Why use Broadreach to finance a system?

With electricity prices, power supply disruptions and climate change pressures all increasing, the case for affordable green power is made.  But what benefit is there in using Broadreach to help you with your energy solution when you could pay for the system yourself?

Once you factor in the legal costs of contracting engineers, supervising construction, and then operating, maintaining, repairing and insuring a system yourself, it is unlikely to be a less expensive alternative. Additionally, Broadreach can carry the risk if anything goes wrong during the construction and operation of a system, so you will only ever make savings without having to spend a cent. In short, Broadreach can offer you a peace-of-mind solution to your energy needs.

What are the options?

Power Purchase Agreements (PPAs)

In terms of a PPA, Broadreach will build a system for you, and then operate, maintain, repair and insure it over the life of the PPA, at no up-front cost to you.

Instead, you pay for the electricity produced at a rate per kilowatt hour (kWh, or “unit”) in the same way you would pay your utility – except of course, that the rate is cheaper and our annual escalations are lower.  Structured and implemented correctly, a PPA can be “off balance sheet” – i.e. it will not be seen as a finance lease or other form of debt on your balance sheet.  The terms range from as short as 5 years, up to 20 years, and in longer contracts the option exists for you take ownership of the system at the end of the contract.

Under a PPA, you take no risk – if the system doesn’t produce electricity, you have nothing to pay for, so the risk of making sure the system works is ours.

Solar Leases / Equipment Leases

As with a PPA, under a “Solar Lease” Broadreach will build, operate, maintain and insure a system for you.  At the same time we sell the system to you on a “lease-to-own” basis in return for fixed monthly payments.  You get the use of the system and the electricity it produces for the duration of the contract, and ownership of the system at the end.

Under a “Solar Lease”, Broadreach guarantees the energy production from the system and reimburses you for any under-production, so again you only pay for what you receive and the risk of the system performing lies with us. The contract terms typically range from 5 to 20 years.

An equivalent of the “Solar Lease” can also be used to finance energy efficiency projects, in very much the same manner as for a solar PV system.

A “Solar Lease” or equipment lease will be “on balance sheet”, meaning it will be seen as debt on your balance sheet (unlike a PPA).  However, the costs under this agreement are usually lower than a PPA as there is a special depreciation allowance (section 12B of the Income Tax Act) that you can claim.