Balance Solar provides specialized solar financing for municipalities and nonprofits, enabling them to adopt solar energy without upfront capital. The company structures prepaid Power Purchase Agreements (PPAs) that monetize the Federal Investment Tax Credit (ITC), reducing project costs and facilitating zero-down installations.
Funding
Funding not disclosed
Founders
Product
Problem
Municipal and nonprofit organizations often face significant upfront capital requirements to adopt solar energy solutions. This financial barrier prevents many entities from accessing the long-term cost savings and environmental benefits of solar power.
Solution
Balance Solar provides specialized solar financing solutions designed for municipal and nonprofit sectors, primarily through Prepaid Power Purchase Agreements (PPAs). This financial structure allows these organizations to monetize the Federal Investment Tax Credit (ITC) by selling it to third-party investors. Balance Solar facilitates this by structuring short-term agreements where the customer prepays for electricity, effectively reducing the initial project cost by 12% or more. This approach enables organizations to benefit from solar energy without requiring upfront capital investment, while also offering the flexibility to be paired with other financing methods like loans for a "zero down" implementation.
Target Audience
The primary target audience includes municipal governments, public facilities, and nonprofit organizations seeking to implement solar energy projects without incurring significant upfront capital expenditures.
Features
- Prepaid Power Purchase Agreements (PPAs) that enable monetization of the Federal Investment Tax Credit (ITC).
- Short-term agreement structures (6-10 years) for Prepaid PPAs, offering flexibility compared to traditional PPAs.
- Facilitation of third-party ownership of solar assets, removing long-term payment burdens for clients.
- Compatibility with other financing instruments, such as private taxable loans, to achieve zero-down solar installations.
- Participation in the Illinois Solar for All (ILSfA) program as an approved vendor, specifically for the Nonprofits & Public Facilities subprogram.
- Structuring of PPAs within ILSfA to achieve a minimum of 65% savings in the first year and 92-93% savings over the system's lifespan.
- Expertise in navigating state-specific regulations, such as third-party ownership requirements in certain states.