Solar FAQs

There are several ways to fund your solar projects. The best solution for you will largely depend on the type of project and organization. However, there are three primary alternatives.  Direct purchase and Power Purchase Agreement (PPA), and Tax-Exempt Muncipal Leases (govt. entities only).

Direct purchase allows you  to own the system outright. You take all the benefits and risks of owning the system. We take advantage of income tax credits (ITC), adders, and utilize the federal direct-pay option to cover anywhere from 30-70% of project costs. Your organization can elect to pay for any remaining costs directly or work with our network of public and green lenders to identify a low-cost capital to cover those gaps. 

A Power Purchase Agreement (PPA) is a service contract where a developer installs, owns, and operates a renewable energy system on a property, and the property owner agrees to buy the energy produced at a fixed rate over a set period. This allows the owner to access clean energy with little to no upfront cost. PPAs are commonly used for solar energy projects by municipalities and businesses.

Tax-exempt municipal leases are used by public entities to acquire equipment or fund projects without needing to issue bonds. This structure is commonly used to finance essential public projects, such as infrastructure or energy improvements, while maintaining flexible ownership options for the municipality.

We work with closely your team to determine the best alternative for you.

The Direct Purchase option takes advantage of existing income tax credits (ITC) and adders thus making the economics very similar to that of large residential projects. However, tax-exempt entities are eligible to receive these tax credits as direct payment from the IRS. We work with our partners to secure these on your behalf and identify additional capital to cover gaps when necessary.

A Power Purchase Agreement (PPA) is a service contract where a developer installs, owns, and operates a renewable energy system on a property, and the property owner agrees to buy the energy produced at a fixed rate over a set period. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system.

PPAs typically range from 10 to 25 years and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to extend the PPA, have the developer remove the system or choose to buy the solar energy system from the developer.

CEA works closely with developers, utility providers, and your team to ensure compliance with all local and state regulations and seamless integration of your system.

This will vary depending on the terms of your PPA. In most cases you can terminate the contract anytime by paying the termination fee or you can buy out the solar array at fair market value at the time periods designated in your contract. The termination fee is also prescribed in the PPA agreement for each year of the agreement. The fair market value is based on the value of power production over time and starts close to the project cost (less incentives), and tapers down as the contract period runs out.

Public bid may be required at the time of buyout for government bodies. We work closely with your team to ensure compliance with all applicable state statues.