Plan Your Solar Budget
In most cases, the biggest obstacle to a solar investment is the upfront cost. However, much of this cost is recovered within the first 120 days to one year. Contact us to learn how to reduce your upfront cost through our financing partners.
Commercial and Residential Solar Budget Planning
Typical Commercial Customers who invest in solar:
- Business Owners and/or Building Owners;
- Businesses that are green minded and want to reduce their carbon footprint;
- Businesses that can realize marketing benefits from being green
- Anyone who wants to promote renewable technologies and the creation of green jobs in Georgia;
The economics work best for commercial customers, who can take advantage of state tax credits and depreciation, particularly “Small Businesses”
Typical Residential Customers who invest in solar:
- Homeowners with substantial equity in their home;
- Homeowners that are green minded and want to reduce their carbon footprint;
- Anyone who wants to promote renewable technologies and the creation of green jobs in Georgia;
The biggest obstacle to solar is its upfront cost. However, financing options are available for credit worthy customers.
| Example Commercial Projects (for estimation purposes only) | |||
| System Size (kW) | 10 | 25 | 100 |
| Estimated Roof Area Required (Sq Ft) | 1,200 | 3,000 | 12,000 |
| Annual Energy Produced (kWh) | 13,600 | 34,000 | 136,000 |
| Installed Cost per Watt (including tax) | $6.77 | $6.51 | $6.25 |
| Total System Cost | $67,730 | $162,813 | $625,200 |
| Year One Cashflows | |||
| Federal Grant (30% of Total Cost) - cash in 60 days | $20,319 | $48,844 | $187,560 |
| State Tax Credit (35% of Total Cost - net of federal tax) | $15,646 | $37,610 | $144,421 |
| Depreciation Benefit (year one) | $12,281 | $29,521 | $113,361 |
| Power Generated (Georgia Power Program) | $2,390 | $5,975 | $23,900 |
| Total Year One Cashflow Recovered | $50,635 | $121,950 | $469,243 |
| Net System Cost after One Year | $15,596 | $40,863 | $155,957 |
| Payback (in years) | 5 | 5 | 5 |
| Annualized Return on Investment (or IRR) | 12.6% | 13.7% | 14.9% |
Financing Solar Projects
Most business owners will finance the incentives and depreciation at terms comparable to traditional equipment financing. In which case, the initial out of pocket expense is closer to the Net Cost after One Year. Financing options are dependent on the credit of the system owner.
Rural customers may qualify for USDA loan guarantees, which greatly enhance the attractiveness of a project.
Typical terms may be as follows:
- Loan Amounts: $50,000 - $1.5 million
- Loan-to-Value Ratio: 60% - 100%
- Term: 3 – 7 Years
- Interest Rate: LIBOR + 200 bps
Let us introduce you to our banking relationships that are familiar with this asset class and can quickly walk you the process.