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Plankton Energy

Commercial Solar Financing Options

Plankton Energy structures solar deals around your property, not the other way around. We offer multiple financing paths—including zero upfront cost options—to meet the needs of diverse ownership models, from REITs and nonprofits to manufacturers and mixed-use landlords. Whether you want to lower operating costs, unlock new lease revenue, or maximize tax credits and long-term ROI, our team will design the right path forward using our development and financial structuring expertise. Explore commercial solar financing options from Plankton Energy, designed to help businesses and property owners fund solar projects and maximize value.

Power Purchase Agreement (“PPA”)

A PPA is a 15–25 year contract where Plankton sells you clean energy at a price below the utility rate. The PPA allows you to save considerably on your electric bill with zero upfront cost.

Site Lease Agreement

Become a solar landlord. Plankton rents your roof, parking lot, or land, and we take care of everything else. We sell the energy to the utility or to other customers in your community through a Community Solar Program, and you simply receive rent payments—with zero upfront cost.

Direct Purchase

Own your future. Invest directly in a solar system and capture all available incentives—including the 30% Federal ITC and state programs. You benefit from maximum long-term savings, increased property value, and full control over your clean energy asset.
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PLANKTON ENERGY

Incentives

Plankton Energy helps property owners maximize solar savings through a suite of incentives—each tailored to your ownership model and project location. Whether you’re investing directly or leasing your roof, our team ensures you capture every dollar available through local, state, and federal programs.

    • 30% Federal Investment Tax Credit (ITC): System owners can claim a 30% credit on eligible project costs, significantly reducing the upfront capital burden.

       

    • MACRS + Bonus Depreciation: Businesses can further accelerate payback by deducting a large portion of the system value in year one through bonus depreciation, followed by MACRS over five years.

       

    • State Incentive Programs: From Massachusetts’s SMART program to New Jersey’s SuSI program, New York’s NY-Sun, and California’s NEM 3.0, states offer meaningful adders — like per-kWh payments, renewable energy certificates, net metering, and rebate programs — that boost ROI.

Frequently asked questions about commercial solar financing

What financial returns can commercial property owners expect from a solar investment?

Returns depend on the property’s electricity rates, the incentives available in its state, and the structure chosen. For well-structured, owner-financed commercial systems, unlevered project IRRs have typically ranged from about 8% to 25%, with simple paybacks of roughly three to nine years, driven by long-term utility savings, MACRS accelerated depreciation and the federal Investment Tax Credit where the project qualifies. Under a PPA or site lease the owner takes no capital risk and the return arrives as lower power costs or lease income. Plankton Energy models the full economics for every project; for the current status of the federal credit, read when the commercial solar ITC deadline falls.

What is the difference between a solar PPA, a site lease and owning the system?

Under a power purchase agreement, Plankton Energy finances, owns and operates the system and the property buys the electricity at a fixed rate below the utility’s, with no capital outlay. Under a site lease, the owner hosts the system on its roof or parking lot, receives lease income, and the power serves community-solar subscribers or the grid. With direct ownership, the property pays for the system and keeps all of the savings and the tax benefits. The right choice depends on the owner’s tax position, capital plans and appetite for operating a long-term asset.

Do commercial solar incentives vary by state?

Yes, and state programs often matter as much as federal tax treatment. Massachusetts pays commercial hosts through the SMART program alongside net metering; New York’s NY-Sun program supports projects in Con Edison and upstate utility territories; New Jersey’s SuSI program pays per megawatt-hour generated; and Connecticut’s school projects have used ZREC contracts. Because the rules differ, Plankton Energy models each project under its own state and utility framework. Start with our Massachusetts commercial solar page or the state pages under Our Portfolio.