Solar@Work
To visit the Solar@Work website click here.
What is Solar@Work:
Solar@Work is a collaborative pilot program led by the World Resources Institute with support from the San Francisco Department of the Environment. The program assists San Francisco businesses obtain affordable solar electric systems through group-financing and an “aggregation” approach to purchasing. By forming a collective group-purchasing system, Solar@Work is able to lower costs, minimize time and staff resources allocated to the solar process, all while negating the lack of available financing and upfront costs associated with commercial scale solar systems. The more businesses that sign up the larger the group-discount will be with the established incentive of larger reductions if the group installs more than 3 megawatts City-wide. The World Resources Institute has aggregated the local business demand for solar electric systems and found a vendor (Solar City) to act as a bulk supplier for San Francisco. Solar@Work is mutually beneficial with businesses gaining leverage through collective buying power and better financing prospects as well as Solar City is able to create jobs within our local community.
Banks interested in being considered as program suppliers of funding should contact WRI for more information.
How it works:
Commercial facility owners in San Francisco who want to utilize solar power as a means of offsetting their electric usage and costs are encouraged to apply for program participation. In order to be deemed eligible the building must be an owner-occupied commercial property (non-government or residential) with an average electrical load and a maximum of 3 stories in height. The building must have 5000 square feet of available space on their rooftop/parking area with no shade or obstruction of the sun. Additionally, in order to ensure the viability and productivity of the program the property owners should have no plans for major repairs or renovations within the next 15 years to the installation areas.
Projects constructed under the Solar@Work program can expect lower-than-average solar pricing with preferred financing terms for qualified buyers; also, performance guarantees will be included to ensure that the solar systems deliver long-term savings. Most important to businesses is that there is little or no money required in advance and the system will have a buyout option at the end of the expected 7-10 year financing term. All solar rebates will be received by the buyers while the tax benefits will be used by the financing company in order to reduce monthly finance payments and streamline accounting and reporting requirements.
Financing Features:
The installation of solar electric systems within the Solar@Work pilot program have four financing options for businesses and property owners to chose from.
- Cash purchase: No financing costs with all of the solar electricity generated over the system’s lifetime (more than 20 years) going directly toward offsetting the company’s energy costs.
- Solar Lease: Lease agreement under which the solar unit will be hosted on participant’s property, the participant receives all of the electricity generated with few upfront costs and no liability. With this option the new solar lease payments and electric bills can be lower than current utility bills.
- Capital Loan: Participant borrows cash from a current or other banking partner to purchase the solar unit (participant receives any applicable tax benefits directly) with repayment of the loan over the negotiated terms of financing. All energy generated will help to offset the participant’s usage and electricity bills should be significantly reduced, however, the transaction will be on the participant’s balance sheets.
- Other Options: Options include power purchasing agreements, property assessed financing, and loan guarantees for disadvantaged business locations. These options may not be suited for all potential buyers; a variety of options can be investigated and evaluated on a case by case basis.
To visit the Solar@Work website click here.