Frequently Asked Questions (FAQ)
Cherry Street Energy’s vertically-integrated business structure streamlines the incorporation of solar power for businesses and organizations. We design, build, monitor, and maintain industry-leading solar power systems for our customers, owning these systems over their lifetimes and providing the energy produced back to the facility the system resides on - selling it through a power purchase agreement to our customers at a competitively priced cents-per-kWh rate.
As the host site (rather than the system owner), you don’t directly claim tax benefits like the federal Investment Tax Credit (ITC). However, you do benefit from these incentives indirectly through lower energy pricing.
Here’s how the incentives work in our model:
- Federal Investment Tax Credit: This significant tax benefit flows to Cherry Street as the system owner/investor. Rather than keeping this benefit for us, we factor it into our financial model to offer you a more competitive Contract Energy Price. The tax credit essentially subsidizes the construction cost, allowing us to charge less for the solar energy we deliver.
- Environmental Attributes: While monetary incentives generally accrue to us as the system owner, you can claim the Environmental Attributes (RECs) associated with the system’s production if you choose. Section 5.7.1 of the agreement allows you to retain these RECs at no additional cost, which can be valuable for:
- Documenting progress toward sustainability goals
- Supporting environmental reporting
- Demonstrating your commitment to renewable energy
- Regional Incentives: Some jurisdictions offer additional benefits that may be available to you as the host site. These vary by location and can include:
- Property tax exemptions for hosting renewable energy
- Local utility incentive programs
- State-specific grant programs
The most significant financial benefit you receive is the stable, predictable energy pricing over the 20+ year term, which is enhanced by our ability to monetize tax incentives that would otherwise be unavailable to most non-profit, government, and commercial entities.
Your property taxes should not increase as a result of our solar system installation. The system remains Cherry Street’s personal property, not yours, which means:
- Legal ownership: The solar equipment is owned, operated, and insured by Cherry Street Energy, not by your organization.
- Tax assessment precedent: Across our portfolio of over 140 installations, we have not encountered situations where our customers experienced property tax increases attributable to our solar systems.
- Tax responsibility clarification: Our agreement does specify that if there were to be any increase in your real property taxes, regardless of cause, those would remain your responsibility, as our pricing model assumes we don’t bear those costs.
In the unlikely event that a local tax authority attempts to increase your property taxes due to our system, we would work with you to explain the ownership structure and contest such an assessment, as it would be inconsistent with the fact that you don’t own the solar equipment.
Similarly, personal property (ad valorem) taxes might theoretically be assessed on the system, which would be Cherry Street’s responsibility. While our standard agreement allows us to pass these costs through to customers, we have never had to do so as our systems have not been subject to ad valorem taxation in practice.
Our experience demonstrates that tax implications have not been an issue for our customers, allowing them to focus on the primary benefits of clean energy and predictable pricing.
The solar system should not affect your premiums for coverage because we insure it as the system owner. We maintain comprehensive insurance coverage, including general liability coverage, against losses to the system or arising from our operations. In our experience across numerous installations, we have not encountered instances where a customer's insurer has increased premiums based on the presence of our solar system. However, we recommend informing your insurance provider about the installation as a matter of standard disclosure.
The visibility of your solar installation depends primarily on its location and your facility’s design. Most of our installations are rooftop systems that have minimal visibility from ground level. For these standard rooftop installations, the aesthetic impact is negligible.
Our standard agreement reflects this reality, with a streamlined design process that focuses on system performance and efficiency. Per Section 5.2.1, “Seller shall have sole responsibility for the design of each Facility,” as this approach allows us to optimize energy production and maintain cost-effectiveness.
However, we recognize that aesthetics can be particularly important in certain situations, such as:
- Ground-mounted systems visible to the public
- Facilities with architectural significance
- Buildings where corporate branding and appearance are priorities
- Campuses with specific design guidelines
In these cases, we’re happy to adjust our standard agreement to provide you with greater design review and approval rights. While not explicitly stated in the standard agreement, we regularly work with customers to incorporate their aesthetic preferences.
