Finance Options for Commercial Solar
3 most popular ways to finance Solar
- Cash -Cap ex
- Finance – 3 to 10 year green loans
- PPA – Power Purchase Agreement
Option 1 - $$Cash$$
- Typically 30 – 40% ROI comparative
- Paid off in 3-4years
- Cost rate of solar power, between $0.05 and $0.07c per kwh/Retailer T20 $0.33 per kwh
- Net benefit over life of system (15 years) $120,000-$130,000*
- Depreciation benefits
- Solar Rebates and Feed in tariff advantages
- Benefits- Lowest kwh unit cost, maximum ROI, no loans or finance companies, receive credit for export
- Against – Cap Ex, Money upfront, Maintenance cost
Option 2 – Finance
- Zero Deposit, Zero out of pocket expense
- Start saving before payments are made
- Cost rate of solar power, less than $0.08 - $0.10per kwh/Retailer T20 33 cents per kwh^
- Net benefit over life of system (15 years) $110,000-$120,000*
- Depreciation benefits.
- Positive cashflow 1st year, Savings more than repayments
- Flexible finance terms up to $100,000
- Solar Rebates and Feed in tariff advantages
- Benefits- No cap ex, no cash up front, cash flow positive, receive credit for export
- Against- Loan application, loan repayments, Maintenance costs
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Option 3 – PPA Power Purchase Agreement
- Zero Deposit
- Pay per kwh for solar power instead of Retailer power.
- comparison rate of solar power, between $0.15c - $0.20 per kwh/Retailer T20 $0.33 per kwh
- Positive cashflow
- Feed in tariffs available
- Net benefit over life of system (15 years) $50,000-$60,000**
- 10 – 15 year term
- Benefits – No Cap Ex, No Maintenance cost, No money up front, no loans
- Against – highest kwh unit rate, 2 retailer bills, typically 15 years terms, pay for Solar export