Unlocking the Benefits of Solar Power: Financing Solutions for Your Business
Blog | January 16th, 2023Investing in a commercial solar power system can offer your business many benefits, including lower electricity costs, reduced business risk and improved sustainability. However, the upfront cost can be a concern for some. That’s why Solar Energy Enterprises is committed to making solar accessible to all businesses by offering a variety of finance solutions, including:
CapEx
For businesses with available capital who are looking to maximise their savings, a traditional Capital Expenditure is often the ideal solution. Commercial solar systems typically have a 3 – 6 year return on investment and owning the system outright allows you to immediately benefit from all the free solar energy your system generates, resulting in the most significant savings over the lifetime of the asset.
Although a cash purchase requires the largest upfront investment, there are a number of government rebates and incentives available (such as STCs, LGCs and tax incentives) to assist with reducing the out of pocket price of solar.
Solar Power Purchase Agreements (PPAs)
Solar PPAs allow businesses to access the benefits of solar power without any upfront capital. With a PPA, we install the system at no cost to you and you simply purchase the solar energy generated by the system at a fixed rate which is lower than your current daytime energy rate, resulting in immediate savings.
As no upfront capital or fixed monthly repayments are required and your solar energy PPA rate is less than your normal daytime electricity rate, this finance solution is cashflow positive from day one.
Solar Energy Enterprises own, maintain, and operate the solar system for you for the length of the PPA term, so you don’t have to worry about the hassle of any maintenance or potential faults.
In most cases, ownership of the solar system can be transferred to your business at the end of the term, at which point you would then benefit from the solar energy generated for free.
You can find out more about Solar PPAs here.
Solar Leasing
Solar Energy Enterprises offer a month-to-month payment option, allowing solar to be installed without any upfront costs. Our in-house finance product is rent-to-own and allows 100% of the repayments to be tax deductible, and the savings generated by the system are often more than the yearly repayment, making it cash flow positive from year one.
With a Solar Energy Enterprise Solar Lease we own the solar system and handle all operating and maintenance for the duration of the lease, so you don’t need to worry about the inconvenience of any potential issues arising during this time. At the end of the lease term, ownership of the system is transferred to you.
Finance
Purchasing a commercial solar system on finance allows you to conserve working capital by paying for the system over time rather than paying the full cost upfront, and means you can start saving significantly on your energy costs as soon as the system is installed.
We accept approved finance purchases from most financial institutions or can connect you with our trusted finance partners to help find a solution that’s right for your business.
Thanks to the Clean Energy Finance Corporation’s investment into helping Australia’s major banks offer ‘energy-efficiency loans’, financing a commercial solar system may allow you to secure up to a 0.70% discount on headline rates from participating lending institutions. However, when it comes to purchasing solar through finance, your return on investment will vary based on the length of your loan term and interest rate.
The below comparison table has been provided to give you a high-level overview of the differences between the commercial solar finance options.
Because all businesses are different, the best way to finance your commercial system will depend entirely on your circumstances, budget, and future plans. As a result, this information is general in nature and is not intended to constitute financial advice.
At Solar Energy Enterprises, we use the highest quality components and latest technology, and guarantee a lower upfront cost than any competitor, so regardless of your chosen finance solution, you can rest assured it’s always a smart decision to go solar with SEE.
If you’re interested in learning more about your solar financing options, contact us today: https://www.solarenergyenterprises.com.au/contact-us/
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