Agriculture Solar Finance Program
EXCLUSIVE PROGRAM FOR FARM & FARM RELATED COMPANYs

FAQs

Q. Do I have to pay a deposit, down payment, or other up-front cost?

A. No. The first payment you make if for the first monthly lease payment due at the end of the first month of the lease

Q. I am a non-profit or I cannot take the Federal Investment Tax Credit (ITC) on my tax return. How can I take advantage of the 30% ITC

A. The Bank holds the ITC and depreciation and uses them to substantially reduce the turnkey system price on the lease.

Q. Can I keep the SREC and other incentives

A. Yes. All of the SREC monies, grant, PBI, and all other incentive and the income they produce are yours.

Q. What do I have to do to receive a written quote

A. Send us copies of your electric bills for all meters for the past year, tell us the address of the farm, and provide your name and contact information. It will take 4 or 5 days to receive a quote.

Q. Is there a cost for the quote

A. No. There is no cost for the quote

Q. Is there an obligation to buy if I receive a written quote

A. There is no obligation to buy

Q. Is this a PPA, a financed purchase, or a lease

A. Equipment lease

Q. How long is the lease term

A. 10 years  120 payments

Q. What happens at the end of the lease

A. You have two options:
1. Extend the lease
2. Purchase the system at fair market value, usually 12% of the original system turnkey price (financing available)

Q. May I build a solar system and sell the power to the grid or another party

A. There are very specific rules regarding selling to other partys. In certain cases you can.

Q. What is the smallest solar system that qualifies for the program

A. 182 kW or $500,000 turnkey price

Q. Do I have to pay a deposit, down payment, or other up front cost

A. No. The first payment you make is for the first monthly lease payment due at the end of the first month of the lease

Q. How does this lease compare with a Power Purchase Agreement (PPA)

A. The Lease provides power at a lower cost than a PPA and it has a shorter term. There are no comparisons dollar wise.

Q. Will this lower my cost of electricity

A. In NJ with an active SREC market, your cost of electricity is reduced. Maryland, Massachusetts, and New Jersey are three SREC states where the program can save you significant money.

Q. What is the payback period using the Lease

A. There is no deposit or down payment, so the payback is realized with your first lease payment in the form of lower electric cost.

Q. Do I still have to make the lease payments if I earn SREC income

A. Yes. You will have to make all of the lease payment to the bank. The SREC income is yours and you may do anything you like with it.

Q. How much money will this lease program save me

A. That depends on where your farm is located and the SRECs and other incentives you earn. The estimated savings is between 60% and 90% of your current electricity cost

Q. Is the program available in my state

A. The program is available in all 50 states

Q. Who is the lessor

A. The Bank under the Farm Administration (FCA)

Q. Will I qualify for a lease

A. The Bank will make that determination based upon FCA guidelines.

Q. What collateral is required

A. The Bank will make that determination based upon FCA guidelines

Q. How are lease rates determined

A. The Bank calculates lease rates after applying credit for ITC and depreciation. The lease rate is determine by a changing set of guidelines similar to home mortgages

Q. How can I sell my SRECs

A. You may sell them through any of the large SREC aggregators like flettexchange.com and srectrade.com, or though any of the many SREC brokers in your state. You may also elect to sell them yourself.

Q. What do I have to do to receive a written quote

A. Send us copies of your electric bills for all meters for the past year, tell us the address of the farm, and provide your name and contact information. It will take 4 or 5 days to receive a quote.

Q. What if the SREC price drops and I don't earn as much income

A. SREC prices are expected to rise as RPS percentages increase, but no one can predict the future price of SREC. Your SREC broker can advise you of when to sell, for how much, and for how many years at a given price

Q. How much out of pocket is this

A. If SREC and other incentives lose half of their value, the out of pocket is the monthly lease payments minus the value of the SREC at that time. The lease payments are fixed while the utility price of power rises 5% per year on average. When compared to the past, current, and projected utility price of electricity you will continue to save money regardless of the possible SREC price decline. Even if SREC lose all of their value, you still save on your electric cost with the Ag Lease.

Q. Do I have to float money until SREC income begins

A. Your SREC Broker can advise you on selling your SREC in advance so they begin at the start of your lease

Q. Who is Solar Development Company and what is their role.

A. Solar Development Company is the Ag Solar Finance Program EPC of Record and the liaison between the solar program and our agriculture solar lease customers.