What are the different options for financing a solar project?

There are several solar project financing options available to schools, municipalities, and other public entities looking to invest in solar energy. The right financing approach depends on the organization’s budget, financial goals, and state regulations.

Two common approaches to financing solar projects include:

1. Direct Ownership: The organization finances and owns the solar energy system outright. Solar project funding may come from capital budgets, bonds, loans, or other available financing sources.
2. Third-Party Financing: Where permitted, a third-party investor owns and operates the solar system while the organization purchases the electricity or uses the system under a contractual agreement, such as a Power Purchase Agreement (PPA) or lease.

Understanding how to finance solar projects can help public entities reduce upfront costs, manage long-term energy expenses, and select a financing structure that supports their financial goals.

Performance Services can help your organization explore available solutions.