The solar service model is an innovative way for companies to switch to solar power without making typically large up-front investments. The New York Times ran a story on how General Motors added solar power to one of its warehouses using this purchasing model.
WRI’s Green Power Market Development Group has been instrumental in developing and fostering the solar service model. It typically works like this:
The solar service financing model has multiple benefits for both the developer and the customer. It gives customers a way to switch solar electricity at competitive rates without costly up-front investments, which strengthens the business case for renewable energy. Developers, of course, get more business. Many states have tax incentives for solar energy, and developers and customers typically negotiate sharing agreements for these benefits. Or they could sell carbon credits to help other companies meet regulatory requirements.