Solar Panel Funding Options
Like many assets there are a range of options for funding a Commercial Solar Panel installation. See below for a brief summary of each and please contact us to learn more or for a quote:
PPA - Power Purchase Agreement - 5-9p/kWh
A PPA is where a third party fund will pay for the installation of the Solar Panels on a property. In return they will take all of the FITs and charge a rate for the use of the electricity produced by the Solar Panels. Rates as low as 5p/kWh can be achieved.
The rates under the PPA will be guaranteed for 20 years and index linked. This allows a business to insure itself against future energy price inflation that has averaged 10% per annum over the last years.
The Solar Panels are owned and operated by a third party, meaning all maintenance and insurance is their responsibility.
Unique Solar Operating Lease Package
For a Solar Operating Lease information pack "Click Here"
The structure of the Solar Operating Lease Package is simple, a funder will pay for the installation and maintenance of the Solar Array. In return the fund will lease the use of the panels to the benefiting business. This spreads the installation cost and maintenance over 25 years through pre agreed fixed rental payments allowing the leaser to instantly benefit from the installation. Additionally the leaser is not locked in for 25 yrs, exit is possible at any stage.
All benefits of the Solar Panels go to the leaser including the FITs and the Free Electricity. The rental payments are structured such that the leaser sees a margin from year one.
The Solar Operating Lease Package covers all maintenance and replacements meaning no need to worry about any product failure or running costs.
Tenants renting properties can now proceed, recent legislation changes now allow a solar array to move with the tenant.
Self Financed Solar Panels through Outright Purchase
Often the preferred route for many is to invest in the businesses future with their own capital, with paybacks of 5 years possible.
Eco Generation can offer highly competitive turnkey packages.
Further to this, a critical element for maximising return on investment is to match the Solar Panel capacity to the energy demands of the facility in question. Export rates (4.85p/kWh) are nominal when compared with electricity savings (approximately 10p/kWh), meaning it is critical that a Solar Array is sized and situated accordingly.
Eco Generation clients have access to higher export rates than the standard FITs (4.85p/kWh) with rates of up to 5.5p/kWh possible.
Contact us today to fully understand your Solar Panel potential.