Answer: The three (3) most popular ways our customers are financing their system are 1. Buying/Purchasing 2. Leasing and 3. Power Purchase Agreements (PPA).
At Technical Specialty Solutions, each of our projects are tailored around our individual clients needs, and financing their system is no different. Each of the three alternatives we offer have advantages and some might be right for your project. To that end, we have outlined the thee (3) alternatives to assist you in making your decision.
1. Buy/Purchasing your Solar or Backup Power System means paying for it up front or financing your purchase through a bank loan or one of our financing partners. You can purchase the system directly from Technical Specialty Solutions. By purchasing the system you will qualify for the 26% Federal Investment Tax Credit and depending the type of financing, might also be able to write-off the interest portion of the loan on your taxes.
2. Leasing allows you to “rent" the Solar System for a set period-of- time. Generally, you pay a fixed monthly rate no matter how much energy the system produces each month.
3. PPA's, are very similar to Leasing, a third party owns and maintains the renewable energy system on your behalf. Typically, you pay for the electricity generated at a rate per kilowatt-hour (kWh) specified in your agreement.
Answer: Property Assessed Clean Energy (PACE), is affordable financing that allows property owners to pay for upgrades that increase energy efficiency, harness renewable energy, conserve water and protect against storms.
Is PACE a loan?Despite some similarities, PACE isn’t a loan. PACE financing does provide you with upfront money which you have to repay over time (with a low interest rate). But because the financing is attached to the property and repaid through your property taxes, it’s classified as a property assessment instead of a loan.
Does the interest paid on a PACE loan qualify for a tax deduction? Generally speaking; they do. Most customers will qualify for the tax deduction based on the interest costs of the loan. Please consult your tax consultant for the guidelines and how they apply to your person tax situation.
Is PACE a government incentive or discount program?No. However, PACE programs are made possible by state legislation and approved by local governments. However, PACE financing is not a government incentive or subsidy program. PACE does not provide any special discounts, government funding, or payment forgiveness to those who opt to use it.
What determines my eligibility for PACE?PACE eligibility is based on a variety of factors, primarily the amount of equity you have in your home, your ability to repay the assessment, and your mortgage payment history.
What type of Projects can PACE finance?Virtually all energy efficiency, water efficiency and renewable energy projects qualify for PACE financing. This includes Solar, Heating & Air Conditioning, Roofing, Doors, Windows and Irrigation Projects.
Why is PACE a good financing option?PACE is an innovative form of financing that offers a range of benefits not available through traditional financing options and the interests costs are typically tax deductible, and the obligation is usually transferable if the property is sold.
At Technical Specialty Solutions, Inc., we are proud to represent two (2) of the best PACE providers on the market. They are YGreen Energy and Renovate America. Both have great programs, service, and rates for our customer’s in the following Counties: