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

FAQ

What is a Solar PPA?

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:
  • 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
  • Monthly energy bills for per unit electricity used
  • Less dependency on grid connected electricity usage
  • The agreed prices of the electricity remain the same over the period of the contract

What is Operating Lease?

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 guarantee
  • Flexible contract period
  • The system management and maintenance is done by us
  • A better control on future energy costs
  • Ownership of the system after the contract is finished
With easy finance plans and options, Target Solar assist you in choosing one of our finance partners for your solution or you may choose to use your own bank. With quick credit approvals after background check, the process is expedited towards finalizing your solar power system.

Target Solar prepares a detailed proposal showing the system design, performance estimate, ROI and positive cash-flow before proceeding any further.

What is the difference between the PPA and operating lease?

The major difference between power purchase agreement and solar operating lease is the duration of the contract and how it is structured financially. In PPA, the monthly payments are based on the per unit energy consumed by the business. However, in solar lease the monthly repayments are fixed, irrespective of how much energy is produced by the solar PV system and consumed by your business. With PPA you don’t own or maintain the system and in operating solar lease you lease to own and maintain the system, 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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