Are you looking for the best business loans for solar energy? This comprehensive list offers more options for you than you can exhaust. Choose one and start your renewable energy journey.
Thinking of installing solar panels at your business? Are you looking for the best business loans for solar energy? This comprehensive list offers more options for you than you can exhaust. Choose one and start your renewable energy journey!
Installing a solar system for your business premises might be very expensive, considering purchase and installation costs. In fact, even though solar power has long-term cost savings, the initial cost is usually very high. And, funding it from your pocket might take a toll on your finances, despite the presence of investment tax credit.
In this light, if you are planning to transition to solar energy, it is advisable to consider commercial solar loans. With the right company, you can get up to 100% funding and save the initial cost of going green. That way, you can shift to green energy and save the planet in a more pocket-friendly manner.
The truth is that commercial solar projects can be massive. And, you need to go for companies with the skills and experience to handle a big project. With that, you won’t have to pay for a system that will disappoint you.
But how do you determine the right lender, especially with so many choices online? Let’s find out!
How to Choose the Best Business Loans for Solar Energy
Determine the different Solar Financing Options
Before making a choice, you need to understand the different financing options for commercial solar. For instance, we have solar loans where the company finances the project, and you own the panels.
You can also do solar leasing, where the company does the installation, repair, and maintenance of the system. With a solar lease, you pay monthly lease payments for the energy you use on your premises. And, there’s is a chance of purchasing the system.
With large commercial solar energy systems, you can opt for a power purchase agreement or an ESA (Energy Service agreement). These agreements allow a financing company to install and maintain the solar system on your property. In exchange, you can use all the energy you want at cheaper rates, for an agreed period, without any upfront costs.
With a PPA, you rent your space for solar installation, then enjoy lower energy rates as agreed. At the end of the contract, the homeowner owns the renewable energy source.
On the other hand, with an ESA, the company installs and maintains the system. But when it comes to monthly payments, the building owner takes part of the savings made due to the cheaper energy source and pays the company. This means that the monthly payments are dependent on savings.
Type of Solar Financing Company
We have different types of solar financing companies. Some companies are directly financing, providing you with the finances to carry out your project. After giving you the funds, you are free to choose your own solar system provider and installer.
On the other hand, we have companies playing both roles – they are the financiers and the installers. This way, besides funding the project, they are also actively involved in carrying out the project.
Always weigh your options and determine the right company for you.
See Related: How Much Does a Solar Battery Cost?
Skills and Experience
It is always advisable to work with a reputable commercial solar financing company. Such companies offer skills and experience, ensuring that the project is financed and completed in the best way.
Also, ensure that the company that you choose is well-versed in your kind of business. For instance, if you want a solar energy system for your farm, consider a commercial solar farm financing company for the job. Since they have experience in your business, they will offer you the best solutions.
Requirements
Solar financing companies have different requirements for businesses to qualify. For instance, some companies only finance businesses with a good credit scores. This means that you certainly should check your credit score first.
Other companies require collateral such as properties before you qualify for a loan. Fortunately, we have commercial solar financing companies that offer 100% financing, and you do not have to pay anything upfront.
See Related: Best Credit Builder Loans
Application and Approval Process
When choosing a company to finance your solar power system, understanding their loan application and approval process is crucial. If the process is simple and fast, this is a good sign. It means that the company is committed to customer service, and they are likely to offer good service.
Delays in the application and approval process might be a warning sign. It might indicate that even your project will take longer once it enters the installation phase.
Most companies promise a fast turnaround of under 90 days, and they should be able to meet this timeline with ease. Good communication and excellent customer service are good signs that the company is committed to its work.
See Related: Best Solar Project Management Software
Best Business Loans for Solar Energy
Now, let’s find out which commercial solar finance companies offer the best business loans for solar.
1. CED Greentech
CED Greentech is a full-service wholesale provider for solar and renewable energy. It is one of the largest electrical companies that we have in North America. And it also specializes in solar financing and installation.
