Power Purchase Agreement
The customer purchases generated solar energy under an agreed PPA while the relevant provider funds and owns the approved equipment during the applicable term.
ASLS Commercial Solar Finance Guide
How Commercial Solar Finance Works in Australia
Commercial solar finance allows an eligible Australian business to progress an approved solar project using a structured payment arrangement instead of necessarily purchasing the complete system upfront. Common pathways include a Power Purchase Agreement, Solar Lease and Chattel Mortgage. The right option depends on the site, applicant, cash-flow objectives, ownership preference and applicable provider assessment.
Published · By Australian Solar Lending Solutions
What Commercial Solar Finance Options Are Available?
Commercial Solar Lease
The business uses approved equipment under an agreed schedule of lease payments, with ownership and end-of-term arrangements governed by the lease.
Chattel Mortgage
The business finances approved equipment and generally owns it from settlement while the finance provider takes security over the asset.
What Should a Business Compare?
- Whether the business wants to buy energy, lease equipment or own the financed asset
- The amount of upfront capital available for the project
- The proposed payment amount, frequency and agreement term
- Maintenance, insurance and operational responsibilities
- Early termination, payout and end-of-term arrangements
- Site tenure, landlord consent and installation rights
- Credit, documentation and provider eligibility requirements
How Does the Assessment Process Begin?
An initial commercial solar finance review generally starts with the business identity and ABN history, installation address, premises ownership, electricity use, proposed system, installer quotation and preferred timing. Additional financial, credit, technical or contractual information may be required by the applicable provider.
ASLS helps structure and coordinate the enquiry. It does not make the final credit decision or replace the provider's agreement, disclosure documents or approval conditions.
Independent Advice and Current Information
Commercial solar agreements can have accounting, taxation, legal and operational consequences. A business should review the complete provider documents and obtain independent professional advice for its circumstances before proceeding.