Electrical and building contractors are entering the burgeoning photovoltaic (PV) system supply industry as a result of rising energy costs and favourable government policies including rebates and incentives.

A key question for new solar energy players and their customers is how to absorb the relatively high up-front cost of acquiring and installing the PV system.

For business customers at least one solution for the supplier is a typical goods rental agreement, modified for energy supply and use.

Alternatively, a supplier may want to involve a financier to avoid the regulatory requirement of a credit licence to lease to households. This needs to be done carefully as the amortisation profile of PV systems necessitates lengthier terms than are typically found in consumer leases, making for a potentially more complicated credit contract.

The contract will also need to cover a right of access to monitor and if necessary retrieve the PV system. Business will also need advice on whether they need to register on the Personal Property Securities Register (PPSR) or even consider a caveat on the property the PV system is affixed to.

Another solution is the Solar Power Purchase Agreement (SPPA)

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