K2 Solar works with several financial institutions and partners to assist our customers with a wide range of financing options to fund their renewable energy projects. Options include basic financing for smaller projects (<200kW), property refinancing, and power purchase agreements (PPA's) for larger projects. Some of the programs available are:
Small Business Administration (SBA) Loans: Low-rate, government-backed loans available to qualified small businesses with a small down payment.
Standard Term Loans: Basic collateral backed loans with rates dependent upon term length and the customer's credit rating.
Equipment Loans: Loans utilizing the solar equipment as the primary collateral for the loan.
Property Refinancing: Property equity line-of-credit or mortgage refinancing to fund the project. Usually available with longer terms (>10 years).
Lease-to-Buy Options: System lease agreements with automatic or optional buy-out clauses at term end.
Property Assessed Clean Energy (PACE) Loans: This new program, available in most CA counties coming in the Summer 2010, enables customers to borrow the funds for energy efficiency or renewable energy projects and pay it back over 20 years as a special assessment on their property taxes.
Power Purchase Agreements (PPA's): Customers contract with a 3rd party PPA Provider who installs, owns, and operates the solar system. The PPA Provider contracts with a solar integrator to install the system and sells all the renewable energy generated back to the customer at an agreed upon rate ($/kWh) with a fixed annual rate escalator. This provides the customer with slightly below market energy costs for the next 15-20 years with minimal capital outlay.