Commercial solar financing in Carbondale, Basalt and Glenwood Springs

Short answer: A business in Carbondale, Basalt or Glenwood Springs has three main ways to pay for a solar system: cash, a loan from its bank or credit union, or Colorado C-PACE, which lets a property owner finance up to 100% of an eligible project and repay it as a line on the property tax bill. Nonprofits, schools and local governments may also be able to use Direct Pay. The right fit depends on who owns the building, how long you plan to hold it, and what your lender allows.

For a shop owner on Main Street in Carbondale, the question is usually how to pay for solar without tying up cash the business needs.

Commercial solar financing: the main options

Each of these puts the system on your building and leaves you owning it. They differ in where the money comes from and how you pay it back.

• Cash. The simplest path. You pay for the system, own it outright, and the bill savings start right away.
• A business loan. Many owners go to the bank or credit union they already work with. Terms and rates are set by your lender, so we don't quote them. We give your lender the project scope and price they need to underwrite it.
• C-PACE. Covered in detail below. It's worth a close look if you own the building and want to keep the debt tied to the property.

A cash purchase and a loan work the same for a warehouse in Glenwood Springs as for a home.

How C-PACE works

C-PACE stands for Commercial Property Assessed Clean Energy. Per the Colorado Energy Office, it's a statewide program for owners of commercial, industrial, multifamily and agricultural property. The Colorado New Energy Improvement District runs it, and private capital providers supply the money.

According to the program:

• You can finance up to 100% of the cost of eligible improvements, and renewable energy is on the eligible list.
• You repay through a voluntary special assessment on your property tax bill.
• The assessment is tied to the property, not to you, so it can transfer to the next owner if you sell.
• Your county has to opt in. Properties in Carbondale, Basalt, Glenwood Springs and the other towns we serve are in counties on the program's participating list.

Two things to know before you get attached to it. If the building has a mortgage, the program requires your mortgage holder to consent before the assessment is placed. And the repayment term and rate come from the capital provider, so get those in writing from them. We help with the solar side of the application: system design, production estimate and price.

Nonprofits, schools and local government: Direct Pay

If your organization is a nonprofit, a school or a local government body, Direct Pay may apply to your project. It works differently from the options above, and the rules are specific. Our Direct Pay page explains who qualifies and how it works. Talk with your own tax advisor before you count on it.

Which option fits your building

A few questions sort it out quickly:

• Do you own the building, or lease it? A tenant in a Basalt storefront has different options than the owner of the building.
• How long do you plan to keep the property? If you might sell, it matters that a C-PACE assessment stays with the property.
• Is there a mortgage, and will the lender sign off on a C-PACE assessment?
• Would you rather keep cash in the business or avoid interest?

We give you a system price and production estimate so you can compare the options side by side.

Financing is one piece of the plan. Our post on the biggest mistakes businesses make going solar covers the rest.

What to bring us

To price a system and line up financing, we need:

• Twelve months of electric bills from your utility (Holy Cross, Xcel or Glenwood Springs Electric)
• The age and type of your roof, or the area you'd use for a ground mount
• If you own the building, and if it carries a mortgage

From there we design the system with Enphase IQ8 microinverters and Tier 1 Hyundai modules and send a proposal with the full price. We've been doing this in the valley since 2003 and we're an Enphase Gold Installer.

Common questions

How can a business finance commercial solar?

The main options are cash, a business loan from a bank or credit union, and Colorado C-PACE for property owners who want to repay through their property tax bill.

Can C-PACE cover the full cost of a solar project?

The program allows financing of up to 100% of eligible improvement costs. The capital provider sets the final amount, term and rate.

Is C-PACE available in Carbondale, Basalt and Glenwood Springs?

Yes. Properties in those towns are in counties that participate in Colorado C-PACE, according to the program's participating county list.

Can a nonprofit or school use Direct Pay for solar?

Nonprofits, schools and local governments may qualify. See our Direct Pay page and confirm with your tax advisor.

What does Sol Energy provide for a financing application?

The system design, a production estimate and the full price. Those are the pieces a lender or C-PACE capital provider asks for.

Start with a number

Send us your bills and we'll show you what a system on your building would produce and cost. Get a free quote from our Carbondale team, or call us at (970) 963-1060.