Solar panels usually make a bold but legitimate claim of decreasing your company’s energy bills by a substantial margin. Many businesses notice that power bills can get too costly and are hopping on the solar power bandwagon.
Why is solar energy important for your business?
Excellent return on investment with solar energy
When you think of installing a solar system for your commercial buildings, consider it an investment and not an expense. The return on investment you get from a solar system often exceeds most other assets in terms of the money your business saves over the years.
Reduce your operating costs with Solar Panels Sydney
Once your commercial solar panels are paid off, they will reduce the operating expenses of your business, which will pour down through your business’s balance sheet.
Improve your cash flow with solar
Once you install your commercial solar panels and get them hooked up to your energy grid, you start to save money with lower energy bills every month. When less money is required to power your company, you’ll have more cash on hand once your solar panels are paid off.
Improve your brand image with green energy
This is one of the most incredible things about commercial solar panels, and you can advertise your commitment to clean and green energy to your customers. This helps to send a positive message about your dedication to sustainability and the environment.
Many credible solar companies provide attractive financing options. So, now there is no need to pay high prices – and you may, as an alternative, get your solar system from reputed solar companies.
If you’re curious to know where to begin and go about the process, learn here. We will cover an end-to-end side of solar financing within Australia.
How does solar financing work?
The different financing choices mentioned below each have benefits and drawbacks. Whichever method you go, switching to solar is one of only a few investments that begin placing money back into your small business’s bottom line from the second it is turned on.
Cash and Loans:
Whenever possible and appropriate for the owner, cash is usually one of the best financing choices for companies seeking to reap the advantages of government solar incentives and accelerated depreciation.
Although there aren’t many disadvantages to a cash purchase, the most important con could be access to capital. Not every company has the required cash to make a complete cash purchase; however, it’s potential to combine cash with a loan in order to maximize the ROI on your industrial solar investment.
Low-interest loans or lines of credit score with a current banking relationship usually provide the quickest and most profitable return outside of an all-cash buy. A qualified solar company in Australia will assist you to decide what financing combination will be most ideal for your company’s specific situation.
Leasing for Non-Profits:
A lease usually gives a better month-to-month cost and doesn’t translate into quick possession. At the end of the lease time period, you usually have the choice to negotiate a buyout. Buying out a lease has lower fees typically than buying out a PPA, which is another added benefit to leasing should you select this business solar financing route. There are a number of lease programs that can be accessible to for-profit companies with a tax liability.
The greatest con to leasing a commercial solar energy system is that there isn’t any direct ability to benefit from tax and depreciation incentives. These solar incentives go a long way in helping reduce the price of industrial solar energy systems and pace up the ROI on this type of investment.
Utilities and councils have long utilized power Purchase Agreements to finance the purchase generating services. AYKA Solar provides PPA programs completely for non-profits, municipalities and schools. PPAs are a standard approach to finance solar installations at business and institutional facilities in certain states. With a PPA, you pay for only the power consumed at a much lower rate than what utilities provide. Similar to leasing, PPAs additionally lack a direct potential to reap the benefits of tax and depreciation incentives.
If you have been serious about adding solar to your business operation or wish to find out how solar might help your corporation and its energy targets, we invite you to schedule a session with a member of our solar experts’ team.