The company has been in the business since 1957, so they have what it takes to design, finance, and sell solar power products. CED Greentech is an innovative solar company, meaning that besides financing, they also provide the necessary technical services for clients.
To help you save money, the company enables you to negotiate with some of the renowned global manufacturers of solar supplies. Also, they have their own inventory available on site, so you can choose from what they already have in stock.
Their dedicated team is a highlight when it comes to after-sale services. Their team of professionals with vast engineering experience ensures every installation project is successful.
See related: Solar PACE Program: Is it a Legit Financing Source?
2. Coldwell Solar
Coldwell Solar is a California-based solar company founded in 1986. They are known for their experience in the design, engineering, and construction of solar systems. Some of their biggest clients are businesses such as farms, schools, manufacturers, and owners of commercial buildings.
Since they understand that switching to solar can be capital intensive, they help businesses to go green with zero initial cost.
The best thing about using Coldwell Solar for solar system financing is that you get tax incentives. They offer design and engineering work on your premises. And they are also known for solar loans, power purchase agreements, and solar lease projects.
If you are planning to go green, all you have to do is to make an inquiry, and a technician will get back to you. They have a fast turnaround time, ensuring you can start using solar energy in your business pretty fast.
3. Duke Energy
Duke Energy is known for helping companies attain their sustainable goals through solar systems financing. They offer 100% financing to businesses, helping them switch to solar at zero initial cost.
After being in the industry for over two decades, the company has offered solar solutions to different businesses across the country. And before considering solar energy, they will offer you the different options to help you make an informed decision.
During the financing process, Duke Energy offers you a solar purchase agreement and renewable energy credits. They are quite flexible and offer businesses both short and long-term solar financing options to meet their needs.
If you are looking for a better return on your solar investment, this is the right solar company for you. They have in-house solar financing experts who will help you with the best financing option for your business.
See Related: Best Energy Credit Software Programs
4. Sustainable Capital Finance (SCF)
Sustainable Capital Finance (SCF) is known for offering businesses a variety of solar financing packages. They are a third-party financier for commercial projects. And they work closely with solar integrators and energy consumers to give the best solar solutions for businesses.
Some of their most common packages include:
- Solar PPAS and solar for municipalities
- Community projects
- Solar for C&I
They pride themselves on offering businesses solar system solutions at zero cost. Also, you can get their solar services anywhere in the united states.
SCF’s goal as a company is to help businesses save costs by offering affordable and clean energy to lower utility bills. Therefore, after the installation and the system is running smoothly, they have a cloud-based platform that makes the monthly solar lease contributions.
The company has a standardized due diligence and transaction process, so they complete most of their solar projects in under 90 days.
See Related: Ways to Start Investing in Small Business
5. LightStream Financial
LightStream Financial is an excellent leader when it comes to offering solar loans. They are purely solar financiers, so they do not do any design or solar installation. To qualify for the loan, you must live in the United States and have a credit score of at least 660.
Since they are a solar financing company, they disburse money into your account, and you are responsible for the rest. You’ll need to find a solar design company as well as the care and maintenance of the solar systems.
They are considered the fastest solar financing company as you can get money within 24 hours once approved. Their terms are also flexible, and you can get a short-term loan of 2 years or a long one of 12 years – this depends on your needs.
Fortunately, there are no fees and penalties involved, and you can even use your property as collateral when you want a secured loan.
Read our full LightStream review to find out more about how the financing process works.
6. GoodLeap
GoodLeap is involved in funding solar systems and energy storage. They offer fixed rates to their clients, and you can find them anywhere in the United States. GoodLeap is a direct lending company, so they are not involved in installation or any technical aspect of solar design.
They are known for offering among the best repayment terms and rates. And since their goal is to drive sustainability in businesses, they offer finance energy upgrades, besides offering solar loans. The lender will finance energy-efficient roofing, windows, and even gadgets.
When you go to their website, you will find hundreds of solar vendors and installers to help you make the best decision for your business.
To qualify for the loan, you need to have a credit score of at least 600. More good news is that they have a flexible repayment period of 7 to 25 years.
