Among the reasons why businesses are hesitant to switch to solar power systems and install energy-saving devices might be attributable to the large upfront cost of some companies. However, the good news is that some solar power companies, especially EU Solar, now bring loan and leasing options to their clientele.
EU Solar has partnered with leading industry experts to provide consumers with various financing plans to make switching to solar energy-saving systems easier and affordable. You don’t have to incur the enormous upfront costs and you can enjoy lower electricity bills in no time.
Most often than not, the financing arrangement is cash flow positive, meaning that one’s finance payments are less than the expected energy bill savings.
Power Purchase Agreement (PPA)
EU Solar offers a Power Purchase Agreement (PPA) to its customers. This arrangement requires no investment from the customer.
EU Solar and its partners own the system outright and thus are responsible for all ongoing maintenance and service. The customer only buys the electricity generated by the photovoltaic system at an agreed discount on their current electricity bills. Hence, the client benefits from lower electricity fees without capital outlay.
For a more detailed overview, a solar PPA is a financial agreement wherein a developer is responsible for permitting, installing, designing, and financing a solar energy system on a client’s property at a lesser cost to no cost upon installation.
The said developer sells solar power to the customer at a fixed rate that is often lower than the local utility’s retail price. This lower electricity cost offsets the customer’s purchase of electricity from the grid. At the same time, the developer gets the income from these electricity sales and tax incentives and credits from the system.
PPAs typically last from 10 to 25 years and the developer remains responsible for the maintenance and operation of the system for the entire duration of the agreement. Upon the end of the PPA contract term, the client can extend the PPA and have the developer remove the system or buy the solar energy system from the developer.
What are the Benefits of Having a Commercial Solar System Installed?
- Excludes upfront costs
- The application process is easy
- Flexible payment options
- Significant savings on energy bills
- Repayments can be fully tax-deductible