Tag Archives: SPPA

How do solar leasing companies make money?

How can companies like SunRun, Sungevity, and SolarCity provide a zero down or $1000 down solar lease while charging less per month than a utility company? Here’s a high level overview of how solar leasing companies make money. The first step is project finance. Because there is a 30% federal tax credit for residential solar electricity projects, the leasing companies, […]

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Why is Solar Attracting Investors?

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There is a popular saying in the in investing world, follow the money. If you follow the money lately you would find that some of it at least is flowing towards solar. This year alone we have seen PG&E create a $60 Million tax equity fund for SolarCity and then a $100 Million tax equity fund to […]

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Solar Leases: A New Way to Finance Solar

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Earlier this month we outlined a new type of solar financing product called Solar Power Purchase Agreements (SPPAs). These programs offer homeowners an alternative to purchasing a home solar power system. With SPPAs, a company retains ownership of the solar power system and you simply buy the power the system produces for a set contract period. Similarly, solar […]

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