Could solar panel finance options help my business perform better?
Australia’s and the world’s energy landscapes are evolving. As the price of power is continuing to rise, smarter businesses are looking at alternative strategies to lower their energy usage and cost. A great solution is in the investment of renewable and green energy sources that can generate significant savings and help your business to cut energy usage costs. These energy assets usually involve a large upfront of capital investment with very little operating costs. Therefore, the entry into renewable energy can be difficult, but the return on investment may be very high due to the low maintenance costs involved.
Why should I finance energy efficient lighting (LED) or a solar system installation?
Financing your energy asset(s) for your business may be a good solution considering it removes the need to make a large upfront investment. For example; A solar system will require a large initial investment to purchase all the panels, inverters, racking, support equipment and installation. Paying regular monthly instalments can help you to keep on top of your business cash outflow.
What Energy Assets can I finance?
Solar Systems and Energy Efficient Lighting (LED) are our primary focus. Other energy assets that will bring value and save your business money will be considered on a case by case basis.
What if I don’t own the building for my place of business?
Finance applications from tenants that wish to purchase and install energy products that will give them an energy saving will be considered on a case by case basis. Given that the tenants are responsible for paying their utility/energy bills, there may be an incentive for you to offset your electricity costs.
How soon can I get my energy equipment installed?
We offer Chattel Mortgage that allows you to own your solar system immediately. If your business is registered for GST, you may also be entitled to an input tax credit, resulting from your acquisition of the energy asset. You will first need to discuss this with an Accountant for any tax advice or assistance.
Also for eligible solar systems, a Chattel Mortgage entitles you to generate Small-scale Technology Certificates (STCs) that are often used to offset part of the price on your system. After the last payment on your Chattel Mortgage is completed, the mortgage is discharged giving you, the owner a clear title on the asset.
What finance terms are available?
Solar assets can be considered up to a 60 month term and a small balloon of maximum 20% may be considered depending of the strength of your application. All lighting (LED) assets are capped at a maximum of 36 month term with no balloon option. Other energy assets will be assessed on a case by case basis.
What do I need to apply for finance?
To assess an energy asset application we require the following financial information:
• last two years financial statements
• schedule of financial commitments
• interim/management accounts (if available)
• director’s Assets and Liabilities statements.
For settlement we will also require confirmation of any energy saving credits being assigned. Settlement can only take place after the completion of the asset installation. Any loan amount over $10,000 for qualifying energy assets will be considered.