Solar leasing is a form of financing that allows you to enjoy some of the benefits of solar power without paying the upfront cost of a system. Solar leasing is typically suited to commercial, industrial & residential solar systems. It is a type of Third-Party Ownership (TPO) financing model. The system is not owned by the business owner / homeowner but instead leased out by the company who installed it.
By going for a lease option of solar system, you are getting all the benefits of having a solar system without the upfront cost of purchasing and installing your solar panels.
The customer will be able to choose between a number of financing options that best suits their unique situation. Solar leases can be structured so customers pay no up-front costs, some of the system’s cost, or purchase the system before the end of the lease term. In all of these options, you pay a fixed monthly rate in exchange for the right to use the system.
Power Purchase Agreements are an alternative to traditional finance models. Rather than owning, maintaining and operating a solar system, a business only purchases the power it generates. In its simplest form, a PPA is a contract to purchase energy.
The PPA defines all of the commercial terms for the sale of electricity between a business and Smart. This includes when the project will begin commercial operation, schedule for delivery of electricity, payment terms and buyout schedule. PPA terms are transparent and easy to understand.
Solar PPAs have become the procurement method of choice for tech companies i.e. Google, Facebook, Amazon, Apple who are committed to strict environmental targets but don’t have enough physical space to generate their own renewable energy.
A PPA provides all the environmental benefits of solar energy, no operational risk involved in maintaining a system and locked in energy pricing.
Most businesses consume the majority of their energy during the day making them the perfect candidate for solar. Utilising the unused space on your roof will bring the following benefits: