Solar Project Financing Guide
CAPEX · PPA · Lease · PACE · Bonds (2026)

Underestimating the cost of non-production time. Every week delay between CAPEX signing and commissioning = 1/52 of first-year revenue lost (never recovered). For a $1M project generating $200K/yr, that's ~$4K per week. Rushing equipment selection or cutting corners on EPC contract terms to save 1% CAPEX often loses 3-5x that in delays. Budget 10-15% more contingency + pick proven suppliers.

LCOE = (Total Lifetime Cost) ÷ (Total Lifetime Energy) ÷ Discount factor. Total lifetime cost = CAPEX + sum of OPEX over project life, discounted. Total lifetime energy = Year-1 output × (1 - degradation)^t summed. Use our free ROI calculator which computes LCOE automatically once you enter system size, location, and CAPEX.

CAPEX (buy outright) when: you have cash or cheap debt; want maximum long-term savings; plan to own the property 10+ years; in a market with valuable tax incentives. PPA when: zero CAPEX is mandatory; you want instant guaranteed savings without capital outlay; you need off-balance-sheet treatment; you don't want O&M responsibility. For most C&I buyers with capital, CAPEX produces better 25-year NPV by 30-50%.

Significantly. Modules are typically 25-35% of total CAPEX. A $0.02/W savings on modules (e.g. JUSTSOLAR factory-direct vs Tier-1 distributor) on a 1 MW project = $20K CAPEX saved. At 20% IRR baseline, that's equivalent to adding ~1.2 percentage points to IRR. Over 25 years, compounds to $50-80K NPV improvement. Hence the rationale for sourcing modules direct from factory vs branded distributors.

Yes — this is called equipment finance or trade finance, common for larger orders. JUSTSOLAR can provide lender documentation for project review, but payment terms are confirmed only in the formal PI or signed contract. For new buyers and most first orders, standard is 100% T/T before shipment. Any bank-instrument or milestone-payment exception requires written approval from Frank.

For project-financed utility-scale (20+ MW): (a) BNEF Tier-1 module (currently ~30 brands qualify), (b) 25+30 year warranty backed by manufacturer, (c) PPA with creditworthy offtaker, (d) bankable EPC contractor with performance guarantees. JUSTSOLAR is Tier-1 adjacent — we can supply as sub-supplier under a Tier-1 branded module wrap for bankability if needed. For C&I and distributed generation (under 20 MW), we supply directly without the bankability constraint.