Financing commercial solar is one of the smartest ways to reduce operating expenses without tying up your business’s capital. It gives you access to long-term energy savings, tax credits, and improved cash flow—all while keeping your balance sheet intact.
We work with energy-intensive industries such as manufacturing, agriculture, dealerships, and data centers, as well as commercial real estate owners who are looking for reliable ways to control costs and strengthen margins.
Most businesses already know solar installation is a smart solution. The real question is how to get it done without tying up capital. That’s why financing matters.
This article covers what financing commercial solar looks like, how the numbers work, and how companies are using it to save big on their energy bill—with zero operational disruption.
Why Financing Commercial Solar Is a Smart Business Decision
A commercial solar system is a strategic financial advantage, replacing upfront costs with predictable monthly payments that are typically less than current utility expenses.
This creates two immediate advantages: reduced cash outflow and improved Net Operating Income (NOI). Additionally, solar enhances property value and tenant appeal.
When done correctly, financing commercial solar can lead to:
- Lower and more predictable energy expenses
- Fast payback periods, typically ranging from 2 to 5 years
- Significant Return on Investment (ROI) over 20 to 30 years
- Increased property valuation
- Better positioning for sustainability-conscious investors and clients
Ultimately, investing in commercial solar is about more than going green—it’s about making a smart, long-term investment even without a CapEx budget
Financing Commercial Solar: Your Options
When you finance solar for your business, there are four tried-and-true models:
1. Power Purchase Agreement (PPA)
With a PPA, you don’t buy the system; you agree to buy the power it produces at a lower rate than your current utility. It’s off-balance-sheet, which makes it appealing for companies focused on EBITDA or debt ratios.
The system is owned and maintained by a third party, which means you get lower energy bills immediately without maintenance responsibilities or capital investment.
2. Solar Lease
A lease works a lot like a PPA, but instead of paying for the power, you pay a fixed monthly fee to use the system.
The benefit here is predictability—you know what your energy costs will be every month. You don’t own the system, but you benefit from the savings.
3. Commercial Loan or Equipment Financing
If you want to own the system and take full advantage of the tax credits, a commercial loan or capital lease may be the right move. Your business gets the asset, and you spread out the cost over time.
This option usually delivers the highest long-term return, especially if you have a strong tax appetite and want to depreciate the system over time.
4. PACE (Property Assessed Clean Energy) Financing
If your location qualifies, you can use PACE financing to pay for the system through your property tax bill. It’s long-term, often 15–25 years, and doesn’t require a personal guarantee or down payment. PACE can often be structured to be cash-flow positive from day one.
Not sure which option fits your structure? We can walk you through the numbers and help you select the right financing model for your business.
Tax Incentives That Strengthen the Case for Commercial Solar Financing
The federal Investment Tax Credit (ITC) is the most significant financial benefit available for commercial solar. It covers 30% of your system cost as a direct reduction of your tax liability—not a deduction, but a credit.
If your system meets certain “domestic content” requirements, you can qualify for an additional 10% tax credit. That brings the total up to 40%, or even 50%, in many cases.
There are also potential state-level incentives depending on where your facility is located. We handle this analysis as part of your financial assessment, and we file the paperwork so you don’t miss out.
These incentives can drastically lower your out-of-pocket cost and improve your ROI, especially when combined with low-interest financing.
Note: Not all financing options will qualify for the ITC. Our team can see if your financing will qualify and guide you through the process.
Case Study: Steel & Pipe Supply Co. Finances Solar for Long-Term Savings
Steel & Pipe Supply Co., a major steel distributor, came to us with two clear goals: cut operational costs and reduce their exposure to rising energy prices.
We designed and installed a 2,200 kW rooftop system across their Fort Gibson Road and Bird Creek Avenue facilities in Catoosa, Oklahoma. The system was financed to preserve working capital and utilized maximum tax savings.
Results:
- First-Year Energy Savings: Over $100,000
- Lifetime Savings: Estimated at $4.5 million
- Environmental Impact: Offset over 58,000 metric tons of CO₂
John Conley, Co-President of the company, summed it up well:
“This project is a testament to our commitment to sustainable energy solutions and a prime example of how businesses in our space can reduce operational costs while aligning with long-term sustainability goals. We look forward to future collaborations that drive positive environmental and economic impact.”\
Read the full case study here.
This is exactly what financing commercial solar is designed to do: reduce costs, improve long-term financial performance, and avoid capital strain.
Ready to Run the Numbers?
If you’re managing high utility bills, and you’re looking for a way to improve NOI, cash flow, or property value, solar is worth a serious look. With current incentives and financing options, commercial solar has never been more accessible.
Artisun Solar will walk you through every step: financial modeling, incentive planning, permitting, and installation. We do the heavy lifting—you get the long-term savings.
Request your free solar assessment or look into our financing options. Let’s see what solar could do for your bottom line.
Frequently Asked Questions About Financing Commercial Solar
How quickly will I see ROI from financing commercial solar?
Most clients see payback in 2–7 years, depending on system size, usage, and incentives.
Is it possible to finance commercial solar with no upfront cost?
Yes. PPAs and leases allow you to install solar without any capital outlay.
Can I still get tax credits if I use financing?
Yes. Ownership models like loans and capital leases allow you to capture tax credits directly. We’ll show you how to structure it for maximum benefit.
Learn more by checking out our Guide To Solar Savings: Understanding the ROI and Benefits of Commercial Solar Energy
