Whether you’re a homeowner or a business owner, transitioning to solar energy is one of the smartest financial and environmental decisions you can make. Solar energy not only lowers your utility bills but also reduces your carbon footprint.

The challenge, however, is often financing the installation. Thankfully, there are multiple incentives and financing options available. This guide will help you explore the different solar financing options for both commercial and residential properties.

Whether you’re looking to rent, purchase, or explore solar for your property, Montgomery County Green Bank has solutions to make solar more accessible and affordable.

Solar Financing for Businesses

Businesses in Montgomery County can take advantage of commercial solar solutions designed to reduce operational costs without large upfront investments. The Green Bank offers flexible financing options for businesses of all sizes, ensuring that solar energy is a feasible solution for commercial buildings, educational institutions, and more.

Commercial Solar Power Purchase Agreement

The Commercial Solar Power Purchase Agreement (CSPPA) allows businesses to enjoy the benefits of solar energy without the financial burden of ownership.

The Green Bank offers residential and commercial financing programs to improve energy efficiency or install renewable energy systems on your property. By offering various financial products—including loans, grants, and public-private partnerships—clean energy financing makes these projects more economically viable and accessible, fostering the adoption of sustainable energy solutions while enhancing energy resilience.

Benefits of CSPPA

• No Upfront Costs: A third-party developer installs, finances, owns, and maintains the solar PV system on your property.
• Stable Electricity Rates: You only pay for the electricity generated by the system and at a lower rate compared to your utility provider’s charges.
• Hands-off Maintenance: The third-party provider handles all maintenance and repairs for the contract duration (typically 20–25 years).
• Predictable Costs: You’ll benefit from lower, stable energy costs over the contract period, with no hidden fees or unexpected maintenance expenses.

With CSPPA, businesses can significantly reduce their energy costs and contribute to a more sustainable future without making a large capital investment.

How Does CSPPA Work?

1. Contact MCGB to learn more about solar financing.
2. MCGB will connect you with a participating developer to assess your solar energy needs.
3. The developer will install, manage, and maintain the solar system for the agreed-upon contract period.
4. Pay only for the electricity generated at a pre-determined rate, with no surprises regarding maintenance or insurance costs.

Tailored Financing for Complex Projects

For businesses with unique financing needs, Tailored Finance is an ideal solution. This financing option is available to any commercial property looking to own their solar system and take advantage of the incentives available.

Benefits of Tailored Finance

• Up to 100% Upfront Financing: Receive full financing for your solar project with no out-of-pocket costs.
• Below-Market Interest Rates: The financing comes at substantially lower-than-market interest rates, ensuring cost savings.
• Flexibility: This solution is tailor-made for your project needs, offering flexibility that conventional lenders may not provide.
• Improved ROI: The financing is based on projected cash flows, promoting cash-flow-positive projects and improving your return on investment.

This financial tool is perfect for businesses or organizations that want to implement solar projects without dipping into development budgets or encountering financing hurdles. The Green Bank can structure this financing using its capital or through partnerships with other capital providers.

Solar Financing for Homeowners

Montgomery County Green Bank also offers programs specifically designed to help homeowners transition to solar energy. From flexible loan options to income-qualified financing programs, these residential solutions make it easier for households to reduce their energy costs and environmental impact.

Renewable Energy Financing

The Renewable Energy Financing program helps homeowners afford solar energy installations by providing access to preferential financing rates and a streamlined process. This program is perfect for homeowners who want to reduce their carbon footprint while saving on utility costs.

Benefits of Renewable Energy Financing

• Lower Utility Bills: By switching to solar, you can reduce your reliance on limited, exhaustible energy sources and lower your monthly utility costs.
• Preferential Loan Terms: Enjoy competitive rates and flexible repayment plans.
• Streamlined Process: The Green Bank works with you every step of the way, from selecting a contractor to navigating the financing process.

This program offers a straightforward way for homeowners to finance their solar installations without the financial barriers often associated with clean energy projects.

How Does It Work?

1. Choose a contractor from Montgomery County Green Bank’s list of participating partners.
2. Work with your preferred contractor to get a proposal for your project.
3. Complete the MCGB eligibility form.
4. Once approved, you’ll have access to preferential loan terms, enabling you to finance your solar panel installation at affordable rates.

Access Solar Financing for Income-Qualified Households

Montgomery County Green Bank’s Access Solar Financing program is designed for income-qualified households, offering flexible and affordable solar financing. This program is particularly beneficial for residents who are participating in the Capital Area Co-op through Solar United Neighbors (SUN) or those who are not using the co-op but are working with Access Solar participating installers.

Benefits of Access Solar Financing

• No Out-of-Pocket Costs: Homeowners can have solar panels installed on their property without upfront investment.
• Lower Energy Bills: Through a partnership with installers like Sunnova, homeowners agree to purchase the energy generated by the system at a set rate lower than their utility provider’s charges.
• Hands-off Maintenance: The solar system is maintained by the installer, so you won’t have to worry about upkeep.

Option to Purchase vs. Rent

• Option to Purchase: Homeowners can receive an upfront discount on their solar proposal if they choose to own their solar system. The homeowner can also use our financing options to cover upfront costs or finance the solar system over time. Long-term loans are available to cover up to 100% of the system’s cost, allowing you to benefit from solar incentives and long-term savings.
• Option to Rent (PPA): For homeowners who don’t want to own the system, the PPA or Power Purchase Agreement offers the ability to rent the solar panels. You’ll pay for the electricity generated by the system at a lower rate, without having to deal with maintenance or insurance costs.

The Access Solar Financing program provides homeowners with a low-risk, low-cost way to switch to solar, reducing their energy bills and contributing to a cleaner environment.

Go Green and Save with the Green Bank

Whether you’re a business owner or a homeowner, the Green Bank has solar financing solutions to meet your needs. From the CSPPA and Tailored Finance for businesses to Renewable Energy Financing and Access Solar Financing for homeowners, these programs make solar energy more accessible and affordable for everyone.

By choosing the right financing option, you can lower your utility bills, reduce your carbon footprint, and contribute to a greener future.

Contact Montgomery County Green Bank today to start your journey towards clean, renewable energy with a financing plan that works for you.