When running a business, cutting costs while boosting sustainability should be a no-brainer. Enter solar power—a bright solution (pun intended) that promises both positive environmental impact and financial savings. But how do the different solar programs, especially rooftop leases and Power Purchase Agreements (PPAs), stack up regarding benefits? Let’s break down how your business can make the most of solar in states like New York, New Jersey, Connecticut, Massachusetts, and Pennsylvania.
Why Solar?
Before we dive into the specifics, let’s address the big question: Why should your business consider solar in the first place?
- Cost Savings: Solar power through a PPA can significantly reduce your utility bills. With the proper solar array setup, your business can generate its own energy on-site and lower its electricity costs. Off-site solar, like community solar, also offers its own savings.
- Increased Property Value: Going solar can increase the value of your commercial property, making it a more attractive asset to potential buyers if you decide to sell in the future.
- Tax Incentives: Federal tax credits, state-specific incentives, and rebates are available to offset the upfront costs of solar installation. Talk to your tax advisor to learn if you are eligible.
- Sustainability: More and more customers are drawn to environmentally responsible businesses. Solar energy is clean, renewable, and great for boosting your ESG goals.
Now, let’s get into the nitty-gritty of how your business can tap into these benefits, primarily through two popular solar program options: rooftop leases and PPAs.
Rooftop Lease vs. PPA: What’s the Difference?
At first glance, rooftop leases and PPAs might seem like two peas in a pod, but each offers its own unique advantages depending on your business’s needs and location. Here’s a brief breakdown:
- Rooftop Lease: Your roof is a great way to earn additional revenue. Your business leases the rooftop space to an integrated provider like Catalyst Power, which installs and maintains the solar array for you. In exchange, the solar provider owns the system and reaps the energy savings, while you earn a monthly lease payment for hosting the panels. Check out our blog post on things you should know when considering a rooftop lease.
- PPA: With a PPA, your business agrees to buy the energy produced by the solar energy system at a long-term fixed rate. This setup typically requires little to no upfront investment. With Catalyst Power, there are no upfront costs at all!
What’s Available in Your State?
Now that we’ve covered the basics of rooftop leases vs. PPAs, let’s look at what solar options are available in some of Catalyst Power's target states: New York, Connecticut, Massachusetts, and Pennsylvania. After all, solar incentives and programs can vary depending on your location.
New York (NY)
NY is a powerhouse when it comes to solar incentives. Throughout NY, you can do a behind-the-meter PPA, and commercial buildings in the ConEdison footprint have the additional potential for lucrative rooftop solar leases. There are plenty of solar options for small and medium-sized businesses in NY!
New Jersey (NJ)
New Jersey is a well-established PPA market. Businesses in NJ are used to and comfortable with reducing their energy costs through solar installations. There are legislative rumblings of a fully-fledged Community Solar program coming down the pipeline that would allow for solar leasing and further enable renewable energy in the Garden State.
Connecticut (CT)
Thanks to CT’s Non-Residential Renewable Energy Solutions (NRES) program, commercial businesses are eligible for clean energy incentives. NRES is designed to make solar energy accessible to smaller businesses and promote the development of more renewable energy projects. Catalyst Power is currently seeking buildings in the 15k-30k sqft usable space range for rooftop leases!
Massachusetts (MA)
Thanks to programs like the SMART (Solar Massachusetts Renewable Target) program, MA has one of the most favorable solar environments. With options for both rooftop leases and PPAs, businesses can either reduce their energy costs and carbon footprint or earn lease payments for hosting Catalyst Power solar panel systems. There have been significant updates to the program in 2024, and it now offers enhanced financial incentives. You can lease as part of the MA SMART program (more on that here) or get behind-the-meter PPA, driving down some of the highest electricity rates in the country.
Pennsylvania (PA)
Behind-the-meter PPAs are a great solution in PA, where solar energy rates can be more predictable than fluctuating utility prices. For those just interested in simply monetizing a dormant asset, Catalyst Power also offers net-metered leases here, capped at 500kW.
Conclusion: The Solar Advantage
The bottom line is simple: Going solar can give your business financial advantages, sustainability boosts, and long-term energy savings. Whether you opt for a rooftop lease or a PPA depends on your business goals—whether you're more interested in upfront savings or earning income from leasing your rooftop space. But no matter the path you take, Catalyst Power has your back, offering the perfect solution tailored to your state’s incentives and solar landscape.
