Power purchase agreements and solar leases can eliminate up-front costs and are ideal for commercial use.
When considering solar energy for your business, what you really want is the power, so why shell out for the system? That’s the basic scheme of financial agreements known as power purchase agreements and solar leases that cover up-front equipment and installation costs while the customer pays only a monthly amount.
Does this sound too good to be true? Well, it isn’t, but the process can be rather complicated and contracts become very complex, according to Matt Lugar, vice president of sales at Stellar Energy in Rohnert Park, Calif. Lugar outlined the primary types of financial structures available for solar and the impacts of the 2008-09 financial crisis on the marketplace during a workshop held at the California Center for Sustainable Energy in San Diego, Calif.