Tailored project finance for your energy strategy
Whether you want third-party financing or plan to use your own capital, Lumen Energy is here to simplify the process.
Compare financing side by side
Financing solar projects has been complex. Revising spreadsheet models to solve for different variables makes it difficult to optimize the economics. That all changes with Lumen. Get immediate, actionable solutions from financial models powered by thousands of data sets.
Seamlessly access offers from
leading solar financing partners
1
OPTION 1
Cash purchase
A cash purchase involves investing your own capital directly into the solar project.
Retain ownership of solar system and improve property building value over long term
Retain all tax, depreciation, and other incentives
Retain environmental benefits
Requires capital budget to construct, operate, and maintain system
Requires ability to monetize or transfer investment tax credit
2
OPTION 2
Loan
A solar loan allows you to retain ownership of your solar system in the same way as a cash purchase, yet reduces or eliminates the upfront capital commitment.
Up to 100% of eligible capital expenses financed for system construction
Retain ownership and control of the solar system and roof
Retains all tax, depreciation benefits, and other incentives generated by the system, including environmental attributes
Typically, system itself is only collateral required for loan, and there is no penalty for prepayment
Responsibility to construct, operate and maintain the system
Requires loan and credit approval process
Requires capital budget to construct, operate, and maintain system
3
OPTION 3
Power purchase agreement
PPAs are contracts for the purchase of solar energy from a third-party solar investor, typically at a discount to utility prices.
Owner PPA: If the utility meter is owned by the building owner, the building owner enters into a PPA and roof lease with the solar investor.
Tenant PPA: If the utility meter is owned by a tenant (NNN), the tenant enters into a PPA with the solar investor, and the building owner enters into a roof lease with the solar investor.
Investor takes responsibility to construct, operate and maintain the solar system
No upfront capital expenses
Hedge against rising utility power prices with a long term contract for clean energy with a predictable price schedule
Ability to buyout or transfer the PPA in the case of tenant change or change in property ownership
Investor retains ownership of the solar system and is granted roof rights
Investor retains all tax credits and incentive benefits generated from the system, including environmental attributes
PPA pricing and availability is often dependent on customer credit rating
Early PPA contract termination can require prepayment of the remaining contract. PPA may also have assignment provisions upon a change in property ownership
4
OPTION 4
Community solar
Community solar involves a program, typically administered by a utility or state program, that enables multiple participants, including renters, businesses, and others to subscribe to a portion of the energy produced by a solar system. A building owner can host a community solar system and receive an annual roof lease payment from the solar investor.
Investor takes responsibility to construct, operate and maintain the solar system
No upfront capital expenses
Ability to monetize roof space with a long term roof lease payment
Receive GRESB points for enabling community access to solar
Building owner or tenants may have the option to subscribe to the energy produced by the solar system
Investor retains ownership of the solar system and is granted roof rights
Investor retains all tax, depreciation benefits, and other incentives generated by the system, including environmental attributes
Only available in certain jurisdictions
Requires an application process and approval and some programs may have limited or no availability
Adam Slakman
VICE PRESIDENT, GLOBAL ESG AT HINES
Benefits of getting offers through Lumen Energy
Save time
Lumen’s technology pre-underwrites financing offers from leading solar investors, saving you weeks or months or time going out to bid among multiple solar providers.
Save money
Lumen’s transparent and competitive process removes the opaqueness and inefficiency that has characterized the solar industry. Solar investors bid “apples-to-apples” through Lumen’s platform on our recommended system size, design and hardware specs.
Decide with confidence
Lumen seeks to help you choose the best bid. Each bid is levelized through Lumen’s investment grade solar financial model, and available for download. We also closely evaluate and score the experience, qualifications, financial record and references of each bidder, so you can make a holistic decision.
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FEATURED PARTNERSHIP
Lumen Energy partners with Crux to seamlessly sell ITC tax credits
Lumen Energy announced a new partnership with Crux, a sustainable finance technology company, to accelerate commercial real estate’s transition to clean energy by solving a critical challenge: monetizing solar investment tax credits.
On-site solar is increasingly lucrative for commercial real estate owners. Solar and storage systems can increase net operating income (NOI), boost property values, and slash carbon emissions, leading to consequential financial and environmental gains.
Ready to see the solar potential across your portfolio?
Leading real estate firms are leveraging solar to unlock new NOI, attract the best tenants, and meet investor demands.