Projections and Modelling
Request 3 Commercial Solar ProposalsFor any business that is considering the installation of a solar system, in addition to the due diligence exercised when researching potential installers, which is addressed on our Solar Market site here, it’s essential to fully understand all aspects of your potential investment.
Even with tax breaks, feed-in tariffs and future bill reduction, this business decision is an investment and you want to ascertain if it will indeed be a solid investment for your business. And, what the full scope of the return on this investment.
To fully understand this potential investment, all realvant factors need to be evaluated. These factors include:
- Total cash output
- System longevity and ongoing maintenenaace costs
- Return on Investment
- Potential system degradation
- Depreciation on capital expenditure
Along with a suppliers history, experience and use of “tier 1” components, ask if they can provide you with a detailed financial model for your potential solar investment. Some of the information to be expected in thusmodel is:
- The projection and forecasting of any potential savings
- Exploration and presentation for the payment of a solar system [capital expenditure, leasing, etc.]
- Proper sizing of the system
- System warranty
- Forecasted electricity production
- Model default values
- Grid connection
- Future planning [increased usage, battery storage, etc]
All of the above should help to ensure that you can make the most informed and educated decions about your business’ potential investment.
