In continuation with the “buying vs leasing” debate, the second financing option is a ‘solar lease model.’ On paper, for many organizations solar leasing sounds Read more Part II: Financing your solar installation
Going solar not only saves up a substantial chunk of your energy bills but is also the biggest step any organization can take at being more environmentally conscious. However, with the decision comes the daunting task of deciding on a solar financing option.
Fortunately, going solar is affordable by making an informed decision about the best funding options; be it buying or leasing. Some key factors to consider when deciding on ‘cash purchase’ as a financial option are as below;
Buying a solar panel system seems like a big up-front cost but it really is a long-term investment. An organization that decides to pay a little more up-front can reap benefits for decades to come. More so, a 30 percent reduction in electricity bills reflects the expected amount of savings. Other advantages include:
• A reduction in the total time required for installation
• Generally, a maximum return on investment is offered
• Complete ownership of the asset
However, with complete ownership of the asset also comes an organization’s sole responsibility of both its operation and maintenance. Therefore, if/when considering the cash purchase route capital costs and product warranties should be taken under careful consideration.
Lastly, the graphic representation of a textile business case model below will help in demonstrating an organization’s cumulative savings. More so, it will help in concluding one part of the ‘buying vs leasing’ debate.
An organization opting to go for a cash purchase on a 1000 KW solar power project that is an on-grid system (with all other factors such as, rooftop etc. constant) can reap savings as high as 800 million. The savings in case of a cash purchase model sees a steep, steady growth as the organization is producing its own electricity. There by reducing their cost and increasing their overall savings.
1. How do solar panels actually work? Solar panels are made of highly excitable, conductive materials. When the sun’s rays hit the solar panels, the reaction Read more 8 of the most commonly asked questions on solar energy
Every site is completely different; hence the cleaning frequency varies from one site to the other. The five essential factors that affect the cleaning schedule Read more How should I clean and maintain my solar panels?
The only distinction between buying and leasing a system is in terms of ownership. In a purchase model, you own the solution; whereas under a Read more Should you buy or lease a solar solution?
For a country like Pakistan which has roughly 250 sunny days in a year, the solar power industry has a lot of potential and solar Read more Always been an electricity consumer? See what it takes to be an electricity producer