Commercial Solar Finance
We combine our extensive know-how and experience with our access to specialised solar financiers, to provide you with competitive finance options that help maximise the return on your investment under your terms.
Solar Financing for Commercial Businesses
Our flexible finance solutions are designed to enable investment in renewable energy solutions and help increase the competitiveness of your business.
Planet Ark Power works with each customer to provide access to the following finance options:
- Capex model;
- Chattel Mortgage model; or
- Power Purchase Agreement (PPA).
Smart and flexible financing
Debt-free, no interest payments, outright ownership
Under the Capex model, the company uses its funds to purchase the solar asset and is responsible for the ongoing operation and maintenance of the system. The benefits to the business owner are that they may claim operating costs, depreciation expenses as well as claim input tax credits.
The Capex model provides outright ownership of the asset, with no interest costs. The Capex model results in the most attractive return on investment with the lowest Levelized Cost of Electricity, over the lifetime of the asset.
Flexible payment options, lower interest rates, outright ownership
Under the Chattel Mortgage model, a finance company advances the money to the borrower to purchase the solar asset.
The business owner makes regular payments whose cost is offset by the cost savings generated by the solar system. The benefits to the business owner are that they may claim interest and depreciation expenses as well as claim input tax credits upfront.
Chattel Mortgage is a preferred model for businesses that do not want to invest in non-core operations and is useful for managing capital constraints or market uncertainty.
Power Purchase Agreement (PPA)
No up-front costs, plus long-term electricity price stability and predictability
A Power Purchase Agreement (PPA) is a financial agreement where Planet Ark Power manages the design, approvals process, financing, and installation and we are responsible for the ongoing operation and maintenance of the solar energy system, on the customer’s property.
The business owner purchases the power generated by the solar system at a rate lower than the local electricity retailer. At the end of the agreement term the ownership of the solar system is transferred to the customer.
The benefits of a PPA for the business owner are no up-front capital costs, energy savings as soon as the system becomes operational, and no ongoing operating or maintenance costs.