Financing a Commercial Solar Rooftop

For commercial premises that consume a significant amount of electricity on site, installing solar panels on the rooftops is a great way to reduce the cost burden. A photovoltaic (PV) technology leader with over 3,000 large-scale rooftop projects already implemented across the world, BELECTRIC is happy to design, plan, construct and operate your commercial solar rooftop project. We can also offer a number of ways of financing commercial solar rooftops.

Financing commercial solar rooftopsSelf funding for commercial solar rooftops

BELECTRIC carries out the PV system installation but the customer finances, takes full ownership of and operates the PV system itself. All benefits of the PV system — including all FiT, ROC and grid export income as well as onsite electricity savings — are received directly by the customer. The operation and maintenance (O&M) of the installed PV system, plant and equipment is either undertaken by the customer direct or through a maintenance contract with BELECTRIC UK or a third party.

Lease purchase (asset financing) for commercial solar rooftops

With this option, BELECTRIC will generally arrange asset financing of the installation (secured against project assets) while the customer assumes ownership of it subject to a funding agreement. BELECTRIC’s lease-asset finance arrangement requires zero upfront capital expenditure. Generally the customer receives the electricity, FiT, ROC, export and all other receipts, and uses them to repay the finance according to a negotiated formula, with variables including the rental term (generally up to 10 years) and the possibility of “step rentals” rather than a fixed monthly amount. The customer either undertakes O&M directly or through a maintenance contract with BELECTRIC UK or a third party.

Financing commercial solar rooftopsPower Purchase Agreement (PPA) for commercial solar rooftops

The advantage of a PPA is that, with no capital outlay, the customer can buy electricity on a “pay as you use” basis from BELECTRIC at much cheaper rates than are available through the grid. The customer enters a lease agreement with BELECTRIC UK — usually for a minimum of 20 years but other periods can be specified — and we then carry out the entire installation, from financing to system operation. We retain ownership of the PV system, bear all system O&M costs, and collect any FiT (feed-in tarriff), ROC (renewables obligation certificate) and export payments. The asset (the solar PV system) is transferable and the customer can purchase it at any time during the term of the lease.

A related option is a forward PPA (FPPA) in which the customer makes an upfront investment to cover the cost of all electricity produced and consumed on site over the lease period. Because the electricity supplied is then free, the customer is protected further against inflation-tied tariff increases and energy price rises.

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