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BrighterFinance

What is BrighterFinance?

BrighterFinance is Brightergy’s financing option that allows for customer ownership. For example, we will sell you a solar system (you own it) while financing a portion of the purchase price for you.

Who gets the incentives?

We typically have our BrighterFinance customers assign Brightergy the 30% Treasury Grant and local utility rebate. However, since our BrighterFinance program allows for customer ownership you will be able to own and depreciate the solar system. In 2011, you can write off 100% of the solar system in the first year. For instance, if you pay $100,000 for a solar system and are in the 35% federal tax bracket this can have a $35,000 economic benefit to your company. The customer also typically retains ownership of any REC’s (Renewable Energy Credits) generated.

What interest rate do you charge?

Like any lender we prefer to loan money to customers with good credit that are likely to pay us back. We typically offer very competitive interest rates. Right now our rates range from 3-6%.

How much are the monthly payments?

The monthly payments depend on how much you finance, the interest rate, and term of the amount financed. We typically structure BrighterFinance plans so your monthly payment is less than what you would be paying the utility company for the amount of electricity generated.

BrighterLease

What is BrighterLease?

BrighterLease is our solar leasing program where we maintain ownership of the solar system and lease it to you for a fixed monthly payment. We typically structure the lease for a term of 15-20 years and come up with a monthly payment that is less than what you would be paying the utility company for the same amount of electricity.

What happens at the end of the lease term?

You will have a few options such as: having Brightergy remove your equipment, purchasing your system at fair market value, or extending your lease.

What happens if we move?

Your lease will transfer to the new owner or you have the option to buy out the lease.

What are the ongoing responsibilities for a solar lease?

There are no maintenance obligations, all you need to do is continue paying your monthly payment.

How much are my lease payments?

Lease payments depend on the system size but your monthly payments will typically be greater than 15% below what you would be paying the utility company for the same amount of electricity.

30% Treasury Grant

How do you determine the amount eligible for the 30% Treasury Grant?

The entire cost of your solar system is typically eligible for the 30% Treasury Grant.  You can typically include other construction related costs necessary to install your solar system (ie. structural support)

Who is and is not eligible for the 30% Treasury Grant?

Owners of a “solar property” are eligible to apply.    An owner may be an individual, household, partnership, and/or business entity that owns the solar power system.

The following are NOT eligible: governments, counties and municipalities, public schools, 501(c) non-profits, and other tax exempt entities.

How long does it take to get the 30% Treasury Grant?

It typically takes 45-60 days from the time you submit a completed application to Treasury. In order to submit a completed application you will need a “permission to operate” letter from your local utility. This is usually what causes any delays. Brightergy handles all the Treasury Grant applications for our clients.

What is the 30% Treasury Grant?

The US Department of Energy and the US Treasury will pay 30% of the cost of a new solar energy installation started and/or completed in 2011. The American Recovery and Reinvestment Act of 2009 extended the period in which the tax credit can be used as a grant. If you start a solar installation prior to December 31, 2011 you will qualify to get a 30% cash grant rather than a tax credit.

The grant is often referred to as a Section 1603 grant.

Solar Economics

What is bonus depreciation for solar property?

Depreciation is defined as the “reduction in the value of an asset with the passage of time”. In other words, businesses can deduct the cost of a capital investment over a certain period of time (depreciable life).

The 2010 Tax Act enacted 100% bonus depreciation which is available for new solar property acquired and placed in service during the period beginning September 8, 2010 and ending December 31, 2011. Essentially, this allows a taxpayer to claim an immediate deduction against income of all or (in the case of property on which the cash grant or a tax credit has been claimed) 85% of the cost of the property.  Depreciation is a deduction against income so the taxpayer must have sufficient income in order to fully use this incentive.

This “100% expensing” applies only to new property and not used equipment. The law also provides for bonus depreciation in 2012 but at a lower rate of 50%.  Bonus depreciation can create a net operating loss (“NOL”) that may be carried back to the two prior tax years and provide an immediate tax refund. An NOL may also be carried forward for 20 years.

What is the payback period for solar?

The three primary variables that determine your payback period are: utility prices, cost of system, and available incentives.

For commercial systems, customers can realize a payback as soon as year 1 when utilizing our BrighterFinance program. The payback is typically around 5 years for our commercial customers when paying cash. *

Residential customers typically see a payback in 8-12 years. Residential payback periods are not as fast as commercial clients because individuals cannot take advantage of depreciation.

*Assumes customer can take advantage of the depreciation benefits.

What incentives are available?

The incentives depend on your local market. Check out our solar incentives page where we break it down by the areas we serve.
Most incentive programs have limited funds or an expiration date so if you are comfortable with the current economic case for solar, you should act quick.

How much paperwork is involved with all the incentives?

A lot! No need to worry though, Brightergy will take care of it for you.

