Commercial Financing and Rebates

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.

Green Lenders

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.

Tax Credits, Rebates and Discounts…Oh My!

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.

This is the latest post in our “FAQs About Solar” series. View other FAQs on our solar energy blog. 

There are numerous incentives out there for commercial solar in Minnesota. Not only can you see a great return on investment, but you’re also sending a message to your employees and your customers that you’re committed to sustainability. And what business doesn’t want to cut their overhead while helping to save the planet?

Minnesota businesses, local governments, schools, and other organizations can see huge savings by switching from grid power to solar. If you’re considering commercial solar, this is a good place to start. Read on for answers to some of the most commonly asked questions about financing a commercial solar energy system.

How much can a solar energy system save me?

One of the biggest motivators we hear about from new commercial and residential solar clients is the money they can save on solar. A solar energy system can save the user thousands of dollars on their energy bill each year, and some commercial clients will save six figures over the lifetime of the system.

These commercial case studies illustrate just how much you can expect to save with the installation of a solar energy system. You can see that companies large and small will all reap the rewards of renewable energy within five or ten years of the panels’ installation – a great ROI considering many systems last 25 years or longer with routine maintenance!

Do you have financing available?

Cedar Creek Energy has long-standing, trustworthy relationships with a wide variety of solar lenders in Minnesota and throughout the nation. We’re happy to help you consider your options and choose the best financing for your situation. We’ll take a look at what you’re trying to accomplish and the ROI of your system, and then we connect with one of the green energy lenders.

Our team knows about a variety of financing programs on the city, county, state, and federal levels available right now for you – even the programs that are not advertised or listed seemingly anywhere. We’ll tell you exactly what’s available, so you won’t miss out.

What incentives/credits/rebates are available?

There is currently a federal rebate called the Federal Investment Tax Credit, which pays back 26% of your system’s cost to you in the form of a rebate on that year’s taxes. The ITC was originally established back in 2005 by the Energy Policy Act. It was set to expire in 2007, but Congress has decided to extend its expiration date several times due to its popularity. It will be available to new solar energy users until 2021. However, the percentage of the project you’re permitted to deduct has been decreasing since the end of last year. If you’re interested in completing a solar project in 2020 before the rebate percentage drops even further, we should get started right away.

There are also rebates at the state level, such as Minnesota Power’s Solar Sense Program. Some utility companies, such as Xcel Energy, may offer rebates for the use of solar energy, too. There are different options for commercial and residential projects; Cedar Creek Energy keeps track of both to ensure our commercial clients get the best incentives possible.

Cedar Creek Energy’s Commercial Solar Energy Installers

You’ll save money on your initial solar investment and optimize ROI just by working with a solar energy company that can help you find the best financing and rebate options. Cedar Creek Energy has completed hundreds of solar installations of all shapes and sizes, so we know how to make the most of each client’s budget and space. We offer comprehensive customized clean energy opportunities, from turnkey commercial solar energy systems to handpicked engineering, procurement, and construction services.

If you would like more information about how a commercial solar system will benefit your business, contact Cedar Creek Energy for a free solar energy audit.

This is the latest post in our “FAQs About Solar” series. View other FAQs on our solar energy blog. 

Many new commercial and residential solar clients cite the money they’ll save on solar as their biggest motivators to make the switch. A solar energy system can save the client thousands of dollars on their energy bill each year. Over the system’s lifespan, some commercial clients will save six figures.

These savings make solar energy a compelling prospect, but what about upfront costs? Financing and rebates make installing solar smart and affordable. There are several tax credits on the federal and state level that can decrease the initial cost of a system. The solar investment tax credit, at 26% in 2020 is a big one to note since it will decrease in the years ahead and expire after 2021. In addition to rebates, affordable financing allows you to pay off your system at a lower monthly cost than your current utility bills.

How much does it cost to install solar panels?

The price of a solar energy system does vary based on its size, where it’s installed, and the rebates you receive. A commercial system may have a higher upfront cost because it will generally be a more extensive system than one installed on a single-family home. However, we design all our systems for a quick ROI. You will be breaking even in no time, and eventually, you may be able to sell excess energy from your system for a profit through a process called net metering.

What is the payback/ROI?

The payback period of a solar energy system is the amount of time it’ll take to completely pay it off through savings on your electricity bill. This payback is calculated by taking the total cost to install the system, then subtracting solar incentives and monthly electric bill savings until the total cost has been paid off.

At Cedar Creek Energy, we design every solar energy power system to give optimal payback and a generous return rate on your investment. Solar energy systems have a quick payback between five and eight years, which means that your system could be completely paid off within a decade and make you a profit for years to come.

How long does a solar energy system last?

Most solar components come with a 25-year warranty, but that doesn’t mean your system won’t last longer. If one component needs to be repaired or replaced, our team can quickly take care of it to get your system back up and running. In fact, we monitor your system continually, making sure that it is always performing optimally. Our team will alert you if a repair is needed, and a team member will immediately take care of the issue. You’ll soon realize that you can rely on your system for years to come.

Getting Started with A Minnesota Solar Energy Company

For assistance with switching your home or business over to solar energy, contact Cedar Creek Energy. Our team of solar engineers, project managers, and installers will walk you through the entire process, from conducting an initial energy audit through the first time you power up your new solar array. We are proud to work with the most proven and reputable American manufacturers to ensure the highest quality materials and to support our country’s economy during the pandemic. Cedar Creek Energy can be reached at (763) 432-5261.

After you’ve seen the benefits of solar energy firsthand, Cedar Creek Energy is offering yet another financial incentive for clients to refer a friend: a $250 referral credit. Refer a new client to Cedar Creek Energy, and you’ll receive a $250 Visa gift card once their project has been completed. You and your friend will have long-lasting renewable energy you can rely on – and enjoy sharing your production monitor results.