Owning the system and selling the output.
WHAT IT MEANS
You install and own the system, and the customer pays for the energy or a monthly fee.
WHY CUSTOMERS WANT IT
No capital outlay.
WHY IT IS DIFFICULT
You fund the entire system and recover it over years.
WHAT IT REQUIRES
Capital The ability to wait for return Confidence the customer will keep paying Ability to service the system for its life
WHAT TO ESTABLISH BEFORE OFFERING IT
Your funding cost The payback period What happens if the customer stops paying
WHY THAT LAST QUESTION
It is the central risk.
WHAT OPTIONS EXIST
Prepayment: energy supplied against credit purchased
Remote disablement, where technically and legally appropriate Security over the equipment
WHY PREPAYMENT WORKS BEST
It removes the collection risk entirely.
WHAT TO ESTABLISH
Metering and payment arrangements that are reliable.
WHAT TO AGREE IN WRITING
Ownership of the equipment What the customer pays and for what Who maintains it What happens at the end of the term What happens if either party ends it Access rights for maintenance and removal
WHY ACCESS RIGHTS
Equipment you own on someone else's premises is difficult to recover without them.
WHAT TO ESTABLISH ABOUT PREMISES
Whether the customer owns or rents.
WHY
A tenant leaving creates a serious problem.
WHAT TO PLAN FOR
Maintenance over the full term, costed.
