With a cash purchase of a commercial solar energy system, it is not uncommon to achieve payback in 5 to 18 years and this depends entirely on your existing tariff and energy profile. After that, your business will enjoy decreased operating costs with free solar power for the remaining life of your solar energy installation. The useful life of the system is warranted and guaranteed at more than 25 years and suppliers say the panels will still be operating at over 80% effectiveness even after 20 years. These same advantages apply for a business loan, although the payback will be slower due to interest charges. However, with today’s interest rates, your ROI and IRR on a commercial solar investment should still be substantial. Commercial solar panel maintenance costs are minimal, requiring occasional cleaning of the solar panels and replacing the system’s inverter every 12 to 15 years. These services can be contracted to a third party such as Energy Capital. It must be noted that the overall return o your solar system over its lifespan will still be significant.
At Energy Capital, it is our mission to provide a renewable energy system provided and funded within a structure that makes the best sense for the business while ensuring long term warranties and guarantees on the performance of the systems provided.
As with solar leases, commercial solar PPA structures can vary widely and are negotiable. Some will have an option to the client to buy themselves out of the PPA prior to the end of the term while most will run the full term. The cost of the energy generated by the PPA provider will be linked to the increases determined by NERSA or other determined metrics.