In light of the current energy crisis and worldwide economic recession, many entrepreneurs have begun to reassess the way they do business in order to safeguard against future financial instability. Consequently, leading businesses are introducing renewable energy sources such as solar panels into their commercial working spaces, warehouses, universities, school and areas of operation. Nevertheless, not all businesses are able to bear the initial costs of this ecological transition. Leading them to look for commercial solar finance alternatives.
Thankfully, the government has supplied financial schemes to support businesses in this situation, as well as numerous commercial solar financing options for small to medium businesses to adopt renewable energy sources. Â
Let’s take a look at some of the most feasible commercial solar finance for business funding options available for grabs as we speak.
Solar loans – Financing Option of Solar for Business
Businesses can borrow money to install solar power systems thanks to a type of credit called a solar loan. Solar loans are widely available from banks and other third-party financial organizations, and they typically have cheaper interest rates than other company loan alternatives. To help businesses manage their cash flow, some solar financing solutions may also feature extended repayment intervals.Â
Cyanergy offers lucrative deals to businesses to go solar. In collaboration with specialised PPA providers, we offer electricity and storage facilities to businesses which comes at a significantly lower per unit rate than your average grid-connected source. The entire system will be insured and cared for by the PPA providers; all you have to do is enjoy electricity at a lower cost, which comes from a greener source, leaving a positive impression on your business by your customers. Â
To know more about how you can take advantage of solar without the commitment, contact us today. Â
Energy Efficient Upgrades- Financing Options
Energy efficiency loans are another option for financing commercial solar and related upgrades in Australia. These loans are designed to help businesses invest in energy-efficient technologies, including solar power systems. Many banks and other financial institutions offer energy efficiency loans, and they can be used to finance up to 100% of the cost of a solar power system and energy efficiency upgrades like LEDs, heat pumps, refrigeration display cabinets, etc. Â
With Cyanergy you can upgrade your facility with energy-efficient equipment’s by opting for any of the two ways mentioned below-Â Â
- Rental Agreement Â
- Chattel Mortgage Â
In the case of rental agreements, you get to rent the equipment needed with a $0 upfront cost. Your payment plan is settled with the Smart Ease payment plan. With this service, you will be paying a monthly installment by the end or middle of which you have the option to completely buy out the system. Businesses needing less than 50kW of upgrades are eligible for this. Â
And in the case of a chattel mortgage, you as a business will own the system with a $0 upfront cost once again and pay in installments. Â
To know more in detail about both the schemes – click me. Â
Government incentives
The Australian government provides a number of incentives to entice companies to invest in solar power systems and other renewable energy technology. The Small-scale Renewable Energy Scheme (SRES), which offers SMEs a discount on the initial cost of a solar power system, is the most significant incentive provided by the government to date.Â
Also, loaning options in certain specific states up to a set lump sum amount are available. For example, the Victorian government offers up to $3500 of interest-free loan to businesses that meet specific criteria. Â
For larger business Large-scale Renewable Energy Target (LRET) program is available, incentivizing businesses that require over 100kW of power. Â
Power Purchase Agreements (PPAs)
Lease Financing
Another option for companies looking to finance a commercial solar power system is lease financing. A third-party investor purchases and installs the solar power system and then leases it to the company in a lease finance agreement. The company pays the investor monthly leasing payments, and at the conclusion of the lease term, they have the option to either buy the equipment entirely or return it.Â
Solar leasing may entail collaboration with a reliable financing partner and may be enabled by PV installers or manufacturers. Upon application, the bankability of the solar PV installation as well as the financial viability of your company, will be evaluated. Â
Ask your retailer or manufacturer what financing alternatives they provide when determining which one best meets your needs. Â
Financing a commercial solar power system can be a significant investment for businesses. However, with the various financing options available, businesses can choose the one that best suits their needs and cash flow. Â
Whether you’re looking to save money on your energy bills or reduce your carbon footprint, solar power can be an excellent investment for your business. So don’t let financing be a barrier to your sustainability goals – explore the options available and take the first step towards a brighter, more sustainable future for your business and the planet!Â
