Commercial solar installer offering, system design, monitoring and maintenance by Bliss Solar, LLC is the practical application of the ever-evolving technologies used to reduce energy. Our team has long standing experience in energy efficiency and sustainability consulting and finance.
Commercial Solar Ownership
When a commercial system is purchased outright by a property owner with no outside tax equity investors involved, the Solar ITC (Investment Tax Credit) and accelerated depreciation of the PV system go to property owner.
Building owners have the option to purchase the PV system with their own funds. The Bliss Solar team can design, build, and commission the system. This option may provide the fastest payback and best return on Investment compared to any other option.
In addition, property owners also have the option of financing the system via the Bliss Solar network of PV specific lenders.
Project finance may be a mix of investment from the property owner and debt financing from the PV lender. Equally important is the interest rates are subject to lender’s underwriting analysis.
Operating Lease - Long Term
Commercial solar project finance is the most advantageous when property ownership cannot or desires not to take the available tax benefits. Therefore, the system is owned by a PV Finance company during the term of the lease.
Lease structure benefits offer lower electric costs with no volatility ownership, plus utilization of tax incentives to lower overall cost of the system to the property owner.
The lease agreement between the finance party and the property owner and is structured for a term of (7) years or in limited cases up to 10 years. In consideration of this the PV system ownership is flipped back to the property owner who will from that point own the system outright.
By the same token during the lease period the financing party will also provide maintenance and manage operations of the PV system. Bliss Solar and its team can design, build, and commission the system to be paid by the lender.
The benefits of a commercial solar lease are numerous. The main advantage being that the tax benefit is still utilized for the project so that the total project cost is reduced overall and paid for via lease payments. Coupled with this another benefit is the shorter duration of outside ownership of the system.
As soon as the tax benefits are utilized in full and the lease term is up, the commercial property owner takes back ownership of this energy production system that is highly durable and lower maintenance.
The benefit of fixed payments is generally modeled to be lower than the historical monthly cost of electricity paid to the power company.
3rd Party Ownership (PPA) | (ESA)
The PPA is a solution for a property owner or tenant in a long-term lease (minimum 20 years) looking to reduce their energy costs specifically their electric rate ($/kWh) over the long term but would prefer ownership, operations, and maintenance to be handled by an outside party.
Our PPA finance companies and developer team have expertise in the turnkey process of building and commissioning the system while managing the long-term maintenance and performance of the asset for the duration of the PPA agreement.
In this model the PPA agreement clearly outlines and specifies the electric rate that the commercial property owner or tenant will pay over the 20-year agreement. This will encompass the discounted rate, which may have a slight escalation. The 20-year perspective may provide vast savings in avoided electric costs over the long term due to the PPA.
Moreover, the power purchase agreement would include maintenance and operational terms that the PPA provider is bound to ensure for performance and system integrity to the PPA client.
The benefits of this PV system financial model for a property owner or tenant in a long-term lease not interested in PV equipment ownership are many. This is an excellent solution to hedge against rising electric costs with a competitive annual market rate that provides a significant discount and protects against volatility in the energy industry affected by macro-economic factors.
Another major benefit is that this product offering is designed to provide a worry free and hands-off model to the property owner and client so they can focus on their own business and operations.
The long-term extent of this type of commercial solar agreement falls right in line with the outstanding life cycle of the major equipment of the solar PV system allowing for 20-year savings in parallel with consistent performance.
Strategically located in Long Island, New York, we serve the 5 boroughs of New York city as well as New Jersey. Bliss Solar, LLC does not charge to provide building owners with a commercial solar design and comprehensive proposal or request for proposal (RFP).
Community Solar - Roof Lease or Land Lease
Community solar is a wonderful achievement of the solar industry, power companies, and energy policy officials that allows for large PV plants to power the grid and in effect provide virtual clean energy to homeowners and ratepayers.
In terms of commercial solar design and community solar, we recommend building owners have a minimum usable rooftop space of 30,000 square feet and landowners with at least 3 acres or more of open land.
New York and New Jersey building owners can monetize this unused space over the long term by entering into a land or roof lease agreement that will make annual or possibly monthly payments for the development of our PV System on the property and usage of the site over a 20-year period.
Our team offers a no cost assessment of the rooftop or Land site and provides an estimate for the lease of the property. Once a lease is formally executed, we begin the necessary design, engineering and permitting tasks for your project to ensure its viability.
Strategically located in Great Neck, Long Island New York, we service the 5 boroughs of New York city as well as New Jersey. Bliss Solar, LLC does not charge to provide building owners with an initial commercial solar design and comprehensive proposal.
Commercial Solar Incentives For Businesses
Federal ITC: This is a federal Tax Credit for a business which has invested in and owns the solar system. The Tax Credit as of 2022 is 26% of the total system cost that can be utilized. This can be taken in whole over (1) year or spread out over multiple years. Tax Depreciation: The IRS allows for depreciation of a solar PV system within the tax code of equipment depreciation.
New York State: Each state is unique in their offering of incentives for commercial solar. Some states provide an upfront cash rebate based on the system capacity size i.e. New York – NY Sun program. Let us know which state your commercial property resides so we can assist you in calculating your incentives. Alternatively you can visit the DSIRE website to target your particular state’s incentive.
Extending & Expanding Section 45 (PTC) and Section 48 Production Tax Credit
The Act extends the Section 45 PTC tax credit of 1.5 cents per kilowatt hour for electricity produced from renewable energy sources, including solar, and the Section 48 ITC 30% tax credit. Both of these programs will be extended until 2025, and then converted to a clean electricity production tax credit (CEPTC) and clean electricity investment credit (CEITC). This means that production and investment tax credits will be in place for 10 years (until 2032), a long-term commitment that is important for development, particularly for large-scale solar products.
The Act also adds solar facilities to the list of PTC-eligible facilities. The PTC is based on the power produced by a project over 10 years, while the ITC allows investors to claim a one-time tax credit based on the project’s value.
The “residential clean energy credit” extends and enhances an existing tax break. Costs incurred from the beginning of 2022 to the end of 2032 would qualify for a 30% tax credit. The credit would fall to 26% in 2033 and 22% in 2034.
Moreover, the proposal also extends the tax credit to battery storage technology. This lets homeowners more easily pair solar installations, for example, with battery systems that store excess renewable energy for later use
Each commercial solar design involves a detailed site analysis, a comprehensive design completed by our engineers to maximize system performance and compliance, and internal review by our in-house experts to confirm project viability. We utilize various software to cross reference each specification.
Our commercial design team focuses on collecting data from bills and equipment that help us shape your carbon profile accurately. Using this profile, we compare with other facilities of similar size and user type to forecast areas where solar energy could be utilized to effectively reduce energy costs.
We continue our commercial solar design consultative approach in the financing stages of the project and excel in providing multiple revenue forecast scenarios, various debt/equity mix options, and system ownership options that are customized to each client’s tax liability and interest in the project.