Financing Options

As you investigate whether solar is the right fit for your organization, it is imperative to educate yourself on the financing options available.


For some of our non-profit clients with the funding to self-finance their solar investment, forgoing the federal 30% Investment Tax Credit is the most direct path.  Because Massachusetts has some of the best incentives in the country, typical IRRs (internal rate of return) are 10%-15%, with a payback inside of 10 years.


For non-profits with strong credit, commercial loans can be attaractive.  There is no upfront cost required, though a downpayment will reduce the loan term and/or payments.  Typical loan term duration is 10 years, during which time SMART revenue can play a large role in offsetting those fixed monthly payments.

Power Purchase Agreement (PPA)

PPAs are the mosy common financing method for non-profit organizations.  There is no upfront cost required, though a downpayment will reduce the energy purchase rate of the PPA.  A typical PPA term duration is 15-20 years, during which time there is an annual escalator of 0-2% and monthly payments are variable based on monthly solar generation.  This option offers buyout financing after 3-5 years and the option for system removal or buyout at the end of the PPA term.  There a mandatory buyout at the end of the operating lease term, where you would pay the greater of Fair Market Value or 15% of original lease value.  IRRs (internal rate of return) vary by system, but you can expect to be cash-flow positive from year 1 onward.

Operating and Capital Leases

Leasing is another tool for some clients with strong credit but who are unable to take advantage of federal solar tax incentives.  There is no upfront cost and a typical lease term duration is 7 years, during which time there is no annual escalator and monthly payments are fixed.  This option offers buyout financing after 3 years and requires a mandatory buyout at the end of the operating lease term, where you would pay the greater of Fair Market Value or 15% of original lease value.

Environmental Impact

In Massachusetts, greenhouse gas emissions total about 22 million metric tons per year. This means that annually, the Bay State is responsible for 185,000 tons of polluting emissions, with a large portion coming from electricity generation. Renewable energy sources like solar can play a significant role in reducing the state's environmental impact.

No-Cost Solar Analysis

Have SunBug Solar do a no-cost assessment of your organization. We'll do a complete analysis, factoring in the specifics of your site, the available state and federal incentives, projected energy savings, and financing options. Just fill out this simple form.

There are no silly questions

At SunBug we enjoy talking about solar, so if you have a question, just ask. If we can’t answer it immediately we’ll take the time to figure it out, because a well reasoned-answer is better than a quick, unconsidered one. And we’ll speak in language that makes sense to you. Not into kilowatts? Let’s talk dollars and cents.

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SunBug Solar creates positive environmental and social impact by exemplifying our core values of responsiveness, resourcefulness, and reliability with our customers, within our industry, and among our teammates. Founded in 2009 and a Certified B Corporation since 2018, SunBug has installed over a thousand solar systems across Massachusetts, from Great Barrington to Cape Cod. We design and build all types of solar systems, ranging in size from 1kW to over 1MW, including residential, commercial, carports, and ground-mounts. Our integrated approach—from initial education through consultative design to quality installation and ongoing support—has earned SunBug the highest reputation for customer service, and a host of satisfied residential and commercial customers.