How to Finance with Cedar Creek Energy: Part 2 of 2
At Cedar Creek Energy, we’re here to help our clients receive the maximum return on interest, financing rebates and tax advantages available, so your system can break even as quickly as possible. Let us help finance your commercial solar system, so you can focus on doing what your business does best.
We’ll take a look at what you’re trying to accomplish and where you hope to be 5, 10, and 25 years down the road and then we connect with one of the green energy lenders. We have long-standing, trustworthy relationships with a wide variety of these forward-looking lenders in Minnesota and throughout the nation. On top of our great financing options, we also have access to the numerous tax credits and discounts offered, and we’re happy to help you receive them.
The tax incentives, available rebates and discounts offered to commercial solar installations are a great way for businesses to break even on their solar system as quickly as possible. From federal tax credits to lesser-known grants, we’re here to help you uncover all your financing options to give you the maximum payback possible.
Federal Solar Investment Tax Credit— This is one of the largest incentives for businesses to go solar. It’s a federal income tax credit for Minnesota businesses with solar energy systems. When you install a solar array, you’ll receive a 26% tax credit on the total purchase price. So, if your solar investment was $50,000, you will receive a $13,000 one-time tax credit that will be deducted from any federal tax you owe at the end of the year the solar installation was completed. This is a steal of a deal!
Unfortunately the credit will drop to 22% in 2023, and will be phased on by the end of 2024 (unless it’s re-extended by Congress), so now is the time to act!
Xcel Energy Solar Rewards Program—If you’re considering switching your business to solar, this is a program you’ll definitely want to get on board with. This program is offered for solar installations for systems sizes that are 40 kW or less. If your commercial solar installation meets the system sizes, this program is a great way for your business to make profit. You’ll be paid .07 cents/kWh for every kilowatt-hour produced from your system for ten years. Picture this- instead of receiving a monthly electric bill from Xcel, you’ll receive a check. Pretty cool, huh?
PACE Program—This is a great way for commercial property owners to finance their solar systems. In the Twin Cities, and throughout Minnesota, PACE allows property owners to access competitive private financing through partnerships with local governments and the St. Paul Port Authority. With PACE, you’ll have the opportunity to finance up to 20% of the “current assessed value of a parcel.”. This means that if your building and the property are assessed at one million dollars, you would qualify for $200,000 of PACE financing for your commercial solar system.
City of Minneapolis: Green Business Solar Projects—If your business is located in Minneapolis, this program is just for you. The Green Business Cost Share Program will provide funding and an incentive of .25 cents per estimated annual kWh production for the 1st year of production, up to $75,000.
Lenders—Our positive reputation has led us to develop long-standing, trustworthy relationships with a wide variety of green energy lenders throughout Minnesota. We’ll take a look at what you’re trying to accomplish, when you’re hoping to pay back and when your ROI starts, and then we’ll connect you with one of our lenders. Just another bonus of working with Cedar Creek Energy!
Other Programs—Are there any other commercial solar energy system financing programs available for your business? We’ll tell you. We stay up to date on every level of financing programs; city, county, state and federal. Even if the programs aren’t advertised, it’s our specialty to find you the maximum options available.
Power Purchase Agreements—Businesses in any industry can convert to solar power without tying up funds in capital investment and having any maintenance costs, all while cutting their electric costs and reducing their carbon footprint. This can be done with a Power Purchase Agreement. With a PPA, we’ll do the design, permitting, financing, installation and on-going maintenance for the solar energy system on your property under a contract of 15 to 20 years. We then sell the electricity you use to you at rates that are lower (never higher) than those available through your local utility. At the end of the contract you may either renew it or cancel it, in which case, we’ll remove the installation.
Work with us! We devote our time to ensuring every commercial client receives the best financing and maximum rebates and incentives available on the market. At Cedar Creek Energy, we stay current on all federal, state and utility incentive program opportunities, and have a number of “green lenders” we can refer you to. Contact us today to learn how we can help you finance your commercial solar system.