Solar energy has become popular for companies that want to implement power purchase agreements that help them save money through renewable, clean, and safe solar energy.
Solar energy protects your profits by reducing your monthly electricity bill. Also, our government offers businesses cash incentives in the form of federal tax credits for investment. You can look at the laws for PPA at www.upstreamenergy.com.au/ppa.
Option 1 for solar finance – capital leasing
This type of loan usually has a term of five to ten years and is similar to a mortgage. Your company accepts all types of tax breaks, there are no deductions, and you can buy a loan at the end of the rental period.
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Option 2 for solar finance – city rent
City rentals are best suited for governments or non-profit organizations who want to use solar energy. These leases usually have ten to twenty-five years and offer the lowest interest rate of all available options. Additionally, you can purchase your solar project at the end of the rental period with other options.
option 3 – energy purchase contracts
PPA offers a maximum loan period of twenty to twenty-five years. In this agreement, the finance company sells energy from your solar system at an agreed price. Even if you only pay for the energy produced, the tax credit is passed on to you as a reduced payment.
This agreement includes support for your system. You can continue to buy your fair value system at the end of the rental period.
Regardless of the type of funding you choose, most companies agree that solar energy projects can offer many financial and environmental benefits.