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Two Workers Providing Commercial Solar Financing

Why Smart Businesses Are Opting For Commercial Solar Financing

It’s no secret that commercial solar financing is on the rise. With more and more conglomerates and companies turning to renewable energy, it makes sense that alternative forms of energy production have become popular topics for discussion.

What does commercial solar financing entail? Why should businesses consider this rising form of energy sourcing over traditional forms? To answer these questions there should be special attention paid to the ins and outs of the industry and a breaking down of why the traditional forms of energy production are on the way out.

Types Of Commercial Solar Financing

Commercial solar financing is a type of borrowing that provides access to business loans for the purpose of purchasing scaled PV systems, their installation, and associated operating costs.

There are three types of commercial solar financing: leases, PPAs and loans.


Leases allow businesses with good credit but tight cash flow problems due to present or future building expansions to invest in renewables without upfront expenditures. This will be an attractive option if there are outstanding debts on the property where the system will be installed. The lease gives your business immediate monetary relief by charging no more than a certain percentage for a set period of time. There can also be tax benefits down the line from depreciation deductions when leasing equipment rather than buying it outright and taking full responsibility for its maintenance.


PPAs are another type of commercial solar financing that involves signing a contract with the solar company to install, own and maintain a green power facility on your property in exchange for payments from you for their services. PPAs have become popular because they are suited to businesses that don’t want any responsibility of owning the installation or maintenance costs yet still receive some benefits of being able to use its power output.

PPAs can be advantageous when there is little available space on buildings or land where operations take place due to future building expansions as well as situations such as an inability to connect shading equipment elsewhere.


Loans for commercial solar financing are a business’s best way to finance power systems in a short period of time and can be customised for the individual company.

Businesses that are looking into commercial solar financing should look at what is being offered by their electricity supplier. Finding out if there are any relevant incentives such as tax breaks or incentives as it will be a better indication of the tangibility of setting up such a system.

The Benefits of Renewable Energy

Renewable energy, also referred to as green power, is an alternative source of fuel that is sustainable and does not produce any emissions. This means commercial solar financing will be a “green” way for businesses to run their facilities without producing harmful effects on the environment.

The benefits of renewable energy are vast with commercial solar financing being one of them: it’s cleaner for the environment, can decrease your business’ dependence on fossil fuels by up to 50%, lower operational costs, and increase in workplace efficiency are just some of its many advantages.

The disadvantages associated with renewables come from high start-up cost or barrier access which may discourage commercial solar financing investments, but this should not stop anyone interested in going green!

While it is still a new technology, there is no reason for smart and forward-thinking businesses to consider making the change and become a part of the greener future. With all the options available for commercial solar financing, it’s not a matter of IF, but a matter of WHEN to make the switch to a greener world and more efficient working environment.

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