Revel takes initiative in offering a variety of financing options to help businesses transition to better power. For a majority of our clients, that means an instant positive cash flow produced by their new energy system, with no up-front costs.
Shared savings is a powerful finance tool that allows business owners to start benefitting from a renewable energy program right away, without the limitations of upfront cost. Here, a 3rd party purchases the energy system. The business owner pays back the purchase over time through the utility savings, and see a positive cash flow right when the power is switched on.
Shared Savings offers a range of benefits:
- Low to no upfront costs
- Reduces monthly utility bill
- After the repayment period ends, you keep the savings
Traditional PPA (Power Purchase Agreement)
In a power purchase agreement, a 3rd party, such as a financing company, purchases and sets up your system for you. This developer then sells you the power at a fixed, discounted rate. It’s a simple, no-hassle option to enable business owners to adopt solar and lower their utility bills from month one.
- Low to no upfront costs
- Predictable energy expenses: your utility bill is agreed upon
- Simple and straight-forward. The 3rd party owner of the system takes care of all the details, such as leveraging tax credits and incentives
- Ownership easily transferred after agreement
PACE – (Property-Assessed Clean Energy)
PACE is a form of long-term financing that eliminates up-front costs and allows business owners to adopt the energy system they want. It works in addition to federal and state tax incentives, and allows the building owner to own the energy system.
- Able to cover 100% of projects hard and soft costs, with nothing out of pocket
- Repaid as an assessment on building’s property taxes
- Because of bond underwriting it’s possible.
Commercial Banks, Lease financing, and Private investors
Revel has a whole network of investors who are interested in funding a range of products both large and small. The revel team is equipped to match each client with the funding option that is right for them.
Special programs for Non-Profits
Non-profits have additional financing options available to them, including grants. Revel makes it easy for non-profits to get the full range of financing that is available to them.
Two main incentives offered by the federal & state governments can dramatically offset the upfront costs of a sustainable energy plan. Together, these benefits typically end up covering around 65% of the investment.
- Federal Tax Credit
- Applies toward the dollar-for-dollar value of the solar system
- Set at 30 % of the unit through end of 2019, after which credit begins to roll back
- MACRS (Modified Accelerated Cost Recovery System) Depreciation
- Both a federal and State incentive that allows purchaser to deduct the depreciation of the unit over 5.5 years
- Fed depreciation offers either a one-time Depreciation or a MACRS schedule over 5.5
- State offers a net depreciation over 5.5 years
- Plus, the increase in value to your building from adding a solar unit is tax-exempt!
**Revel does not guarantee the incentives as described above. Please consult your business’s tax professional with questions regarding energy incentives.
With the right financing and help, enjoy positive cash flow right away, with no up-front cost. Benefits last long after the payments are completed.
Revel enables companies to regain capital and reinvest in growth.