What are the options to finance my system?

You have a few options, depending on where you live:

1. BrighterFinance: You own the system and we finance a portion. Available for all our clients.

2. BrighterLease: We own the system and lease it to you for a fixed monthly payment. Available for all our clients.

3. BrighterPPA: We own the system and sell you the electricity the solar system produces. Only available for our East Coast clients.

Will solar increase the value of my home/ property?

Absolutely! Recent studies show that energy savings adds quite a bit of value to your property. Solar savings are very easy to prove too. According to the Appraisal Journal, for every $1,000 saved in annual energy costs, $20,000 is added to the value of the property.

BrighterPPA

Why cant you offer PPA’s in every market?

Each state has different laws. For example, in Missouri where utility companies are regulated and solar policy is not as strong as some states, anyone who wants to sell power must be a regulated utility, effectively making solar PPA’s impractical. As such, PPA’s are not common.

How are the PPA’s financed?

Solar PPAs are financed through normal bank debt and “tax equity” investors who benefit from various federal and state incentives. By bringing together multiple banks and tax equity investors, we are able to obtain a lower cost of capital and translate that into lower PPA rates for our customers.

What kind or organizations are PPA’s best for?

Typically someone that is going to occupy their building for a long time. The most common PPA customers are municipalities, REIT’s, utilities, and larger building owners.

How will I know how much energy the solar system produces?

We use very reliable solar monitoring software and will give you real time access to system production information.

Do we have to own the building?

No, you can be a tenant, preferably under a long term lease.

What is the minimum size system for a solar PPA?

Typically the minimum size for a commercial PPA is a 100kw system, which would require about 10,000 sq ft of rooftop space and annual usage of at least 125,000 kwh’s.

What if I want to purchase the system?

You can purchase the system at the end of year 6 for a predetermined price or you can also purchase the system at fair market value at the end of the PPA term.

What if I want to install a new roof when the solar panels are on my roof?

Each PPA typically contains language that allows the building owner to do a re-roof during the term of the PPA. This needs to be negotiated and each deal is different.

Who maintains the system?

Brightergy handles 100% of the ongoing maintenance and monitoring. All we need from you is to pay your solar energy bill each month.

Can I get a annual payment for letting you use my roof?

Maybe, each situation is different so please contact us to discuss your situation.

What happens if the system gets damaged or stops producing electricity?

Although this probably will not happen, you would not be liable for any of the loss since you only pay for the electricity that your system produces.

What are typical terms for a PPA?

The most common term is 15 years. The rates vary based on state but are typically less than what you would otherwise pay the traditional utility company. For example, a PPA in Massachusetts might only cost 10 cents per kwh when the retail price is closer to 20 cents per kwh. Each PPA typically has a 1-2% annual escalator to keep up with inflation.

What type of credit is required for a PPA?

Typically, PPA customers need to be able to provide audited financial statements or have a debt rating of BBB or better. The system owner will want to be confident you are going to continue making the energy payments for the term of the PPA.

General

What is net-metering?

Almost all utilities are required by law to offer net metering, which effectively allows you to bank your solar energy until you need it. Net metering allows you to send back any excess generation you do not use onto the grid.

Net metering lasts for a whole year, so you can build credit in the summer for those darker winter days. It measures the difference between the electricity you buy from the utility and the electricity you generate with your solar electric system.

When you are making more electricity than you are using, perhaps on sunny summer days, your extra electricity automatically gets metered back to the utility grid for use at a later date. Net metering allows you to use the electric utility grid like a bank account. You can put electricity into it that you don’t use immediately and you can withdraw the same amount later on at no net cost to you.

 

How much energy will my system produce?

Your kwh production will depend on several variables: amount of sunlight, size of system, and panel efficiency. A good rule of thumb for the Midwest is 1,350 kwh/ yr for each kw. In other words, a 25kw system will produce approximately 33,750 kwh/ yr or 2,813 kwh/mo.

What if my roof gets a lot of shade?

Shade reduces the amount of sunlight your solar panels receive and consequently reduces the electricity your system will produce. Our solar design team will conduct a shade analysis and work to position your panels where they can get maximum sun exposure. However, on occasion, a roof may be too shady to make solar feasible.

What happens when it is cloudy or at night when there is no sun?

The amount of energy your solar system generates is directly attributed to the amount of sunlight it gets. As a result, it will produce slightly less electricity when it is cloudy. Surprisingly, the sun shines through the clouds and still produces electricity though.

Your solar system will be connected to the utility grid so you can draw energy from the grid when your solar system is not producing solar energy. You will never experience any power interruptions because of solar.

What size system do I need?

