FAQ

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Ownership Questions

  • There are several ways to fund your solar projects, and the best solution will largely depend on the type of project and organization.

    The three primary alternatives include:

    - Direct Purchase: This allows your organization to own the system outright and take on both the benefits and risks of ownership. You can take advantage of income tax credits (ITC), adders, and utilize the federal direct-pay option to cover 30-70% of project costs. Remaining costs can be covered directly or through low-cost capital from public and green lenders.

    - Power Purchase Agreement (PPA): A developer installs, owns, and operates a renewable energy system on your property. The property owner agrees to purchase the energy produced at a fixed rate over a set period, with little to no upfront cost. PPAs typically cover operation, maintenance, and insurance.

    - Tax-Exempt Municipal Leases: Used by public entities to fund projects without issuing bonds. This flexible financing structure supports essential public infrastructure and energy improvements.

    We work with closely your team to determine the best alternative for you.

  • Yes. The Direct Purchase option leverages existing ITCs and adders, similar to large residential projects. Tax-exempt entities can receive direct payments from the IRS, and we help secure additional funding or lending opportunities.

  • A PPA is a financial agreement where a developer designs, permits, finances, installs, owns, and operates a solar energy system on a customer’s property at little to no upfront cost. The customer purchases the electricity at a fixed rate, usually lower than the local utility’s rate, while the developer benefits from income from electricity sales, tax credits, and other incentives. PPAs typically last 10-25 years.

  • Yes, depending on your PPA terms. Generally, you can terminate the contract anytime by paying a termination fee or buy out the system at fair market value during periods designated in your contract (typically years 10, 15, and 20). Public bids may be required for government entities.

Financial Savings Questions

  • The payback period is the time it takes to recover your initial investment through energy bill savings. It varies depending on array size, energy consumption, upfront costs, and energy rates in your location.

  • Yes, PPAs generally offer buyout options at fair market value in years 10, 15, and 20. For government entities, a public bid may be required.

  • Excess energy credits are applied to the next month’s utility bill.

  • In a PPA, the equipment is owned by CSP’s investor partners, who require proof of financial stability.

Insurance Questions

  • The organization carries insurance on the building. We recommend adding a rider in case the property damages the solar array, should, for example, a tree or limb on the property fall and damage any part of the solar installation. The finance group carries insurance on the solar equipment. This coverage protects the building against damage from the solar array.All installers and contractors recommended by CSP will carry insurance to cover the employees, sub-contractors, and professional liability, including unemployment and workers compensation.

    Direct Purchase: The organization needs to include the rider to cover the additional equipment on their roof.
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    ‍    PPA: The PPA finance group carries insurance to cover the solar equipment.

  • This depends on the ownership model. A roof inspection is required before installation. If entering a PPA, additional insurance coverage may be provided by the finance group or developer.

  • CSP conducts site inspections before and after construction to ensure no damage occurs. Responsibility for damages typically lies with the contractor or installer.

Other Questions

  • Typically, 70-80% of energy consumption can be covered, depending on system size and energy usage patterns.

  • This can be included in your PPA or covered directly by your organization upon request.