For businesses of all sizes, solar energy can be a great way to reduce operating costs and increase the bottom line. At BAI, we work with businesses to develop solar projects that have an attractive ROI while delivering long-term cost savings.
Benefits of Solar for Businesses
- Save money by reducing facility and utility operating costs
- Hedge against future utility rate hikes
- Reduce your carbon footprint
- Reduce taxes
- Increase profits
- Do you own your building or have a long-term lease?
- Do you pay more than $20,000 a year for electricity?
- Have you been in business for more than 3 years and have good credit ratings?
If you answered yes to all three questions, your business might qualify for a zero-down solar solution.
The BAI Approach
- Solar Feasibility Study – We analyze your needs and electric bill data to make sure that a solar project will benefit your business.
- Proposal Development – Once we understand how solar can benefit you, we develop a comprehensive proposal for you and your leadership to review. During our study, we’ll idenfity which funding method will save you the most money. See the Financing Approach section for more details.
- Letter of Intent – If our proposal addresses all of your needs, we’ll provide you with a letter of intent that allows us to perform a deeper due diligence.
- Negotiations and Due Diligence – At this stage, our team will work with you to fine tune the solar project for maximum benefit. We will assess your specific situation to confirm our assumptions.
- Agreement Execution – We celebrate your decision to go solar by signing a contract or agreement.
- Solar Project Construction – Our solar installation team installs your new solar panels.
- Commissioning and Operation – After installation, the solar panels undergo comprehensive testing. When all systems perform at or above expectation, we turn on the solar array.
Financing Your Solar Project
We offer businesses two funding options for their solar projects:
Third Party Ownership
- Solar Power Purchase Agreement (PPA) – For businesses with strong credit rating, a PPA might be the right option. The PPA approach requires no money out of pocket. Using our own resources, we will build, own, and operate the solar project and sell you the power at a significant discount. This approach typically generates instant positive cash flow for your business.
- Solar Savings Program (SSP) – The SSP program is a third-party ownership approach that works best for businesses that are able to buy the solar array (see Direct Ownership below) but don’t have the tax liabilities to take advantage of the solar tax incentives. The SSP monetizes the tax incentives by allowing us, or our partners, to use the tax credits in the project in exchange for a lower construction cost. We typically see savings of 20 percent or more on the construction costs using the SSP.
Direct Ownership – Businesses with access to capital and which typically have significant tax burdens are strong candidates for Direct Ownership. We will explain the solar tax incentives available to businesses that purchase their solar system directly. With this approach, you hire us to permit and construct the solar panels for you. The advantage to businesses who work with BAI is that we utilize our strong experience in the industry to minimize your construction costs. This approach tends to save businesses the most money in the long term.