If aesthetic considerations are important to your organization, we recommend discussing this early in the process. We can work together to:
- Establish clear design parameters and approval checkpoints
- Consider alternative mounting options or panel configurations
- Explore custom solutions that maintain both performance and appearance
- Provide 3D renderings or visualizations of the proposed installation
The only practical consideration is that significant redesigns or specialized aesthetic requirements may affect system performance or costs. In cases where extensive design modifications are requested, we may need to include language allowing for price adjustments if requested material design changes substantially impact our construction costs.
Our goal is to provide a system that meets both your renewable energy needs and aesthetic standards. We’re committed to finding the right balance for your specific situation.
The installation timeline varies based on system size and complexity but typically ranges from 4 to 8 weeks for most commercial installations. Smaller systems may be completed in as little as two weeks, while larger or more complex installations might take longer.
We design our installation process to minimize disruption to your operations. Here’s what you can expect:
- Coordinated scheduling: Before construction begins, we work with your team to establish a timeline that accommodates your operational needs. If particular construction windows work better for your organization (such as summer months for schools or slower seasons for your business), we can schedule accordingly.
- Dedicated project team: Each project is assigned a dedicated Cherry Street Project Manager and Site Superintendent who serve as your primary points of contact throughout the installation. They ensure construction proceeds efficiently while respecting your site requirements.
- Minimal interior work: Most of the installation activity occurs on the roof or exterior spaces, with limited need to access interior areas except for electrical connections.
- Compliance with your protocols: As outlined in Section 3.1 of the agreement, we strictly adhere to “any Facility Site-specific policies and procedures governing site access, safety or security” that you provide. This includes following all security clearance procedures, parking restrictions, and noise limitations.
- Safe work zones: We establish clearly defined work areas that are safely separated from your normal operations, with appropriate barriers and signage.
The agreement provides flexibility to address any site-specific concerns you may have. While our standard agreement establishes general parameters for construction, we can adjust these terms to accommodate particular sensitivities or requirements at your facility.
Most customers find that our installation process causes minimal disruption to their daily operations, and many are surprised by how seamlessly the project proceeds from start to finish.
At the end of the Term, when we decommission the system, Cherry Street will remove all equipment from your property and responsibly recycle or dispose of the components according to industry best practices and environmental regulations. Most solar panels can be recycled, with up to 90% of materials recoverable for future use. The silicon, aluminum, copper, and glass components all have recycling value. Cherry Street is committed to sustainable practices throughout the entire lifecycle of our solar energy systems.
Our business model creates a natural alignment of interests that works better for our customers than a traditional performance guarantee. Since we only get paid for the energy the system produces and delivers, we have an extremely strong financial incentive to maximize system performance throughout the Term.
This “pay-for-production” model means we’re essentially guaranteeing our own performance through our actions rather than just contractual language. We proactively monitor all our systems in real-time, quickly address any performance issues, and are contractually obligated under Section 7.4.2 to “maintain each Facility in good working condition” at our sole cost.
Unlike traditional vendors who might collect the same fee regardless of system performance, our revenue is directly tied to how well your system operates. If production drops, our revenue drops immediately – creating a powerful motivation for us to keep your system running optimally at all times.
Many of our customers find this built-in accountability more valuable than a paper guarantee that typically involves complex measurement methodologies, exclusions, or bureaucratic claim processes.
Our maintenance approach is specifically designed to minimize any disruption to your operations. We provide comprehensive operations and maintenance (O&M) services at no additional cost, with a focus on remote monitoring and preventative maintenance that avoids interrupting your business activities.
Our system combines 24/7 remote performance monitoring through an online platform with strategically scheduled on-site maintenance. We can detect most performance issues remotely through our advanced monitoring system, allowing us to address many concerns without ever setting foot on your property.
