Artistream Energy, Inc.

Intelligent financing is key to today’s solar projects. Solar financing encompasses incentive maximization, cash flow modeling, tax optimization, finance vehicle selection as well as financial vendor fit. Skipping or short changing any of these steps can result in significant money being left on the table.

Currently there are a number of financing options available to both commercial and residential solar projects:

Power Purchase Agreement (PPA) - This is a contract where a developer implements, owns and maintains the solar installation (that the customer hosts) and the customer signs a long-term (10 – 20 year) electricity purchase agreement with the developer for a locked in energy rate.

Solar Lease - This is essentially a modified equipment lease tailored for the unique circumstances of the solar model. Solar leases are only offered by a few providers currently but as solar becomes more common and lenders understand the dynamics better, these leases will become more available. Lease terms are typically 5 – 7 years and the interest rates are generally higher. The main advantage to a solar lease is that typically no additional collateral is required beyond the equipment being implemented.

Mortgage Vehicles -

• Commercial – Businesses looking to finance renewable energy and energy efficiency equipment while holding cash flow outlays stable or even lowering cash flow outlays can utilize long-term commercial mortgages (15 – 20 year)

• Residential - Currently many mortgage lenders will bundle solar implementations into 1st mortgages, refinances, 2nd mortgages or home equity lines. In many cases, the additional monthly payment is less than the cost of the electricity being offset by the solar system.

Commercial Loans - Many companies opt to use existing credit or financing lines with their banks or use excess cash that would otherwise be invested elsewhere.

Which type of financing you use depends on your goals, the size of the project, your credit rating, tax status, available incentives and the credit environment at the time of the project. Artistream can help you optimize your return on investment, model the actual cash flows, secure all the available incentives and arrange the best financing.

If you are ready to lower your energy costs, improve your cash flow, reduce your dependence on fossil fuel and secure a unique competitive advantage, then contact Artistream today.