The size of your solar energy system will depend on several variables: utility usage, size of roof, shading, budget, and your local market. We typically install 3-10kw for residential homes and 20-100kw systems for commercial buildings. A lot of times, the system size is dictated by the state incentives. For example, in Missouri, rebates are capped at 25kw, per meter. As a result, most commercial systems are 25kw. In our East Coast markets commercial systems are usually much larger since the cap is typically >1MW.

What about my flat commercial rooftop – how do you attach the panels?

Most of our commercial installations are self-ballasted, meaning they are weighted using no attachments.  We engineer the tilt to be slightly lower so there is no lift-off in the wind and of course ensure your roof is structurally sound enough to handle it.

 

Do I need batteries?

99% of the time the answer is No. Battery systems are typically expensive and only make sense for buildings in very remote locations far from the utility grid. Our systems are typically connected to the grid so you always have a reliable power source.

What percentage of my energy usage will solar panels provide?

That depends on how much energy you use, your project budget and the available roof or ground space.  In general, you can expect to offset 10-30% or more of your bill.  If your home or business is very energy efficient, you can expect more.  Our Solar Specialists will provide a complete analysis of your particular situation.

Will my Homeowner’s Association allow solar panels?

Usually it is fine, but you’ll need to check.  Sometimes there are restrictions on what can be placed on the street facing side of the home.  We are happy to help educate your HOA about solar.  Most restrictions do not hold up in court.

What direction should solar panels face?

Solar panels are most efficient when they are perpendicular to the sun’s rays.  The best angle would be about your latitude (plus or minus a few degrees) and the panels would follow (track) the sun during the day for the most efficiency.  For practical purposes, we usually recommend fixed tilt arrays pointed as close to true south as possible.  Tracking the sun adds up-front cost and maintenance later on.  Efficiency gains are usually not great enough to make up for these extra costs.

Should I install a wind turbine or solar panels?

After many years of experience, we have come to the conclusion that in most cases – solar is the best solution.  Solar panels provide more power at a lower price in almost every location.  They have no moving parts and 25 year power production warranties vs. 5 year warranties for most turbines.  Many of our utilities also offer extra incentives for solar, but not for wind.

Will a solar array increase my insurance rates?

It depends on the size – most homeowners will pay nothing more.    Larger commercial installations may see an increase – check with your carrier.

What about hail storms?

Solar panels are tested and certified to withstand hail using tempered glass.   If a panel is ever damaged, it is covered by your commercial or homeowners insurance – we’ll replace it!

How does solar help the environment?

Solar pv systems reduce the demand for dirty fossil fuels, thereby reducing pollutants and CO2 emissions.

Is solar electricity really a good investment?

Yes. Over the lifetime of the system you will realize significant savings. After incentives, most systems pay for themselves within 10 years. After that, you have free energy for the life of the system.

Do I need a new roof before solar panels can be installed?

No, most systems do not require a new roof prior to installation. However, because solar panels have an expected life in excess of 30 years roofs need to be in decent condition since it does not make sense to remove and reinstall the panels after only a few years. After the panels are in place, they will greatly reduce the wear on the roof by blocking ultraviolet (UV) rays, snow and ice from striking the roof.

Some solar systems have received IRS rulings that allow you to receive a 30% Treasury Grant for the portion of a roof where solar is installed. In other words, if you install an eligible solar system over 50% of your roof you will qualify to receive a 30% Treasury Grant on half or the cost of your new roof.

What happens if the panels get covered by snow?

Solar electric panels need sunshine to generate power. While some sun does make it through several inches of snow, little electricity is generated when the panels are covered with anything. However, because solar panels operate at a much warmer temperature than the outside air, the snow will melt off of your system and your system can continue generating electricity.

How much weight does a solar pv system add to the roof?

A system typically adds 3-4 pounds per sq ft so 95% of roofs will be able to support solar. We have our structural engineer evaluate each roof before we will install a system.

What kind of maintenance is required?

Luckily, solar PV systems require very little maintenance since they have no moving parts. Rainfall typically keeps solar panels pretty clean but you should rinse them off with a hose if there is a drought. A good rule of thumb for cleaning your panels is you should do so if there is a lot of dust or pollen on your car.

How long will a solar system last?

Most solar panel manufacturers have a 25 year warranty. Most inverters carry a 10 year warranty. There are solar pv systems that were installed in the 70’s that are still around today! Solar is proven and reliable.

How do solar photovoltaic systems work?

Solar PV modules mounted on your roof convert sunlight directly into Direct Current (DC) power. An inverter converts this DC power into Alternating Current (AC) power that can be used in your home. The system is interconnected with your utility. During the day, if your solar system produces more electricity than your home is using, the utility provider will allow “net metering” or the crediting of your utility account for returning the excess power to the grid. The utility provides power as usual at night and during the day when your electricity demand exceeds that produced by your solar system.Will solar work on my building or house? All you need is a south-facing roof with little to no shade.