Commercial solar financing services are called upon when a business is seeking professional assistance with their brand new panel installation.
Although there are some government incentives that offset the size of the investment, commercial clients still have to source an outlet that will deliver a model that works for them in the short, medium and long-term of the enterprise.
Many companies take these operators on face value and once they have been tabled a couple of payment options, they deed which one suits their accounting department and forges ahead.
But how do they know if they are receiving value in the market? What if there are more flexible methods to reduce the risk and better manage the overheads?
This is where help is required and a subject that merits further discussion.
Calculating Tax Benefits
The tax component that arrives with installation will vary from client to client. This is a process that commercial solar financing experts take into account, factoring in the make and model of the brand to the type of business and power usage, bundling together a figure that could be attractive for the organisation. Outright ownership of the product usually returns a higher subsidy as opposed to a lease agreement, but these professionals will be able to advise on rate of returns and help to make a determination.
Negotiating Agreements
Part of the art form that is on show from commercial solar financing services is the capacity to negotiate agreements. The Power Purchase Agreement or PPA for short is a contract that sees a payment provided on a per kilowatt/hour basis, locking in the energy consumption rate for a long-term period as the hardware remains under the ownership of a third party. If this option is deemed unsuitable, there can be a lease signed that minimises the risk on behalf of the client. The good news for commercial investors is that these third party advocates have some middle ground to maneuver and finance the project within their budgetary constraints.
Avoiding The Low Quality Providers
For clients who embrace commercial solar financing services, they will be able to gain a rounded perspective of the industry at large. This will prevent them from falling under the spell of cheap outlets who attract the eyes of small to medium enterprises (SMEs) by lowering the market value and moving their panels at a higher volume. What these businesses will often do to lower their overheads is utilise a lower quality of solar panel and overlook the need to insure the goods courtesy of repair and maintenance provisions. Some of these operators skirt the laws and could be considered black market proprietors, so engaging professional assistance in this setting is imperative to identify them early.
Picking The Right Payment Model
When broken down to their core components, commercial solar financing services will issue three distinctive payment method models. The first involves the PPA, purchasing the electricity and wattage from the financier and avoiding a fluctuating change to energy prices from the domestic market. The next idea that will be tabled is paying outright via cash. This choice empowers businesses because they own the panels, but they are then charged with ensuring that the product is performing to a high standard. The final choice is seen through a lease, minimising the long-term risk but locking in a series of transactions despite performance levels.
Independent Arbiter
Whilst solar providers clearly have a stake in wanting to maximise profits and expand their business to local constituents and new markets, commercial solar financing services are independent arbiters in the process. This removes any subjectivity and conflicts of interest to ensure that the customer is receiving an expansive and wide ranging view of the industry offerings.