Take control of your rising electricity costs with a commercial
solar lease or PPA with ESD.
South Australian companies are moving towards solar at a rapid rate, due to significant electricity price increases throughout the state. Regardless of whether you are an SME or a major corporation, the most viable way to install solar is via a Solar Lease or Power purchase agreement. Below we will discuss the benefits & differences between both options.
Commercial Solar Lease.
A commercial solar lease is similar to a rent to own plan. You are essentially ‘buying’ a solar power system over 5 – 10yrs. After the lease is over, the ownership of the system is transferred to you. All the energy produced by the solar power system will off set your current electricity bill. The monthly lease payment will be lower than what you would’ve paid for the electricity had of you not installed solar. Once the system is ‘paid off’, the electricity that the system produces is free for you to use.
Power Purchase Agreement. (PPA)
With a PPA you are not really buying a solar power system. You are buying the electricity that the solar power system produces for a period of generally 7-15yrs. At the end of the agreement, ownership of the system is also transferred to you. The main difference is that you are paying only for the energy produced from the system at a discounted rate to your current bill. Where as with a lease you are paying for the equipment that produces the solar electricity.
Which is better for my business?
There are several variables which could make either option more viable. For example; a business might see value in having a lower discount compared to the grid price for a shorter period, so that the can get ‘free’ electricity sooner. In this case the solar lease may be the better option. Or the alternative may be that a client just wants a known electricity price for as long as possible, then the PPA might be the better option.
Ph: 1300 669 744