Is your reclamation district considering a solar project to cut costs and improve sustainability? Energy costs can add up quickly, and districts have been installing solar panels and storage systems for long-term savings and greater energy resiliency.
Since energy savings build up over time, financing a solar project lets you spread out the cost while enjoying the benefits right away.
Paying for a solar project upfront can be a big expense. Financing makes it much more manageable.
Reclamation districts benefit from tax-exempt financing, which comes with lower interest rates than typical loans. This helps keep costs down and make the project more affordable.
One of the most efficient ways for a reclamation district to finance a solar project is through a municipal equipment lease. Here’s why it makes sense:
You might hear “lease” and think of a car lease, but this is different. With a municipal equipment lease:
Not every bank is equipped to handle municipal equipment leases—your local bank may not even know where to start. Instead, specialized public finance divisions of certain banks offer this type of financing. To get the best deal, it’s a good idea to run a competitive Request for Proposals (RFP) process.
Once your financing is in place, you’ll have a couple of ongoing responsibilities:
Municipal financing can be complex, with plenty of details and nuances. Each bank has different terms and covenants. How can you make sure that you get a good deal that is the right fit for your district?
A municipal advisor can guide you through the process, helping you structure the financing, avoid mistakes, and ensure on-going compliance. As fiduciaries, municipal advisors are legally required to act in the district’s best interest, providing independent, unbiased advice. They assist with evaluating financing options, conducting competitive lender selection processes, negotiating terms, and ensuring all legal and reporting requirements are met.
Ridgeline Municipal Strategies, LLC is an independent registered municipal advisory and financial consulting firm assisting cities and special districts with financial planning and financing for infrastructure, facilities, and equipment.
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