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Commercial solar has become an increasingly popular option for businesses in Australia looking to save money on energy bills while also reducing their carbon footprint. With the availability of different purchasing options, it can be overwhelming to decide which option is the best fit for your business. In this article, we'll discuss the different types of purchasing options available, and how to determine which one is the right decision for your business.
The three main purchasing options for commercial solar are Capex, lease or finance, and PPA (Power Purchase Agreements). This blog post can help you navigate the complexities of each purchasing option, whether you're looking for an immediate investment in your solar system, want to access the benefits of solar without upfront costs, or prefer a unique option where a third-party provider sells the energy generated back to you at a fixed rate.
1. Capex
Capex refers to the capital expenditure where you purchase the solar system outright. This option provides the greatest financial benefits over the long term, as you own the solar system and are eligible for all government incentives and rebates. However, it requires a large upfront investment and may not be suitable for all businesses.
2. Lease or finance
Lease and finance options allow businesses to access the benefits of solar without upfront costs. With a lease, a third party owns the solar system and you pay a monthly fee to use it. With finance, you borrow money to purchase the solar system and repay the loan over time. Both of these options can provide significant cost savings compared to traditional grid electricity, but it's important to carefully review the terms of the contract to ensure it aligns with your business goals.
3. PPA (Power Purchasing Agreement)
PPA is a unique option where a third-party provider installs the solar system and sells the energy generated back to you at a fixed rate. This option can provide immediate savings with no upfront costs, and the third-party provider takes care of maintenance and upkeep. However, the fixed rate may be higher than the cost of traditional grid electricity over the long term.
At Smart Energy Answers (SEA), we are the leaders in the commercial solar space, providing innovative and sustainable solutions for businesses across Australia. Our dedicated commercial division, SEA Commercial, is committed to providing high-quality commercial solar systems that are tailored to your business needs. We have a vision for the future of commercial solar and how it can benefit companies, businesses, and Australia as a whole.
One of our notable clients is CHOICE Magazine Australia, which had a 110 kW solar system installed by us. They were able to reduce their energy costs by approximately $28,000 per year, and their solar system will pay for itself in just over four years. This is a prime example of the benefits of commercial solar and how it can provide significant cost savings for businesses.
In conclusion, choosing the right purchasing option for commercial solar requires careful consideration of your business goals, financial situation, and long-term sustainability plans. At SEA Commercial, we are committed to providing innovative and sustainable solutions that align with your business needs. Contact us today to learn more about how we can help your business make the switch to solar.
