negative interest rate solar financing
TRANSCRIPT
Solar Program Lease
Payment CalculatorEffective March 1, 2017
This Solar Lease calculation has been prepared for:
Input Assumptions:
Enter Total Project Cost Here of $500,000 or more: 500,000.00$
Assumed Tax Bracket (select 15% - 40%) 30%
NEGATIVE INTEREST RATES are based on project cost: - 8.21%
Rate Factor: 0.008829Lease Term in Months 84
Solar Lease Residual 15% $75,000
Annual Solar Renewable Energy Credits [Monthly]: -$ $0.00
Annual Solar Production Offset [Monthly]: -$ $0.00
Cost Calculation:
Solar Lease Monthly Payment [vs bank at 6%]: $4,414.50 $7,384.72
Less Estimated Monthly SREC and Production Credit: $0.00
Projected Monthly Net Out-of-Pocket: $4,414.50
Solar Lease Payments X Term Length = 370,818.00$
Add the Solar Lease Residual or FMV = 75,000$
Subtract the Estimated SRECs & Production Credits = -$
*Result = Total Lease Payment Expense [vs bank at 6%]: 445,818.00$ $620,316.29
Cash Out-of Pocket cost is reduced by: 11%
...and when compared with conventional financing at 6%: 40%
Tax Benefit Cost Reductions (based on tax bracket):
Depreciation of Residual: 22,500.00$
If lease payment is accounted for as an expense: 133,745.40$
Estimated Net Cost: 289,573$
Your Customer's Name Here
* A (Net Paid Out) figure in parentheses represents a scenario in which the incentives exceed the expense producing a
net income situation. Income tax liability should be anticipated. Consult with your CPA.
Solar Tax Lease Financing is offered to renewable energy equipment suppliers, re-sellers and installers and their
customers throughout the United States by CMG Commercial Finance LLC, in cooperation with its underwriting services
representative and their solar equipment lender.
Yes, the interest rate is
negative!
Offered through
CMG Commercial Finance
42459 Bradner Road
Northville, MI 48168
Contact: David Gaddis
248-773-7580
3/29/2017, 9:32 AM
CG Solar Calculator 03.29.2017.xlsx