The price of solar panels has dropped 95% since 2008, according to a recent video produced by Bloomberg.com. Couple that with the recent extension of the 30% Solar Investment Tax Credit (ITC), and it seems like the perfect time for any company considering solar to take the plunge. Why, then, are some companies still hesitant to jump?
Despite the dramatically lower price tag, solar projects still require a significant up-front investment. And for a growth-focused company, that can be hard to justify when the funds could be used elsewhere, like product line expansion or simply strengthening the company’s overall financial position.
There is a way for companies to take advantage of these attractive buying conditions without impacting the budget: through a budget-neutral financing solution.
By aligning lease payments with expected energy savings, you can achieve a budget-neutral or even cash positive solution. Financing allows you to avoid the large up-front cash purchase and instead pay a low, fixed monthly payment over time.
While solar panel prices may continue to decrease, the Solar ITC will not always be as lucrative as it is today. After a few years, the 30% credit will begin to taper off to only 10%. Financing your solar project will allow you to act now and take advantage of the improved affordability and highest available tax credits. In addition to generating substantial energy savings, investing in solar technology also demonstrates your commitment to a sustainable future to your customers. By avoiding the large up-front cost, you can use those available budget dollars to fund other important growth initiatives.
At First American, we are helping companies achieve their growth goals through creative financing solutions. Learn More >>