Commercial Solar Operating Lease
Helio Micro Utility's Commercial Solar Operating Lease provides 100% financing with payments totaling 85% of the purchase price
Helio Micro Utility, the leading independent energy advisory serving solar developers, EPCs and electrical contractors, has unveiled an ITC-friendly operating lease for commercial and industrial solar projects.
“Our Commercial Solar Lease provides a much needed alternative for financing smaller commercial solar projects sized 10kW to 1MW,” said Tom Millhoff, President of Helio Micro Utility. “We structure a lot of Power Purchase Agreements, but smaller projects can’t support the PPA’s transaction and ownership costs. PACE and other financing forms can be expensive and strand the tax benefits. The Helio Commercial Solar Lease puts a tax equity investor behind a simple operating lease structure to minimize costs and deliver 100% project financing for about 85% of the project’s purchase price. The solar installer gets a fair margin and we can provide a development fee to our project origination partners. Everyone wins.”
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Helio Commercial Solar Lease Customers Benefit From:
- A reduction in the EPC payment price and negative effective interest rates
- Significantly increased cash flows
- Protection from utility price inflation and volatility
- Lower operating expenses and increased property valuation
- Retention of SRECs and the environmental attributes of solar
Lease terms range from 5 to 7 years, and end-of-term residual values may also be financed and depreciated. Eligible solar energy off-takers must be for-profit entities with solid financials.
Director of Project Finance Tom Selden expects to launch a similar leasing product for Energy Storage soon. “If the Energy Storage Tax Incentive and Deployment Act passes, our Commercial Storage Lease will be the killer financing app. And even if it doesn’t, we expect to address underwriter concerns and deliver economic financing in high-demand charge territories like Southern California Edison.”