Financing

• Flexible Project Structuring Options and Competitive Financing Cost

  Solar Monkey’s primary business is the turn-key deployment of commercial-scale solar power systems. However, the Company also has the in-depth financial, regulatory, and legal expertise to help its prospective customers navigate the complex matrix of financing, tax, legal, and project structuring considerations, which are the most difficult and critical aspects of any significant renewable energy projects. The Company holds its project development team to the highest standards of customer service and requires the financing recommendation for each project to be based on a thorough understanding of the customer’s power needs, credit conditions, and financial capabilities. The Company also continuously evaluates and strengthens its relationship with its financial partners to secure the most competitive financing terms.

• Debt-based Financing

  Approximately 90% of Solar Monkey’s customers chose to finance the system purchases with debt-based solutions. For these customers, Solar Monkey generally recommends and helps facilitate the process for customers to obtain bank loans. The typical solar equipment loans are between 7 years to 12 years, with some as short as five (5) years. The Company has worked with various leading solar equipment lenders including Wells Fargo Bank, Union Bank of California, and U.S. Bank. Solar Monkey is also experienced with the application and administration of low-income tax credit and Small Business Administration (SBA) financing solutions for qualified customers.

• PPA Financing

  Solar Monkey typically proposes PPA arrangements to educational customers – schools, colleges, and universities – because they generally make decisions based on a long-term horizon (20-25 years) and prefer not to retain fixed assets on their balance sheets. The Company has also been actively pursuing PPA projects with multi-location commercial host customers that have investment-grade credit, consistent and long-term electricity need, and can benefit from a standardized PPA contract.

  Solar Monkey has successfully structured and completed two self-owned PPA projects with the Lafayette School District in Contra Costa County, California. Specifically, Solar Monkey now owns, operates, and maintains a 76 kW system at the Lafayette Elementary School and a 101 kW system at the Springhill Elementary School. The Company has also partnered with other PPA providers such as Solar Power Partners, Inc. and Tioga Energy, Inc., including selling to Tioga Energy two (2) additional Lafayette School District PPA projects originally developed by the Company. Tioga Energy now owns and operates those projects.

  Solar Monkey’s PPA-based solar systems offer host customers various unique benefits:

  • Obtain a solar power capacity without the upfront capital expenditure
  • Long-term power rate is predetermined in the PPA contract, typically below the prevailing utility power rate
  • Host customers generally have the option to acquire the solar system after a period of time at the fair market value
  • Professionally operating and maintenance services provided by Solar Monkey
  • Receive positive publicity and marketing benefits for the support of renewable energy development