without investment-grade credit, they may still qualify for a loan, but with a high interest rate.

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