Leasing cuts cost of solar panels for public bodies and charities

UK solar energy supplier Solarcentury has today announced a new solar power leasing package tailored for charities and public sector organisations, intended to reduce the burden of upfront capital investment.

The lease provides easy access to the government’s Low Carbon Buildings Programme (LCBP), which offers up to 50 per cent grant funding for solar photovoltaic panels installed on charity or public-sector premises as part of a refurbishment or new-build programme.

In combination with LCBP incentives, the leasing agreement allows qualifying organisations to spread solar power installation payments over three to five years.

Solarcentury’s announcement comes on the heels of a report in yesterday’s New York Times of similar financial innovations aimed at making photovoltaic technology more affordable to businesses in the US.

US solar power providers are taking on the cost of panel installation, offering solar electricity through so-called “power-purchase agreements” (PPAs).

Through PPAs solar power providers such as SunEdison and SunPower take care of installing solar panels on customer’s roofs in return for payment for the output of electricity, usually at a lower rate than they would normally pay more conventional suppliers.

Banks such as Goldman Sachs, Wells Fargo and MMA Renewable Ventures are also financing solar power. The latter claims it has arranged financing for $300m worth of solar energy projects.

State incentives and a federal investment tax credit (worth up to 30 cents on the dollar) are also accelerating adoption rates. According to the Solar Energy Industries Association, 148 megawatts of solar capacity came online in 2007, an increase of 46.5 per cent compared to 2006.