Commercial solar systems are getting more and more popular. Energy prices keep going up and more businesses are choosing solar because it’s cheaper than paying power companies and it’s an investment.
Here is a list of some of the areas where commercial solar systems are getting more popular in QLD:
- Brisbane Solar Commercial – read our guide on solar Brisbane here
- Rockhampton Solar Commercial
- Mackay Solar Commercial
- Toowoomba Solar Commercial
- Regional QLD
There is still a long way to go for commercial solar systems to be as prevalent as residential. But now more than ever, we’re seeing Aussie businesses turn to solar as a way to offset costs.
Paying For Commercial Solar Systems
There are a bunch of different ways to pay for commercial solar systems. Some are more suitable than others depending on cash-flow and other factors. It’s almost always going to be the highest solar ROI to pay cash for your system. But this also depends on how much that cash could be worth to a business if invested in other areas.
Leasing Commercial Solar Systems QLD
Leasing is one of the most common ways to pay for commercial solar systems. In very basic terms, here’s what solar leasing is all about:
- You (the customer) pay a very small amount (or nothing) and apply for a solar leasing agreement.
- The solar leasing company approves the finance
- The solar leasing company owns your system
- You can usually claim tax benefits on 100% of lease repayments
- The lease repayments should ideally be less than what the solar saves you
- At the end of the solar leasing term, you can usually buy the system or opt to extend the lease (e.g. to upgrade your system)
That’s solar leasing in a nutshell but it will obviously depend who the leasing company is as to what terms and conditions you’ll be under.
Traditional Finance For Commercial Solar Systems QLD
Financing a commercial solar system yourself might work best for you. If you can get a great interest rate and buy solar that way then that’s great. This works especially well to boost business cash-flow. Since your finance repayments may be far lower than your solar savings.
Paying Cash For Commercial Solar Systems QLD
Paying cash is often the way to get the best Return On Investment (ROI). But it depends on what the value of that cash is in your business. Some businesses might be able to make 50% on capital investments, in which case you’d be far better off financing your commercial solar system. Commercial solar systems would typically deliver between 8% and 30% as a return on your investment.
Power Purchase Agreements (PPAs) For Commercial Solar Systems QLD
PPAs are just starting to take off in Aus. They have been highly successful overseas for years now. For some reason, Aussie business owners are a little more hesitant with this type of arrangement.
Sungevity are famous for Power Purchase Agreements.
Here’s how a solar Power Purchase Agreement works:
- Your installer pays for the installation of solar on your roof
- You and your installer agree on a discounted rate for the solar power you use
- You agree on other terms & conditions as per the agreement
- You get solar on your roof
This is of course a simplified version of the process. In general though, you might hope to get a fixed price for the solar power you consume, which is less than what you pay now, and fix it for up to 30 years. This could work out great for businesses who would rather not pay for solar but who want a discounted rate on their power use.