Don’t reduce your electricity bills… stop paying them altogether!

words by Finlease

A relationship with your energy provider is one you don’t want anyway, right? The concept of buying electricity is a cost saving method and is snowballing into something BIG.

Gone are the days when solar was regarded a feel-good product that people installed as a statement that they were helping prevent global warming and reducing their carbon footprint. Today, the decision to install a commercial solar system for your business is considered a smart investment and is based purely on economic reasoning, without taking into account the positive impact it has on the environment or global warming. Anyone in the solar industry will agree – the demand for solar in the commercial market has suddenly experienced exponential growth.

More recently, due to the introduction of the carbon tax, electricity bills have risen quite substantially and the uncertainty of where it’s headed in the future is unsettling.

If you take into consideration the tax benefits, i.e. depreciate the solar panels over its effective life, claim the interest charges at tax time, and claim the GST on your next BAS, the cost of electricity and the cost to finance solar can reach parity, or it can be positively geared giving you energy cost savings straight away.

Why Finance Solar?

  • No upfront cost (“upfront cost” has been identified as a major barrier to the greater uptake of solar systems for decades).
  • Cost of energy is locked providing you with better cash flow management and assists with budgeting
  • Once the solar system pays for itself over the lease period, it is then 100% profitable for the owner. The concept is really simple.
  • Leasing solar is commonly used as a cost minimisation strategy. You can start producing your own power, putting competitors at a complete disadvantage with lower running costs
  • Increases value of property

The below tables compares the significant difference between paying for electricity through to the grid, versus generating your own electricity through solar energy and funding the solar panels over a 5 year period.

 

Disclaimer:  Current Power Bill* includes energy charges (averaged out for peak, shoulder, off-peak) & average network charges (including carbon charge) of a sample SME. This is a modest representation of an average SME.

Monthly payments above are based on a loan (Chattel Mortgage) value of $51,849.60 being for a 40kW solar system over 60 months.

The rise in electricity is calculated at 10% each year in the next 3 years, then 3% for every year thereafter. This is a modest representation of today’s electricity prices.

Businesses who install a solar system may still potentially use a small amount of electricity from the grid.

Finance available to approved applicants. Monthly payments may vary dependent of movement in market rates.

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