Commercial solar financing agreements come in a range of shapes and sizes. Businesses will see the value in transition to a clean and sustainable power source. The challenge is being able to finance these projects. We will outline some essential commercial tips for owners who want a deal that is tailor made for their unique requirements.
Reflect on Commercial Budget Parameters
Before participants explore the possibilities on the show with commercial solar financing agreements, it is important to look at the budgeting for the business. There will be potential to spend a large lump sum up front or to extend the purchase across years with a loan. Whatever the course of action happens to be, it is beneficial to assess what is viable with infrastructure developments and ongoing utility costs for the brand. As soon as clients realise this is the bracket they are working with, the decision-making process improves.
Assess Solar Design Demands
From the on-grid to the off-grid and hybrid models, there will be unique formats of technology that help to dictate what is possible with commercial solar financing agreements. The comparisons between monocrystalline and polycrystalline will be worth discussing with installers and industry specialists, setting out a framework for participants as they negotiate their value. Businesses will only want to pay for the technology and solar coverage they need, so working with suppliers in the market will make this picture clear for all to see.
Decide on Infrastructure Ownership Status
Ultimately commercial solar financing agreements break down into two key domains: owning the product outright or having it made available on a loan/lease basis. Paying cash and working with an energy-efficiency loan will ensure that the model is delivered outright to the business but as we know, being liquid enough to finance that type of purchase is not always possible. This is where ownership status can be put to one side in order to access the utility, taking advantage of a power purchase agreement (PPA) or a renting lease.
Look at Depreciation of Product
When it comes to the subject of commercial solar financing agreements, it is important to reflect on the depreciation of the asset over time. The most reliable brands in the market will continue to deliver returns for members, but there will be cheaper units that quickly depreciate once they have been installed. If there is a willingness to on-sell the property and the technology, it will be worthwhile looking at the financial packages that are in place and how the value of the brand will depreciate over its lifespan.
Explore Payback Schemes & Dividends
While the initial price tags can seem a bit overwhelming for corners of the small business market, there will be payback schemes and dividends in play that help to reduce the burden in the long term. Providers of commercial solar financing agreements will be able to outline these provisions in more detail upon request. So long as owners are eligible for these programs, that will allow the operators to reduce their cost and ensure they are leveraging maximum value for the technology.
Survey Multiple Suppliers
Agreeing to these solar packages on a financial basis has to be made after multiple suppliers are engaged. This is the only approach that will be in the best interests of the client. Having looked at what is possible through domestic and international brands, companies will proceed in the knowledge that they have found a deal that is geared for their energy sustainability.
Commercial solar financing agreements might appear intricate and tough to manage from the outset, but there are options that will be geared to businesses of any profile. The key is to follow the advice of experts and take the time to pick an agreement that works for today and 10 years from now.