two men installing solar panels

Businesses in the market for a brand new solar system will be able to leverage a number of benefits and opportunities from the technology.

Thankfully gas and electric models are being phased out in favour of a more powerful, reliable, durable and eco-friendly piece of innovation that has well and truly become mainstream.

Yet there will be various solar panel financing options that will be presented for clients who are making the transition, giving each recipient a choice to make.

Here we will take stock of what those choices look like, offering more context to a project that can give enterprises a sustainable long-term energy future.

PPA Agreement

A PPA (power purchase agreement) is one of the more popular solar panel financing options that exist on the market. This choice will end up locking in the energy consumption rate for anywhere between two to three decades, seeing the client pay for the energy on a per kilowatt/hour basis. Fortunately there is no capital cost necessary but the items will remain under the ownership of a third party and not the customer. There are positives and negatives about this particular scheme, working well for some organisations and restricting the flexibility of others.

Cash Payment

Should cash flow be healthy and the books are comfortably in the black, then cash could be seen as the ideal solar panel financing options for the business. Liquidity will have to be carefully considered by the accounting department but if there are the funds available to make the project happen, then it will offer some incentives that cannot be sourced through a PPA. Those customers that opt for the lump sum cash payment end up owning the panels outright, avoiding any inclusion from third parties. There are no strings attached and once the items are installed, the hardware is the property of the company for good. This choice can also help to expedite the installation phase as the provider has the capital upfront, but there can be additional maintenance fees that push the budget.


Lease agreements are fairly commonplace when the lump sum cash transaction would be too detrimental to the short-term budget of the organisation. Solar panel financing options will incorporate this feature for those parties who deal directly with the company and sign a lease agreement from anywhere between 12-24 months to 5 years plus. There are rolling lease agreements that can be renewed annually, and whilst that prevent ownership and lock in a flat fee for the client, they do ensure that maintenance is looked after on their behalf.

Inquiring About Government Tax Incentives

The good news about examining solar panel financing options is that the Australian Government is likely to step in and offer some help for new clients. The Solar Credits Program has been rolled out nationwide where smaller commercial enterprises are able to access a subsidy for this transition without any means testing required. It would be a dereliction of duty not to make inquiries about this scheme on behalf of the organisation because it could offset some of the initial financial pain that arrives with the installation.

Engaging Expert Assistance

If all of these choices appear overbearing or there is more information required, the best option is to embrace professional services that give assistance with solar panel financing options. These companies work as independent arbiters who take a wider lens perspective of the industry at large and advise commercial entities about what models will be more sustainable for their circumstances. Whatever choice is adopted by the brand, it is always beneficial to run the exercise by expert services first before settling on one of the solar panel financing options.

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