See Related: 7 Best Solar Hybrid Systems
7. Pope Energy
Pope Energy has been offering solar financing for many years, which means they have the expertise and network cornered. Unfortunately, you can only get their services if you live in New York, New England, New Hampshire, Connecticut, Massachusetts, Vermont, and Rhode Island.
They are considered among the best solar financing companies due to their variety of services, from agricultural solar to large-scale solar canopies. Together with financing solar for businesses, they have a big team of experts that help make every project successful.
The team is involved in different aspects of your solar project, such as design, sourcing, installation, and even handling all the paperwork.
This is the best company to consider if you are clueless about where to start with solar energy. They will make sure that you have the best solar system since, besides financing, they are involved in the entire installation process.
8. SunRenu
SunRenu offers solar financing to Arizona and some neighboring states. It started its operations in 2008 in the Phoenix metropolitan area but has grown to become an industry leader. After being in the business for over a decade, they have extensive knowledge and expertise in solar funding.
The company’s goal is to help businesses save money by offering a short-term return on investment for solar systems. They specialize in the installation of small commercial solar systems as well as financing. Depending on your needs, SunRenu offers you different solar financing packages such as solar leasing, solar loans, and solar PPA.
They pride themselves on offering timely solar installation to meet your expectations. SunRenu also has some of the best personnel, ensuring success in every project.
See Related: List of 55 Top Renewable Energy Private Equity Firms
9. SunRun
SunRun offers competitive solar financing for businesses around the United States. They stand out for offering 100% financing, making it easier for you to get solar energy for your business at zero initial cost.
Also, apart from financing your solar project, they are involved in design and installation. Even better, they will handle the repair and maintenance aspects of the system for about 20 years.
The lender has an online tool that helps you determine whether you qualify for a loan. The product selector tool works in minutes, helping you make the right solar decisions fast. Using the tool, you can also determine whether you need a monthly plan or a system loan.
If you are not sure about your solar energy needs, you can always get in touch with a solar expert for further explanation. Some of their products include solar loans, solar leases, and solar PPAS.
10. SunPower
SunPower, through its partner, Technology Credit Union, is a good option for businesses looking for commercial solar financing. However, they are not available in all states in the United States, so you have to confirm with them first.
The company only offers solar financing, but they will help you find the best installer for your project. And after finding the best installer, they advise you on the best financing options available.
When it comes to solar loans, you need to have a credit score of at least 640. From here, they’ll offer a 15-year repayment package with a rate of 0.99% per annum or a 25-year package with a rate of 1.99%.
As for solar leasing, they have a 20-year contract. During the 20-year period, they are involved in carrying out any repairs and maintenance. However, you have to pay fixed monthly rates, although you can get net metering profits from the company.
See Related: Tips for Buying a House with Solar Panels
11. SolarCraft Clean Energy Solutions
If you are planning to transition to solar, SolarCraft Clean Energy Solutions is another viable financing company to consider. The company has been in the business for over 35 years, offering residents of California solar energy solutions.
They offer solar loans and solar leases to companies interested in green energy solutions. And their goal is to help businesses save money, protect the environment, and also protect the local economy.
For businesses that don’t like being involved in the repair and maintenance of their solar systems, the company offers a contract of 15 to 20 years. They also have loans for businesses looking for more friendly terms. Once the loan is approved, they disburse the funds fast to facilitate the solar design and installation process.
If you want to use SolarCraft Clean Energy Solutions for solar financing, you can easily fill out a form on their website. After that, an expert will get back to you with a friendly quote.
12. SBA 504 Green Loan Program
Besides the many commercial financing banks, credit unions, and companies, we also have a grant program for the same. The SBA 504 is a small businesses’ incentive program to help them advance their sustainability goals through energy-efficient buildings and renewable energy solutions.
With this program, you can get funding of up to $5 million per project or aggregate funding of up to $16.5 million. All you need is to meet their qualifying criteria, and you are good to go.
Related Resources