Solar 2020: Solar Leasing

Solar Leasing

Leasing adds up to a better system

The upfront cost has been the major barrier that has prevented more householders adopting solar panels. But research by the CSIRO and the APVI found that an overwhelming majority of Australian respondents preferred the idea of paying upfront to using finance despite the fact that “being able to afford the technology” remained an important factor.

While the bigger systems cost more than a few thousand dollars, or the payback period was beyond five years (close to the turnover rate of homeownership), the cost barrier remained. But there is now a surge in interest in financing photo-voltaic panels PV in Australia, following a boom in other solar markets, particularly the US.

Recent figures highlight the shift in the US market, noting that over 75 per cent of California’s new residential solar systems in 2012 were leased as compared to less than 10 per cent in 2007.

We think this will also change in Australia, partly because households have typically focused on small, low-cost systems with significant rebates. We have benefited from foreign exchange rates and feed-in tariffs too, so the financial benefit has arguably outweighed the cost of using your own capital.

But since the rebates and tariffs have been reduced, the payback period has pushed out to the 5-7 year range. Also solar buyers now understand that 1.5kW systems are really a bit small for the average home; and average system sizes have steadily risen, to around 3kW. People also understand the need for better quality systems.

Now that the cashed-up, early adopters of the technology have bought their systems, a lot of people are taking the view that solar is a basic service like any other. So why not get the best system on finance, get the best savings and let it pay itself off.

It makes dollars and sense

The high initial capital outlay of installing solar panels has been cited as the major barrier that has prevented more householders adopting them across Australia.

Despite the advantages of using finance to install a system that would more than pay for itself, research by the CSIRO and the APVI found that a majority of Australian respondents preferred the idea of paying upfront. But finding that first few thousand dollars is not always easy.

While the bigger systems were financially out of reach, or the payback period was beyond five years (close to the turnover rate of home ownership), the cost barrier remained. But there is now a surge in interest in financing photo-voltaic panels in Australia, following a boom in other countries.

We think this will also change in Australia, partly because households have typically focused on small, low-cost systems with significant rebates and generous feed-in tariffs.

But since the rebates and tariffs have been reduced, the payback period has pushed out to the 5-7 year range. Also solar buyers now understand that 1.5kW systems are really a bit small for the average home; and average system sizes have steadily risen, to around 3kW. People also understand the need for better quality systems.

Now that the cashed-up, early adopters of the technology have bought their systems, a lot of people are taking the view that solar is a basic service like any other. So why not get the best system on finance, get the best savings and let it pay itself off.

Talk to our people about leasing a system that will dramatically slash your power bills and basically make you immune to the continuing rise in electricity prices.

Commercial Solar Systems for Businesses

NO Upfront Costs

With leasing option or choose to pay upfront for additional discount.

Savings Exceed Repayments

Our Solutions can be cash flow neutral on a 5 to 7 year lease.
Make use of Financial Incentives for businesses and save thousands of dollars on your purchase.
Enjoy Top Quality components from leading manufacturers such as LG panels and SMA inverters.
Contact Solar 2020 for a free consultation

Residential Enquiries

CALL 0419 305 771

Commercial Enquiries

CALL 0422 975 591

Postal

PO Box 2658,
Clarkson WA 6030

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