The savings from solar energy are astonishing! The value solar energy adds to your business is substantial. With such short payback periods too, coupling your solar installation with solar finance can be a great cash-flow-positive option to help your business reap the benefits of solar energy without having to outlay much, and those repayments covered by the savings from solar.
A power purchase agreement (PPA) is a contract between the "power generator" (the seller) and the "solar energy purchaser" (the buyer). The seller installs, owns, and operates the solar system and/or battery system on the customer’s property. The customer purchases the system's renewable electricity over an agreed period. A PPA allows businesses to purchase energy at a low solar energy rate with no upfront cost. PPA's give long-term price visibility and help Australian business to achieve their sustainability targets effectively.
A chattel mortgage involves a financier to provide you the funds to purchase the solar system that will be "primarily used for business purpose's". A chattel mortgage has a similar structure to a traditional home loan or mortgage. Giving you or your business ownership of your solar system right away, the loan is then paid off from the income the system generates in your business. The loan term and repayments can be structed to suit the company’s cash flow.
Leasing your solar system allows your business to receive the financial benefits of renewable energy without an upfront cost. A solar provider funds the financing and installs the system. You or your business then lease's the system at a fixed monthly amount whilst benefiting from the electricity it generates. Savings from using solar energy instead of energy from the grid often cover your lease repayments and put further savings in your pocket still. Over a long time period this can be a great way to utilise the long term cash flow benefits of solar for your business without the upfront cost associated with the install of your solar system.
Environmental Upgrade Finance/Agreements (EUF/EUA) are council-based financial products that give owners of old commercial buildings access to finance for upgrading their properties to consume less energy. Not all states in Australia will offer EUAs and the arrangements may vary from one state to the other. Visit the government website's for a list of participating councils. Under these loans, lenders (financial institutions) provide finance to the building owners for the upgrade and the building owners repay the loan through a local council charge on the land. Again as per most financial products, the savings from switching to solar energy often cover the repayments with further savings in your pocket still beyond that.