Financing options

If you’re worried about increasing electricity prices, and to a great extent want to invest in a solar project for your commercial business, but lacks finances to pay upfront, don’t apprehend we at Target Solar have got your back.

It is misbelief that large solar projects come with high upfront cost. Conversely, investing in commercial solar PV installation creates a positive cash flow with zero upfront cost. We are partnered with the best financial institutions to offer you multiple choices to make best finance decision to get the full control of your electricity bills for your commercial solar systems. We at Target Solar also provides best financing solution to our clients based on their finances.

Commercial solar project financing option

  • Cash
  • Solar power purchase agreement
  • Operation Lease

Paying by cash

This financing option for any commercial project may be attractive as it gives the full ownership of the business with zero interest and no on-going payments. Paying upfront is simple and easy to understand with no third-party interference. Moreover, in commercial solar a tax depreciation of 5% per annum is achieved for 20 years as per ATO. However, investing into a commercial solar project can be difficult to invest large capital in one core business activity against other business priorities.

Solar PPA and operating lease

With Target Solar now you have the choice to make your decision whether you would like to opt for a Power Purchase Agreement or go for Solar Lease. PPA and operating lease can provide a simplified commercial solar business to provide your organisation economical, green and reliable energy.

Benefits of PPA and operating lease

  • Remove the burden of the ownership of the solar system
  • Saving on electricity bills and the bill remains as operational expense
  • Provides generation guarantees
  • Eliminates risk from spikes in electricity prices
  • Potential of expanding system in future

A Power purchase agreements (PPAs) are arrangements in which a business is offered to purchase the electricity generated by a solar panel system in an organisation’s premises. The most important benefit of the PPA is to use/ buy the energy from the installed solar PV system at lower rate without purchasing the whole system. Instead, a PPA provider owns and pay for the installed system. The PPA providers agrees on the fixed price to sell the electricity lower than the grid connected system. The PPA is a non-regulated financing option in the commercial solar industry, thus it is recommended to seek advice to get competitive price.

Benefits and features of PPA are:

  • Monthly energy bills for per unit electricity used
  • Reduces grid connected electricity usage
  • The agreed price of the electricity remains the same over the period of the contract
  • Contract period of 10- 15 years
  • The system management and maintenance is overseen by us
  • A future certainty on the energy costs
  • Ownership of the system after the contract is finished

The operating lease also an attractive financial option to fund for the commercial solar PV system. The operating leased are designed as a fixed monthly contract repayment for consuming electricity generated by the installed solar power system in your premises. Target Solar is partnered with Multipli and other few financial institutions to help businesses help in financing the large commercial renewable energy projects.

Benefits and features of solar lease are:

  • Monthly energy bills for all the energy delivered
  • Reduces dependency on grid connected electricity
  • Provides system generation gurantee
  • Flexible contract period of 10- 15 years
  • The system management and maintenance is overseen by us
  • A future certainty on the energy costs
  • Ownership of the system after the contract is finished

Multipli is a financing service company working towards simplifying payment plans for large businesses. The digital technology adopted by Multipli makes it easier for the customers as their finance process is completely digitised. Multipli is a proven means to remove or drastically reduce the risks associated with securing payments for technology implementation and installation projects. They have programs that boosts sales, retain equity and facilitate cashflow. Multipli supports your business’ rapid growth as well as creates a competitive advantage for the sales team.

The major difference between power purchase agreement and solar operating lease is duration and the pricing model arrangement of the contract. In PPA, the monthly payments are fixed based on the per unit energy consumed by the business. However, in solar lease the monthly repayments are fixed and predetermined, regardless of how much energy is produced by the solar PV system and consumed by your business.

With both PPA and operating solar lease financing options, there is zero capital layout and each of them has their own benefits. Target Solar provides a free financing consultation for commercial solar systems, to provide business with the best possible solution based on number of factors and business circumstances.

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