Commercial Financial
We will custom design financing for your companies renewable energy and sustainability solutions with:
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No Upfront Costs
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No Maintenance Costs
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No Operational Costs
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No Repair Costs
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JUST ENERGY SAVINGS
We will even provide BATTERY BACK-UP to keep your business up and running during unforeseen utility black-outs, for total peace of mind.
Whether you are looking to finance your energy system partially or completely, there are options for you.
GPS Finance Services team of experts work with commercial, agricultural, municipal, and non-profit entities aiming to finance 100 kW and larger solar energy systems to hedge against rising energy costs. Our “green” asset lenders work with everyone from individual owner/operators to Fortune 500 companies. One key to the long-term success of an on-site renewable energy project is how will construction be funded and what incentives can be leveraged to ensure the feasibility of the project?
With the current State and Federal rebates being offered for solar energy products and green technologies, financing the net cost can make tremendous economic sense. There are several ways to integrate a solar energy system on your commercial property with little to no upfront costs which take the burden out of the transaction, but structure it so that you save money on a monthly basis.
GPS finances, builds, operates, and maintains solar energy systems at your site with no up-front capital expenditure. Instead of purchasing solar equipment, you purchase solar electricity, as it is generated, typically at a reduced rate. If there is no money out of pocket and you can save 20% or more on your electric expense every month.
When considering solar as an option for reducing your energy costs GPS can provide a cost effective and sustainable energy solution. Over the past nine years, the United States Photovoltaic (PV) market has grown 70 percent per year on average. Solar material prices and installation overhead are down, financing is more accessible, and technology has extended the life of solar electric systems. The upfront investment of solar generated electricity is now competitive, in many regions, with the price of electricity generated by local grid connected conventional neighborhood utility sources. In some locations, PV generated electricity has met or begun to drop below the average cost of electricity (what has come to become known as … grid parity).
California has required its electric utility companies, by year 2020, to have 30 percent of their retail electricity sales supplied by renewable sources such as PV. This demand is largely being met by private enterprise developing individual or multiple utility scale solar project sites to meet this requirement.
Here’s How We Do It
GPS has partnered with two national closed-end, externally managed investment companies. Both senior capital firms invest primarily in leveraged, small-to-mid market solar electric projects in the form of senior secured loans, including first lien, uni-tranche and second lien debt instruments. Our financial services goals strive to make it as easy as possible to finance solar and provide our clients maximum value through new investments, strong partnerships and the optimization of multi-million dollar funding sources. GPS financial services division covers transactions end-to-end, from quote to funding commitment, through construction financing and asset management services. In addition to capital, GPS financial services offers the best industrial know-how, technology innovation, financial strength, and well established monitoring. By keeping financing in-house, GPS is able to reduce costs, lower risks, and shorten the time to closing.
Green Power Systems was founded eleven years ago to pursue renewable energy development opportunities through-out Southern California. Through due diligence, research, and negotiation, GPS partnering with suitable sites is the most crucial part of developing a viable solar PV project. In selecting a site, the aim is to maximize output and minimize cost.
The main constraints that need to be assessed include the following and have been found to be highly satisfactory with these properties:
- Solar resource – Global Horizontal Irradiation, annual and inter-annual variation, impact of shading.
- Available area – area required for pitch angle and accessibility/proximity to existing power lines as well as roads, extent of new roads required.
- Land use designations – this will impact land cost and environmental sensitivity. The impact of other land users adjacent to the site should also be considered.
- Topography – flat or slightly south facing slopes are preferable for projects in the northern hemisphere.
- Grid connection – cost, timescales, capacity, proximity and availability
- Module soiling – including local weather, environmental, human and wildlife factors.
It is a myth that a solar project carries a huge upfront capital cost. GPS offers unmatched solar financing expertise that can deliver solar electricity at rates below standard electricity prices. Through a GPS finance services, it is possible to start saving on electricity from day one. We will work with you to deliver a financing package that addresses the specific needs of your organization. There are four types of partnering models:
Independent Power Producer (Cash Purchase) develops and owns the project to avoid/offset existing high utility costs. For companies with available capital expense budgets, this is the easiest and most convenient way to obtain a solar system as there will be no additional paperwork or credit requirements . By purchasing a system, your business will receive the federal and state tax credits and rebates as well as the benefits from accelerated depreciation. It will yield the highest ROI. [Click Here for more information]
Solar Lease (Standard Sale Leaseback) is an 8-10 year on-balance-sheet partnership between the property owner, the project manager, and a tax equity investor that in turn leases the project back to the property owner who operates the PV plant. A financial institution buys/installs the system and leases it back to the property owner over 10 years, at which time it can be purchased at Fair Market Value (FMV) or for a $1.00 buyout. This requires Zero money down, and can usually be tailored so that your lease payment is less than the cost of the energy being offset. Because the financial institution is purchasing the system, it will receive the federal and state tax credits and rebates as well as the benefits from accelerated depreciation. In some cases (depending on the amount capitalized) the monthly payments may be slightly higher than the cost of the energy being offset, but in that case the property owner typically receives the federal/state tax credits and rebates as well as the benefits from accelerated depreciation. [Click Here for more information]
Leveraged Equity Partnership (Power Purchase Agreement – PPA) is a 20 year off-balance-sheet easement for solar electric generation where there is a tax equity investor and property owner purchasing generated electricity as well as selling excess generation to the utility company at a negotiated price called a Feed-In-Tariff. With a PPA, property owners have zero upfront expense and realize positive cash flow from Day One. A third party purchases the system and agrees to sell the electricity produced by the system to the property owner at a discount to the current utility rate. In addition, the yearly rate escalation is locked in at a rate less than what the utility company typically raises its rates. [Click Here for more information]
Tax Equity (Property Assessed Clean Energy – PACE) is a 30 year alternative to traditional investment vehicles, is designed to spread the cost of the system over the expected life of the system.PACE financing effectively allows you to borrow money from your local government to pay for renewable-energy systems and/or energy-efficiency improvements. The amount borrowed is typically repaid via a special assessment on property taxes, or another locally-collected tax or bill, such as a utility bill. Only property owners within a local jurisdiction that opt in to a PACE program may receive financing and are subject to the special assessment. all types of custom energy solutions. [Click Here for more information]