Commercial Solar PPA: Compare Full Cost and End-of-Term Terms
In this guide
“Free solar” usually describes the upfront structure, not the full cost
A zero-upfront label does not show who owns the system, what energy costs, or how a contract can end. Treat each offer as a specific contract—not a market standard. Do not select an offer from the word “free.” Request the draft contract and full payment schedule before comparing it with a purchase.
Before signing, request the full draft. Use the term checklist below to compare contractual commitments, and ask the provider to model the PPA and outright-purchase option using the same load and billing period.
If the seller says the system is “free,” ask who pays and through which contractual charge. If savings are claimed, request the calculation inputs and the bill charges that remain. A missing rate or exit formula means the proposal cannot yet be compared.
Prepare one same-month input set before comparing scenarios
The Betulkex scenario calculator is available from the solar hub. It accepts assumptions for one representative month. Use the same bill period and load assumptions for each proposal; do not turn a seller’s estimate into a measured result.
| Tool input | Match against the proposal | Check before entry |
|---|---|---|
| Premises type | Choose home, shop / SME, or factory / warehouse | Select the tool category matching the premises being assessed |
| Pre-solar premises use (kWh/month) | Premises consumption on the bill for the example month | Use the same account and billing period |
| Generation and self-use (kWh/month) | Provider's estimated generation and on-site use | Separate estimates from measured readings; use the same month and load |
| Avoided import value (RM/kWh) | Incremental value of electricity no longer imported | Exclude fixed charges that remain payable; do not use the whole bill as a unit rate |
| Export rate and credit cap | Rate and credit usable in that billing month | Enter only after the scheme, tariff class and premises are confirmed; do not assume exported energy earns a credit—request the written rule applicable to this account |
| Capital and rebate (RM) | Upfront capital actually paid by the buyer and a confirmed cash rebate | For a provider-owned PPA system, do not count the provider's system capital as yours |
| Monthly payment and annual operating cost | PPA/finance payment and operating costs actually borne by the buyer | Compare contract figures, not the word “free” |
| Share of benefit retained (%) | The percentage you choose for the stress scenario | Enter the percentage you choose for a stress scenario; it is your sensitivity assumption, not a provider forecast or guarantee |
The tool repeats the example month over a year, then subtracts the payment and operating cost entered. It does not model seasons, asset degradation, replacement, tax charges or contract costs that were not entered. MD savings are not an automatic output. Treat the result as your scenario assumption, not a forecast or proof that an offer will save money.
Keep contract terms separate from calculator inputs
The calculator does not judge whether a contract is fair or what happens when its term ends. Ask each provider to document these terms and compare them over the same period:
| Betulkex contract check | What the provider should state |
|---|---|
| Rate and commitment | Energy rate, fixed fees, minimum payments, deposit and escalation schedule |
| Responsibility | System owner, maintenance, insurance, performance remedies and excluded work |
| Site and exit | Roof repair, panel removal, transfer if the property is sold, early-exit amount and removal cost |
| End of term | Final ownership, final payments, renewal or continuation options |
This worksheet compares contract details; it does not establish programme eligibility or energy results. Confirm the export treatment for the applicable scheme, tariff class and account in writing; leave unconfirmed credits out of the scenario.
Total the buyer’s obligations over the actual contract term
Once you have a draft, add the amounts the buyer must pay over the same term. Do not stop at the deposit or monthly instalment. Ask the provider to complete each line and state the final total in RM.
| Buyer payment or credit | PPA / lease / rent-to-own | Cash purchase or financing |
|---|---|---|
| Deposit and pre-installation fees | RM ____ | RM ____ |
| Total scheduled payments over the offer term | RM ____ (schedule + escalators) | RM ____ (cash price or instalments + fees) |
| Service, insurance, repairs and roof work paid by buyer | RM ____ / not stated | RM ____ / not stated |
| Transfer/exit, end-of-term purchase or system-removal cost | RM ____ / not stated | RM ____ / not stated |
| Final payment / system position at expiry | Ownership ____; payment RM ____ | Ownership ____; payment RM ____ |
| Utility bill still payable over the same period | RM ____ | RM ____ |
| Export-credit rights and recipient | Recipient ____; confirmed credit RM ____ / unconfirmed | Recipient ____; confirmed credit RM ____ / unconfirmed |
| Known amount before energy credits; unresolved terms | RM ____; unresolved items: ____ | RM ____; unresolved items: ____ |
This is a total of known commitments, not a lifetime energy-cost forecast or proof of savings. Compare the same payer and term; subtract export credits only for the option whose contract and account confirm receipt. Mark service, replacement and exit obligations that remain unstated.
Frequently asked questions
Who owns the system and what do I receive when the PPA ends?
The scenario tool cannot answer ownership or termination terms. Ask the contract to state title transfer, renewal or continuation terms, system removal costs and every final payment before comparing offers.
Should export credits go into the scenario?
Only after the provider confirms in writing which scheme, tariff class and account treatment applies to this premises; leave unconfirmed credits out.
Does one representative month predict the system's lifetime return?
No. The tool repeats one example month twelve times for an annual scenario. It does not forecast seasons, degradation, replacements, tariff changes or lifetime returns.