Our energy landscape is changing. As the price of power continues to rise, smart businesses are looking for strategies to better manage their energy costs. One solution is investing in renewable energy and energy efficiency, it can generate significant savings in energy use and costs. Energy assets usually involve a large initial investment and very low operating costs. In some cases, access to capital can restrict an organisation’s ability to make these types of investments.
Why finance your solar system or energy efficient lighting installation?
Financing your energy asset might be a good solution for your business as it removes the need to make a large upfront investment. Instead you pay regular monthly instalments. In this way, your cash outflow is better matched to your energy savings. In some cases, the value of these savings may equal, or even exceed the cost of the financing which creates a neutral or positive cash flow.
A solar system for example requires a large initial investment to cover purchasing and installing the equipment. From then on, the costs involved with operating a solar system are minimal. Each year, your solar system can save you money on your energy bill.
Chattel Mortgage allows you to own your solar system immediately.
For eligible solar systems, a Chattel Mortgage entitles you to generate Small-scale Technology Certificates (STCs). These are often used to offset part of the price of your system.
After the final payment has been made and the contract is complete, the mortgage is discharged giving you clear title to the asset.
If you are a business registered for GST you may also be entitled to an input tax credit resulting from your acquisition of the energy asset.
What if I don’t own the building?
We have access to lenders who will consider finance applications from tenants who wish to purchase and install solar and energy efficient lighting equipment in their business premises.
We even have access to lenders who will not only finance the energy assets but the installation costs as well.