Over the past decade, there has been a significant shift in the way businesses are approaching renewable energy. In particular, more and more businesses are turning to solar power as a way to reduce their carbon footprint and save money on energy costs.
However, the way businesses are choosing to finance their solar projects is also changing.
Traditionally, businesses have financed solar projects through capital expenses. This involves purchasing and owning the solar panels, which can be a significant upfront cost.
But thanks to innovative technologies that allow solar panels to be relocated or returned and redeployed, new investment models like solar as a subscription have changed the way businesses of any size can access solar energy. Under this model, businesses can pay a monthly fee to access solar energy, rather than owning the solar panels themselves.
In this article, we’ll explore why businesses are taking up solar as a subscription instead of other finance options.
Solar as a Subscription is not that same as Financing Terms
It’s important to note that while solar subscriptions and capital expenses may both involve accessing solar energy, they are not the same thing.
A solar subscription is a service-based agreement where businesses pay a monthly fee to access solar energy and Solpod is the only supplier offering this model! On the other hand, a capital expense involves purchasing and owning the solar panels, which can be a significant upfront cost.
One key difference between the two models is the ownership of the solar panels.
With a solar subscription, the third-party provider owns the solar panels. In contrast, with a capital expense, you own the solar panels and are responsible for any damage to the panels or the roof they sit on.
Payment Plan ≠ Subscription
It’s also important to note that the terms for a solar subscription are different from those for a capital expense.
When financing a capital expense, businesses may have to secure a loan and make monthly payments until the cost of the solar panels is paid off.
In contrast, with a solar subscription, businesses do not need to provide any upfront capital and most often the cost of the subscription is covered by the savings on energy the business sees from going solar.
The Benefits of Solar as a Subscription for Businesses
So why are more and more businesses opting for a solar subscription over a capital expense? Here are a few key reasons:
Lower upfront costs:
One of the main benefits of a solar subscription is that businesses can access solar energy without having to make a large upfront investment. This can be especially beneficial for smaller businesses that may not have the capital to invest in solar panels.
Predictable costs:
With a solar subscription, businesses know exactly what they’ll be paying for their solar energy each month. This can make budgeting and financial planning much easier.
Flexibility:
The Solar as a Subscription model is only possible because of the advancements made in solar panel technology.
Traditional fixed solar panels would not be able to be offered on a Solar as a Subscription basis, because once they are installed on a rooftop, it is cost prohibitive to attempt to remove or relocate the panels.
This is where Solpod’s revolutionary redeployable and relocatable solar panels differ to what businesses have come to know about solar panels over the years. Our patented technology enables us to install, remove and relocate our solar panels, without damaging the panels or the roof that they are installed on.
Because of this, we are the only solar company in Australia that can offer a totally flexible solar as a subscription service to any size of business.
Solar as a Subscription vs a Capital Expense
To illustrate the benefits of a solar subscription compared to a capital expense, let’s consider an example. Imagine a business that needs to generate 300,000 kWh of energy per year, and they have two options: purchase and own the solar panels (capital expense) or subscribe to a solar service, like Solpod.
Here’s how the costs might break down over five years for 100kW system for a SME Business:
Capital Expense:
Upfront cost: $110,000
Payback Period: 4-6 Years
Potential Net Savings After 5-Years: -$20,000 to $20,000
Solar Subscription:
Upfront cost: $0
Monthly subscription fee: $2,200
Potential net savings after 5 years: $60,000
As you can see, the solar subscription model can save businesses a significant amount of money over five years. Additionally, the business doesn’t have to worry about maintenance or upkeep, which can be costly and time-consuming.
Solar as a subscription, why not?
With predictable costs, unparalleled flexibility, and zero upfront expenses, a solar subscription can be a smart financial decision for many businesses.
Don’t let traditional solar models limit your business’s potential – switch to solar as a subscription with Solpod and start saving from day one!
Now is the best time to start the journey to a sustainable future for your business and contribute to the fight against climate change. It’s time to take control of your energy bills and future-proof your business with a solar model that benefits your business right now, not 5-years into the future..
Start saving now, to talk with our Solar team via email at hello@solpod.com.au or call 03 9089 0753.