ReEnergize Ohio is a partnership between the State of Ohio and banks that provides interest rate reductions of up to 3% on loans to small businesses that are upgrading their facilities to be more energy efficient. Give us a call to learn more.
Similar to a bank loan, the capital lease provides the benefits of equity and SREC, without requiring you to pay the full project cost up front. The project cost is paid out over a set period of time. This is generally the best option for “for profit” companies.
Similar to a rental agreement, the operating lease keeps the total cost of the project off the balance sheet, keeping your interest rates low. The terms of this type of lease include a fair market value purchase at the end of the term, which is typically 7-10 years.
Power Purchase Agreements (PPA)
In addition to leasing and more traditional forms of financing, our customers can purchase their power at a discounted rate through a Power Purchase Agreement (PPA). Under this type of agreement, OGW owns or partners with the owner of a solar array. Our clients pay for output just like they would pay for a utility bill, but normally at a lower utility cost from the first month. In other cases, and from a levelized cost standpoint, our customers can expect to pay from 5 percent to greater than 20 percent below retail electric rates over the system’s lifetime. They can also demonstrate environmental conservation without the outlay of capital and long-term maintenance requirements. The PPA is an ideal program for all business entities that can take advantage of depreciation or other tax based incentives.
Tax-exempt Lease Purchase (Municipal Lease)
The tax-exempt lease-purchase is intended to meet the special needs of state and local governments, non-profit organizations, and schools. It is offered at a much lower interest rate and longer terms compared to other lease options, and it allows for payments to be made through the operating budget.
Your energy. Your future.