Asset Finance can help make your solar PV system more affordable
More and more companies are choosing to pay for their commercial solar panels using Asset Finance. This is where a finance company pays for the full cost of the system, then you pay them a set amount each month until the solar PV panels are paid off. We tend to find traditional asset finance options spread over 60 – 120 months.
9 times out of 10 we can find a way to make sure the system is cash positive from year 1. We do this by fluctuating the term to ensure the loan repayments are less than what you save per annum from your electricity bill. When this is put down on paper, the system pays its way and almost ticks the “No brainer” box.
The upfront cost of installing a commercial solar PV system can be a significant hurdle for many businesses. However, asset finance offers a compelling solution, making the transition to renewable energy more affordable and accessible. This financial mechanism allows companies to acquire the benefits of solar power without the need for a large initial capital outlay.
How Asset Finance Works for Solar PV
With asset finance, a specialized finance company covers the full cost of the solar PV system – from the panels themselves to the inverters, mounting hardware, and installation services. In return, your business makes regular, fixed monthly payments to the finance company over an agreed-upon term. Once all payments are completed, ownership of the solar PV system typically transfers to your company.
This approach transforms a substantial capital expenditure into predictable operational expenses, which can be easier for businesses to manage. Traditional asset finance options for solar PV systems are commonly structured over periods ranging from 60 to 120 months, providing flexibility to align with your business’s financial planning. Achieving Cash-Positive Outcomes from Year One
A key advantage of utilizing asset finance for solar PV is the strong potential to achieve a cash-positive position from the very first year of operation. This means that the savings generated from your reduced electricity bills can often exceed your monthly finance repayments.
Our expertise lies in structuring these finance agreements strategically. We carefully analyze your estimated energy consumption, the projected output of the solar system, and prevailing electricity rates. By intelligently fluctuating the finance term, we aim to ensure that your monthly loan repayments are consistently less than the annual savings you realize from your diminished electricity expenses.
When presented on paper, this financial model clearly demonstrates that the solar PV system effectively “pays its own way.” This compelling financial argument makes the decision to invest in solar energy an almost undeniable “no-brainer” for many forward-thinking businesses. It allows companies to immediately benefit from lower energy costs, improve their environmental footprint, and enhance their brand image, all while maintaining a healthy cash flow.