Enphase partners with TCC to finance third-party solar

Microinverter maker Enphase Energy has announced a partnership with Technology Credit Corporation (TCC) to provide financing for solar PV systems in the small-to-medium commercial sector, focusing on systems up to 50 kilowatts (KW).

Through the partnership, TCC is providing leases and power purchase agreements (PPAs) both through installers and directly to end customers, utilizing Enphase’s sales channels. The company currently has more than 300 commercial PV systems under finance, which it says makes it one of the largest providers of small commercial financing in the United States.

TCC describes the small commercial market as “especially challenging and traditionally under-served”, noting that most third-party financing providers typically address either the residential sector or larger commercial PV systems and utility-scale plants.

The company says that its offerings have been particularly attractive with non-profit organizations, and among the customers participating in the new partnership is Mental Health Kokua in Hawaii. Utilizing TCC’s financing options and Enphase microinverters, local contractor Dugied Construction installed PV arrays on 28 of the non-profit’s buildings on four islands, totaling 270 KW.

TCC notes that its financial products are slightly different than other third-party products, and include 15-year PPAs. The company’s background is equipment finance, and TCC says that its leases and PPAs “fast-track customer ownership of the system”.

“We’re a little bit more clear about the buy-out options, and we are willing to finance the buy-out, instead of asking customers to cut a large check to own the system,” notes TCC VP of Business Development Mark Schmidt.

“After the ITC claw-back period of 5 years, we are willing and able to change from a per KW payment to a financing payment. So you are switching from a PPA to a loan for 5 years, 10 years, 15 years, and you start making loan payments that go down to zero.”