Commercial Solar Finance
Commercial Solar Finance Options for Australian Businesses
ASLS specialises in commercial solar finance for Australian businesses, solar installers and vendors. The three primary structures we arrange are Power Purchase Agreements (PPAs), Commercial Solar Leases and Chattel Mortgages. Each works differently, particularly around upfront cost, payments and equipment ownership.
Compare PPA, Solar Lease and Chattel Mortgage
| Feature | PPA | Solar Lease | Chattel Mortgage |
|---|---|---|---|
| Upfront capital | Potentially $0 for eligible projects | Project cost spread through lease payments | Asset financed |
| What customer pays for | Solar energy under PPA | Use of financed equipment under lease | Financed asset |
| Ownership during term | Relevant energy provider | According to lease agreement | Customer owns asset from settlement |
| Maintenance / cleaning | Energy provider under applicable PPA | According to agreement | Generally customer responsibility |
| Best suited to | Avoiding upfront capex / energy-cost structure | Predictable lease-payment structure | Businesses seeking ownership |
Commercial Solar PPA
A commercial solar Power Purchase Agreement allows an eligible business to access solar without purchasing the complete system upfront. The customer purchases the solar energy generated under an agreed PPA, while the relevant energy provider funds and owns the approved equipment during the applicable term.
Commercial Solar Lease
A Commercial Solar Lease allows an eligible business to access commercial solar equipment through an agreed schedule of contractual lease payments rather than purchasing the complete system upfront.
Commercial Solar Chattel Mortgage
A Chattel Mortgage is a commercial asset-finance structure that allows an eligible business to finance approved solar equipment while owning the financed asset from settlement. The financier takes security over the equipment until the finance obligation has been satisfied.