If you’re shopping around for a solar energy system, chances are you’re looking to save money while tapping into a renewable, sustainable energy source. Here are some simple steps you can take before deploying a solar solution that can help save money and even potentially generate positive cash flow right away.
Decide on Ownership
One of the most important steps before embarking on the journey towards solar energy is deciding how vital ownership is to your organization. Do you want to own your solar energy system outright? Or would you be open to a solar lease or solar PPA whereby your organization gains access to solar energy while forgoing some of the rights of ownership? If ownership is important to you, there are plenty of financing options to make that possible. However, a solar lease or PPA can minimize upfront costs but can become a nuisance if you plan on selling your building.
Understand Commercial Solar Financing Options
Once you’ve decided how important ownership is on your list of priorities, you can start narrowing down financing options. We’ve covered this topic in a previous blog post, but the three most popular financing options include:
- Cash Purchase
- Solar Loan
- Solar PPA
When it comes to financing your solar project, there is no one-size-fits-all answer. If you’re overwhelmed by your options, partnering with a solar partner like Verogy can help streamline the process while finding an optimal solution for your needs and goals.
Research Incentives
Along with financing, understanding what incentives are available is a critical part of maximizing the value of your solar energy system. Depending on your region and industry, you likely qualify for one or more incentive program. One of the best places to start is with the U.S. Department of Energy’s Tax Credits, Rebates & Savings search engine. You can refine your search to include your state, eligibility, and category.
Net Metering
Net energy metering (NEM) is a billing arrangement that allows you to deliver unused energy back to the grid. By doing so, you earn credits at the retail energy rate. In the event that you need to tap into the grid for supplemental power, those credits are applied to your monthly utility bill, so you may not even be charged for using that electricity. If you don’t end up using any credits for a given month, they roll over to the next month, so you may never have to pay for electricity again.
Solar Energy Credits
Solar renewable energy credits (SRECs) allow you to track and potentially profit from the solar energy your system generates. The more electricity your system creates, the more SRECs you receive. You can then choose to sell these credits as a way of offsetting the cost of your solar installation and generating positive cash flow.
Ready to maximize the ROI of your energy project? While you can always tackle it alone, partnering with the solar experts at Verogy can help ensure you’re getting the most out of your next solar investment. Contact our team today and we’ll help you leverage your financing options for the best value in the industry.