When on-site visits are necessary, we:
- Coordinate all visits in advance with your team
- Adhere to your specific site access policies and security procedures
- Schedule maintenance during times that work best for your operations
- Perform most maintenance without any power interruption or shutdown
Our routine maintenance is minimally intrusive. For example, panel cleaning might utilize specialized robots for larger arrays, and we employ thermal drone flights to efficiently identify potential issues without extensive on-site work. These technologies allow us to pinpoint performance issues and perform only targeted maintenance when needed.
The agreement (Section 7.1.2) explicitly requires us to “coordinate all planned maintenance with Purchaser to avoid material interference with the normal use of each Facility Site.” We take this obligation seriously, understanding that your core business operations must continue without interruption.
Our comprehensive maintenance protocol covers everything from PV array inspections and equipment maintenance to monitoring system checks and general site assessment — all managed to ensure your system performs optimally throughout the Term while respecting your operational needs.
For systems that are 250 kW-AC or higher, we will need to schedule an outage of your facility in the middle of the day for one day to allow for utility testing. This is a one-time event that is scheduled at the conclusion of construction so that your utility provider can perform “witness testing” and provide formal approval for the system to commence operations. The witness test can usually be scheduled on a weekend, if desired by the customer to avoid interference with operations.
We design our systems with adaptability in mind, typically sizing them to offset approximately 30% of your current electricity consumption. This “right-sizing” approach provides an important buffer that accommodates most changes in energy usage patterns without creating issues. It also limits exports of solar energy to the grid, for which utilities currently offer only minimal compensation.
If your energy needs increase, our framework agreement allows us to add more solar capacity through an “Added Facility” (Section 19.7.2) without negotiating an entirely new agreement. This lets you maintain or even increase the percentage of your energy coming from renewable sources. Alternatively, you can simply purchase the additional electricity you need from your utility provider, as our system is designed to be just one component of your overall energy solution.
If your energy usage decreases, you'll still purchase all the energy produced by the system, but this simply means a higher percentage of your total energy needs will be met with clean, renewable energy at your contracted rate. Because our systems are conservatively sized based on initial needs, even significant reductions in energy consumption generally won’t result in problematic overproduction.
For substantial changes in energy requirements, we offer several flexible options:
- Battery Integration: Our agreement allows for the addition of battery energy storage through an addendum (Section 19.7.3). Batteries can store excess production during periods of lower usage and discharge it when your needs increase, optimizing the system’s value.
- System Relocation: If you move operations to a different facility, Section 19.7.4 provides the option to relocate the system to your new location.
The energy landscape is evolving toward a more distributed structure where on-site generation combined with storage provides increasing flexibility. Our framework agreement is designed to accommodate this evolution, allowing us to adapt as your energy needs change throughout the Term.
Yes, absolutely. We provide all customers with complimentary access to the same advanced monitoring platform we use to track our systems’ performance. Through our online monitoring platform, you’ll have instant access to real-time data showing exactly how your solar system is performing.
The user-friendly customer portal gives you:
- Real-time and historical production data
- System performance analytics
- Environmental impact metrics
- Customizable reporting capabilities
What makes this particularly valuable is the Solar Impact Tracker feature, which translates technical production data into actionable sustainability metrics. This helps you quantify and communicate your facility’s environmental benefits to stakeholders, employees, and customers — making it easier to showcase your sustainability achievements.
The platform is accessible anytime from any device with internet access, allowing you to check system performance whenever and wherever you want. You can set up custom alerts for production milestones or track performance against expectations.
Many of our customers find this transparency valuable not only for validating their solar investment but also for educational purposes and sustainability reporting. The monitoring platform gives you visibility into the same performance data we use, ensuring complete transparency regarding your system’s operation and the energy it produces.
In its standard configuration, our solar system will not provide backup power during a grid outage. This is due to anti-islanding requirements imposed by utility providers for safety reasons. When the grid goes down, the solar system automatically shuts down as well to prevent energizing power lines that utility workers may be repairing.
However, the energy landscape is evolving rapidly with the emergence of battery energy storage systems. While standard solar installations don’t provide backup power, adding battery storage to your solar system can change this. That’s why our agreement includes provisions for “Facility Upgrades” (Section 19.7.3) that specifically allow for the addition of energy storage equipment in the future when it makes sense for the customer.
