Solar finance has evolved over the years to offer commercial businesses, educational institutions and government agencies with many options for going solar. GEC can evaluate your energy and financial goals and recommend the option that best meets your needs.
Cash or Loan
Paying outright for your solar investment can be an attractive option for companies with a strong balance sheet and a tax appetite. Using the federal Investment Tax Credit, up to 26% of a system’s installed cost can be reduced by the ITC through the end of 2022, and many utilities offer commercial rebates to further offset the cost. Several commercial banks and credit unions also offer operating lease financing options.
Commercial Property Assessed Clean Energy (C-PACE) is an innovative financing tool that provides low-cost, long-term funding for Illinois businesses interested in implementing energy-efficiency, renewable energy and water consideration projects on commercial properties. Several Illinois counties offer C-PACE financing; for more information contact your GEC account manager.
Power Purchase Agreement
A PPA is a financing arrangement that gives businesses, government agencies and educational institutions the ability to purchase solar with no upfront capital cost. PPA terms are generally 10-20 years, and may or may not include the sale of SRECs as part of the agreement.
SRECs: A Powerful Option in Illinois
The state of Illinois is a great market for solar, with a goal to generate 25% of energy statewide from renewable sources by 2025.
If your facility is located outside of Illinois, please contact our team for information regarding incentives and tax benefits.
State Renewable Energy Credits (SRECs) are certificates that are created when a renewable energy-generating facility produces energy. SRECs may be sold to a utility for meeting the state’s Renewable Portfolio Standards. The price of the credits in Illinois is set by the Illinois Power Agency and for commercial customers is paid out over 15 years, based on the size of the solar system. Note that selling your SRECs does not allow you to claim the environmental benefits of your solar, since they accrue to the purchasing entity.