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How Much Does a Solar Power System Cost?

Flexible financing to suit every business

SunGreen is happy to help you arrange the financing you need. We help you to achieve sustainability goals within your budget.

We get our commercial clients the best loan, lease or power purchase agreement for them. We work with many third parties that provide valuable services to meet that goal. SunGreen is not wedded to any financing partner. SunGreen gets no kickbacks or special arrangements.

Our first priority is getting you the best deal.

You have many financing options.  There are many incentives that will enable your system to pay for itself even sooner. We're happy to answer questions anytime about what you qualify for.

Incentives and Benefits

The federal Solar Investment Tax Credit gives you credit on your income tax return.  This credit can be as much as 30% of the price of your system. 

The California property tax exclusion for solar enables further benefits for your system.  This exclusion can increase the value of your property without raising your property taxes.

Your project may also qualify for accelerated federal and state depreciation.

We'll help you take advantage of every incentive available to you.

Financial Benefits Chart

Commercial Solar Financing and Purchase Options

Turnkey Purchase
• Customer pays for 100% of system
• Customer owns system
• Customer utilizes tax benefits
• Customer gets utility savings
• ROI: system typically pays for itself in 3-5 years

Operating Lease
• Bank owns and pays for 100% of system
• Bank utilizes tax benefits
• Customer gets utility savings
• ROI: immediate
• Off-balance sheet

Capital Lease
• Bank pays for 100% of system
• Customer owns system
• Customer utilizes tax benefits
• Customer gets utility savings
• ROI: immediate
• Similar to a loan

PPA (Power Purchase Agreement)
• Investor (3rd party) owns and maintains system
• Investor (3rd party) utilizes all incentives
• Customer locks in predictable electricity rate for 20 years
• No O&M or ongoing expenses
• ROI: immediate
• Customer pays only for actual energy produced

PACE (Property Assessed Clean Energy)
• Customer borrows via municipal program and repays via property tax bill
• Customer owns system
• Interest portion of payments are tax deductible
• ROI: immediate
• Non-recourse financing
• Off-balance sheet

Side-by-Side Comparison


Power Purchase Agreement (PPA)

With a PPA, a third party owns the system on your building. You lock in a predictable rate that's cheaper than power from the grid.

  • 0 upfront costs.
  • You pay a flat rate for the electricity from your system for a term of 10-20 years. This rate may be fixed or rise on a set schedule.
  • Must meet lender requirements including qualifying credit score and financials.
  • You are guaranteed a certain level of energy production. You pay only for the actual kWh produced.
  • You use the power that the system generates.
  • You do not own or maintain the system; the third party does.
  • You do not receive the tax credit; the third party does.
  • You receive protection against rising energy prices.
  • At the end of the term you may renew the agreement. You may also buy the system (for fair market or residual value) or, have the system removed.

PPA can be a good option for those who don't have the resources for an outright sale. PPA can also be a good option for those who prefer to have someone else own and maintain their system. Such an arrangement can be simpler. As with a lease, the amount of your new monthly energy bill (including your monthly PPA payment) is likely to be less than your existing energy bill.   

PACE Financing

Property Assessed Clean Energy (PACE) financing programs offer loans for commercial energy products (not just solar). These are products  permanently affixed to the property.

  • Up to 100% financing (so $0 down is possible).
  • Low fixed interest rate for up to 20 years.
  • No credit score requirements.
  • You make payments through your County property tax bill.
  • The interest is tax deductible.
  • The loan is tied to your building, not you. If the property is sold before the PACE assessment (the loan) is paid in full, the remaining payments are passed on to the new property owner.
  • You own the system and the energy it produces.
  • You maintain the system.
  • You receive the tax credit.
  • You are protected against rising energy prices.

SunGreen Systems has helped many home and business owners take advantage of PACE financing.