Sol Systems, the oldest and largest solar renewable energy credit (SREC) aggregator in the U.S., recently announced a new financing solution for commercial-size solar energy systems called Sol Bridge. The bridge financing solves a problem that many prospective solar owners face: commercial-sized solar energy systems have high capital costs (typically more than $100,000), and system owners must pay for the system costs several months before they receive their federal and state solar incentives or solar renewable energy credit (SREC) payments. Because most businesses have limited cash and must reserve their capital for business-related expenses and investments, owning a solar energy system is a distant possibility.
Sol Bridge addresses this problem by providing a 90 day cash advance to system owners for the 30% federal tax grant and any applicable state incentives. This option allows business owners to go solar without tying up capital, while still retaining ownership of their system and all the benefits including SREC payments and electricity bill savings.
The cash advance is provided upon system completion and can be assigned to the solar installer, so that the installer reduces the customer’s payment amounts accordingly. Sol Bridge and the corresponding loan fees are due after 90 days, however, the loan fees can be wrapped into the total installation costs and therefore included in the amount that will be refunded upon receipt of the federal grant and state rebates.
In addition, Sol Bridge can be paired with the Sol Upfront SREC payment option which allows system owners to pre-sell the future SRECs to Sol Systems in exchange for a one-time lump-sum payment. When the Sol Bridge and Sol Upfront options are combined, the system owner is responsible for merely 10-30% of the remaining system costs; moreover, the business owner reaps the full benefits of their electricity savings because there is no ongoing solar lease fee or PPA payments.
About Sol Systems:
Sol Systems is a solar energy finance and development firm that was built on the principle that solar energy should be an economically viable energy solution. With thousands of customers and hundreds of partners throughout the United States, Sol Systems is the largest and oldest SREC aggregator. We provide homeowners, businesses, solar installers, and developers with sophisticated financing solutions that help make solar energy more affordable. Sol Systems also helps energy suppliers and utilities manage and meet their solar RPS requirements efficiently by providing them with access to diverse portfolios of SRECs. For more information, please visit www.solsystemscompany.com.