With battery storage integrated into your solar system, you could potentially maintain power during grid outages through:
- Microgrid capability: A properly designed solar + storage system can create a self-contained microgrid that continues to function when disconnected from the main grid.
- Critical load backup: Battery systems can be configured to power essential equipment during outages, even if not supporting your entire facility.
- Seamless transition: Advanced systems can switch to backup mode automatically when grid power is lost, providing uninterrupted power to designated circuits.
This grid-forming capability is one of the most promising aspects of modern renewable energy systems. As battery technology continues to improve and costs decline, adding storage to your solar installation becomes increasingly attractive.
If backup power is important for your operations, we recommend discussing battery storage options either as part of your initial solar installation or as a planned future upgrade. Our team can assess your backup power needs and design a solution that provides the resilience you require.
This depends on your local utility’s net metering policies. In many cases, the excess energy is fed back into the grid, and you may receive a credit from your utility company that can offset your electricity bills. Generally, however, the amount your utility will pay for the excess energy is likely to be less than what you pay us to generate it. For that reason, we design our systems carefully to match your historical energy usage patterns and minimize overproduction.
The installation of our solar system is designed to have no negative impact on your existing roof warranty or building insurance.
Regarding roof warranties, our agreement addresses this concern in Section 5.4.1(iv):“Seller expressly acknowledges and agrees that Seller’s Work shall be performed using such contractors and construction methods (including, without limitation, coordinating any necessary approvals from the manufacturer and/or warrantor of any roof, if applicable) so as to not result in the invalidation of any roof warranties applicable to the Facility Site.”
Before installation, we coordinate directly with your roof manufacturer or warranty provider to ensure our mounting methods and installation procedures comply with their requirements. We obtain necessary approvals and documentation from the roof manufacturer to maintain the validity of your existing warranty. If any special mounting hardware or techniques are required to preserve the warranty, we implement these at our cost.
If any roof damage occurs at any point during the Term that is caused by our system or our activities, we are contractually obligated to repair it promptly at our sole expense. This commitment is explicitly stated in Section 7.4.2(vi) of the agreement, providing you with long-term protection.
If you lease rather than own your property, we can still proceed with a SEPA, but we’ll need the property owner’s consent. And if the site is secured by a mortgage, we will need to execute a Subordination, Non-Disturbance and Attornment Agreement (SNDA) with the property owner and their mortgage holder. This ensures that our agreement remains valid even if the property ownership changes or if there are changes to the lease.
The agreement covers this scenario in Section 19.7.4. If you need to relocate, you have the option to provide Cherry Street with a substitute premises that’s reasonably acceptable. The solar system can then be relocated at your cost, and the agreement will continue without termination. The substitute location needs to be within the same utility territory, have similar solar characteristics, and be owned, leased, or controlled by you or an affiliate. If the new location has inferior solar conditions that affect system performance, there may be an adjustment to the Contract Energy Price to compensate for reduced production.
Battery energy storage can be added to your solar system either at the time of initial installation or as a “Facility Upgrade” later. Section 19.7.3 of the agreement allows for system upgrades during the Term upon mutual agreement of the parties. The addition of battery storage would be handled through an Addendum to the agreement that specifies the scope and adjusted pricing. Battery storage can provide additional benefits such as backup power during outages and the ability to shift energy use to lower your peak demand charges.
One of the key benefits of our SEPA is that Cherry Street bears the risk and responsibility for the solar system in case of natural disasters or severe weather damage. As the system owner, we maintain comprehensive insurance coverage at the system’s full replacement value.
If a storm, hurricane, or other natural disaster damages the solar system:
- No financial burden for you: You won’t incur any costs for repairing or replacing the damaged solar equipment. Our insurance covers these expenses.
- No payment during downtime: Your Monthly Energy-Based Payment automatically abates during the period when the system is non-operational due to damage.
