We advise CA solar owners on registration & sale of Renewable Energy Certificates
New Jersey, New York & The Northeast
New Jersey: Most compelling commercial solar economics in 2023
The New Jersey commercial solar market is driven by the state incentive - known as the Successor Solar Incentive (SuSI) - coupled with high electric utility rates.
The State has reformed and restructured the prior floating-rate SREC program to provide financial certainty. The new SuSI program mitigates the significant customer misunderstanding and developer misrepresentation under the prior program. Floating-rate SREC programs were originally conceived as a market-based incentive program. However, the significant price declines in solar PV a decade ago resulted in a fully-supplied NJ solar market that crashed market SREC values.
The SuSI program provides a fixed rate per MWH for a 15 year term. This structure provides visibility for both customers and investors. In New Jersey, Painted Rock Capital offers:
- A commercial solar loan program, for customers that are fully able to take the 30% Investment Tax Credit against their Federal taxable income.
- A Power Purchase Agreement (PPA) solution that provides system financing and tax credit monetization, as well as a pay-only-for-performance contract.
PPA - Power Purchase Agreement financing
With our Power Purchase Agreement (PPA) financing, our investors are responsible for:
- Financing 100% of the installation of the system with one of our qualified installers
- Monetizing the Investment Tax Credit (ITC)
- Monetizing the Successor Solar Incentive (SuSI), and
- Monitoring and maintaining the system to ensure it produces power - so you pay only for power produced.
We offer our customers a simple, compelling fixed rate per kWh generated. We are typically able to deliver commercial electric cost reductions of 10% to 25% over customers' existing utility bills. The PPA rate for each project is based on the specific system production and cost.
We have been financing solar projects since 2008, and our investors have over 300 completed systems under finance.
We specialize in financing for houses of worship, private schools and other nonprofit organizations. We finance a wide range of commercial and industrial businesses as well.
Solar loan financing
Painted Rock Capital offers solar loan financing, with loan terms up to 15 or 20 years. Under this structure, the customer owns the system and is directly responsible for monetizing the ITC and the SuSI.
The loan offering is best suited to customers that are fully prepared to own solar and take advantage of the Federal income tax benefits associated with solar.
Property Assessed Capital Expenditures: PACE Financing
PACE financing is now a viable financing opportunity in select areas of New York, Maryland, Connecticut, Pennsylvania and Ohio. Please see our What is PACE page for more information. Note that although New Jersey has approved PACE legislation, PACE financing is not expected to be active in the state for the near term. Painted Rock Capital is active in the PACE capital markets, and will be the first to advise our clients when this is an option in the Garden State.
Contractors and Developers
Painted Rock Capital and our project investors seek to work with a select group of experienced commercial solar installation partners. We are actively supporting commercial projects throughout New Jersey, and welcome the opportunity to discuss specific projects.
Under a Power Purchase Agreement, our investors take on significant financial and operational responsibility for the system for up to a 25 year term. Our longstanding institutional investor relationships enable us to provide reliable PPA solutions at competitive rates. In order to deliver long-term system financing and operation, we rely on the expertise of our installation partners in delivering quality solar assets.
We partner with contractors that have a track record installing commercial projects, and that have the in-house capabilities to design systems and model performance and utility cost savings. We seek contractors that are familiar with New Jersey utility rates, and experienced with commercial system permitting, installation and interconnection.
Northeast
Beyond New Jersey, Painted Rock Capital is actively financing solar projects and commercial real estate upgrades across a number of states:
- New York - Solar projects are most compelling in the New York City and Westchester areas, with utility costs typically exceeding $.12 - $.15 per kWh.
- Maryland
- Washington DC
- Selective MA projects
PACE - Property Assessed Capital Expenditures: Painted Rock Capital also finances solar and real estate projects with PACE financing. PACE financing is available in selected portions of New York, Maryland, DC, Connecticut, Pennsylvania, Ohio and other states.
Northeast Financing Track Record
Our prior Northeast financing portfolio across American Renewable Capital (ARC) and Technology Credit Corporation (TCC). We now finance PPA, PACE and loan projects with a proprietary roster of institutional investor partners.