The Three Primary Solar Structures

Every commercial solar project falls
into one of three structures:

Ownership

Capital-intensive. Highest control. Balance-sheet exposure.

Solar Lease

Fixed payments. Moderate flexibility.
Off-balance-sheet potential.

PPA

Zero upfront capital. Long-term
energy pricing.
Contract-driven risk.

Solar Ownership

How It Works

You purchase and own the solar asset directly, either with cash or financing.
The system appears on your balance sheet and you retain full control.

Best For

Best for organizations willing to deploy capital in exchange for long-term control
and lowest lifetime energy cost.

When Ownership Works Best

You can efficiently use tax credits and depreciation
Capital is committed upfront and unavailable for other strategic uses
You want maximum long-term savings and asset control
You have available capital or access to low-cost financing
Returns depend on long-term operating assumptions, not guarantees
Performance, maintenance, and operating risk remain internal

Ownership can deliver
strong returns
but only when capital
allocation and risk
exposure are appropriate.

Solar Lease

How It Works

You lease the solar system for a fixed monthly payment.
The asset is typically owned by a third party while you benefit from the energy produced.

Best For

Best for organizations seeking solar savings without taking on ownership or operational responsibility.

When a Lease Makes Sense

You want predictable payments without system ownership
You prefer to preserve capital for core operations
You want solar savings without full operational responsibility

What a Lease Requires
from the Organization

Acceptance that savings are capped by
the lease structure
Willingness to operate within fixed
contract terms over time
Careful review of flexibility, escalation,
and exit provisions

A lease can be effective — but only when terms are pressure-tested against long-term operating realities.

Power Purchase Agreement (PPA)

How It Works

A third party owns, operates, and maintains the solar system.
You purchase the electricity produced
at a fixed or indexed rate — often with
zero upfront cost.

Best For

Best for organizations prioritizing capital preservation, immediate savings, and risk transfer over asset ownership.

When a PPA Makes Sense

Capital preservation is a priority
You want immediate energy savings without ownership risk
You prefer costs to stay off the balance sheet
You want solar without deploying
internal resources

What a PPA Requires from
the Organization

Contract structure matters more than headline price
Not all PPAs are created equal
Escalators, term length, and buyout options must be evaluated

A well-structured PPA can
lower energy costs from day
one while shifting ownership
and performance risk away
from the organization.

incentives

Zero-Down Solar and Capital Preservation

Solar does not always require capital investment or balance-sheet financing.Through properly structured PPAs and select lease models, solar can be deployed without upfront capital, without new debt, and with immediate utility cost reduction.For many leadership teams, preserving liquidity and credit capacity produces a stronger financial outcome than owning the asset outright.

Incentive Review

Federal, state, and utility incentives — including the federal Investment Tax Credit (ITC) — are validated and documented, then incorporated only where they strengthen the financial outcome, not where they are required to make the structure viable.

Conservative Modeling

Grants, tax credits, and the ITC are modeled conservatively, with timing, eligibility, transferability, and realization risk explicitly accounted for.

Structure-First Discipline

Each structure must perform independently of incentives and remain defensible if grants, tax credits, or the ITC are delayed, reduced, or eliminated.

How Solar Is Structured and Why Financial Structure Matters

The Three Primary Solar Structures

Ownership

Solar Lease

PPA

Solar Ownership

How It Works

Best For

When Ownership Works Best

Solar Lease

How It Works

Best For

When a Lease Makes Sense

What a Lease Requires from the Organization

Power Purchase Agreement (PPA)

How It Works

Best For

When a PPA Makes Sense

What a PPA Requires from the Organization

Zero-Down Solar and Capital Preservation

Incentive Review

Conservative Modeling

Structure-First Discipline

What a Lease Requires
from the Organization

What a PPA Requires from
the Organization