- Our responsibility to restore: We are responsible for repairing or rebuilding the damaged system using available insurance proceeds, and we handle all aspects of the restoration process.
If your building or property supporting the solar system is also damaged, we work cooperatively with you on the restoration timeline. The agreement provides flexibility if substantial repairs are needed:
- If the damage would reasonably take more than 180 days to repair, either party can terminate the agreement for that facility.
- If neither party terminates, you would proceed with your building repairs, and we would reinstall the solar system once the repairs are complete.
- If your repairs extend beyond 180 days and the agreement remains in effect, estimated production billing may apply for the extended period.
Throughout any recovery process, our team coordinates closely with your facilities staff and insurance representatives to ensure a smooth restoration. Our ultimate goal is to get your renewable energy system back online as quickly and efficiently as possible while minimizing any inconvenience to your operations.
This is a reasonable question for any long-term agreement, though it’s important to note that Cherry Street Energy has established a solid financial foundation over our decade in business. We’ve raised over $100 million in capital since 2018, including significant strategic investment from EBSCO Industries in 2022, and we continue to grow with a business model designed for long-term stability.
That said, our agreement includes protections for customers in unlikely scenarios:
- Financing Party Protection: Solar facilities are valuable assets that serve as collateral for our financing. If Cherry Street were to face financial difficulties, the most likely scenario would involve our financing partners (banks or investors) stepping in to preserve the operation of the systems through their collateral rights under Section 19.1.1 of the agreement.
- Seamless Transition: In this scenario, the system would continue operating without disruption, and your rights and obligations under the agreement would remain unchanged. The only difference would be that you’d send your monthly payments to a different entity.
- System Purchase Option: Depending on the circumstances, you might have the option to purchase the system at fair market value, which could be advantageous depending on how long the system has been operating.
- Termination Rights: If a true bankruptcy occurred and the successor entity was unable to fulfill the maintenance and operational obligations under the agreement, you would likely have penalty-free termination rights based on that material breach.
Most solar systems continue operating regardless of the original developer’s status because the fundamental economics remain attractive to subsequent owners. The solar equipment produces valuable electricity for decades, making these assets worth preserving even if ownership changes.
We design our projects to be “bankable” assets that maintain their value over time, ensuring that even in unforeseen circumstances, the systems will continue to provide you with reliable, clean energy at predictable rates.
Cherry Street has established itself as a leader in commercial solar development over the past decade. Since our founding in 2015, we’ve successfully completed more than 140 commercial solar projects across diverse sectors including government, education, commercial, industrial, and non-profit organizations. Our vertically integrated structure means we handle every aspect of solar development in-house, from initial design through construction, operation, and maintenance.
Our financial foundation is robust, having raised over $100 million in capital since 2018. This financial strength enables us to confidently enter into and fulfill long-term agreements spanning 20-30 years. The fact that major financial institutions have chosen to partner with us validates the soundness of our business model and approach.
Our technical expertise spans a variety of installation types, from standard rooftop systems to ground-mounted arrays, solar canopies, and innovative solar walkways. This diverse portfolio demonstrates our ability to design custom solutions for virtually any facility type or location challenge. Our in-house engineering, construction, and operations teams ensure quality control at every stage of your project.
Beyond the core solar installation, we provide valuable additional services including complimentary energy usage analyses, sophisticated performance monitoring, and transparent reporting of environmental benefits. These tools help our customers maximize the value of their solar installation and effectively communicate their sustainability achievements.
We’re particularly proud of our perfect customer satisfaction record. This speaks to our commitment to clear communication, quality work, and responsive service. We’re also dedicated to community development through our “Shine On®” workforce program, which trains and employs new solar installers with an emphasis on disadvantaged and minority business enterprises.
We encourage prospective customers to visit our installations and speak directly with our existing customers about their experience working with Cherry Street Energy. Our decade-long commitment to making renewable energy adoption as “Simple as Sunshine™” has established us as a trusted partner for organizations looking to achieve their sustainability goals while securing predictable energy costs for decades to come.