Why install a commercial solar system?
Whether your goal is to reduce your business' operating expenses or meet sustainability targets, investing in commercial solar is a very sound investment. A solar system can slash your organisation's energy costs by up to 50%, and if you opt to purchase the system outright, you can expect an ROI of 20% - with the system typically paying for itself in under 5 years. Power Purchase Agreements (PPAs) can also be structured in a way that offers cashflow positive outcomes from day one, making your CFO very happy indeed.
Commercial solar will first and foremost benefit your bottom line, whilst brightening your brand in the minds of your consumers, and shareholders.
When considering your solar energy investment, you have three primary finance options: Capital Purchase, Power Purchase Agreement (PPA), and Lease/Chattel Mortgage. Each of these options presents varying upfront costs, maintenance choices, and potential returns on investment. We will walk you through the benefits of each option below:
Capital Purchase
Companies with sufficient capital can start reaping returns on their commercial solar investment immediately after installation. Opting to purchase your solar system outright provides you with a valuable asset over which you maintain full control.
- Purchase your system outright (CapEx)
- The quickest way to get immediate returns
- Ideal for companies with access to cheap capital
- Potential to boost your investment returns via the Instant Asset Write Off Scheme
Power Purchase Agreement (PPA)
A Power Purchase Agreement (PPA) entails a contractual commitment to buy solar energy at a predetermined rate, gaining traction as a favoured procurement approach for various reasons. PPAs don't require upfront investment and also eliminate the risks of owning and managing the solar system yourself.
- No capital outlay
- Cash flow positive from day one
- Secure your energy costs with a fixed energy rate, ensuring price stability and easy forecasting
- Ownership and maintenance are handled by the commercial operator, minimising your operational risks
- System performance is financially guaranteed
Lease/Chattel Mortgage
Many businesses lack the funds to CapEX their commercial solar system. That's why commercial solar loans and leasing are popular options.
- No capital outlay
- You can spread the payments over 5–10 years.
- Your energy savings will typically cover your lease payments, making the investment cashflow positive from day one.
- Ownership and maintenance are handled by your business.
- Potential to boost your investment returns via the Instant Asset Write Off Scheme
Compare quotes below and one of our commercial solar specialists will tailor an obligation free solar proposal, and solar finance options to suit your business' unique energy requirements.