Are there special loans for installing commercial solar power?
There are a number of ways to finance a commercial solar power system. These include:
- Property secured loan
- Capital equipment loans
- SAFE-BIDCO energy efficiency loans
- Equipment secured loans
- 3rd party financing
Property secured loans usually offer the best terms and lowest interest rates. If you are in the process of refinancing a commercial property you should consider the purchase of a solar power system. Payments on a secured loan are often less than, or similar to, the amount that your business will save in utility bills. Therefore installing solar power could result in immediate positive cash flow.
Capital equipment loans are probably the most common method for financing solar power systems. There are many banks and institutions who grant capital equipment loans. The loan terms will depend heavily on your lender and credit rating.
SAFE-BIDCO is a state sponsored loan program. They will give loans to small businesses for energy efficiency upgrades. Solar power qualifies for these loans. The standard term on a SAFE-BIDCO loan is five years, with a four-percent APR.
Equipment secured loans have much shorter terms than property secured loans and usually have higher interest rates. This is a good option for businesses that do not own the property or are unable to make use of a property secured loan. |
