Financial proposal
Solar finance glossary · South Africa
Quick definition
A financial proposal is the complete financial case for a solar project, setting out the system, its expected energy production and savings, the proposed finance structure or structures, the projected cash flows over the term, and the tax and accounting effects, prepared for the customer and reused in the funder application.
Where an indicative proposal answers "roughly what will this cost me?", the financial proposal answers "does this project pay for itself, under which structure, and on what assumptions?". It typically includes a consumption and tariff analysis, a year-by-year model of savings versus repayments, payback and IRR, the Section 12B treatment where applicable, and a comparison of asset finance, rental, rent-to-own and PPA on the same site.
In South Africa the financial proposal has become the central document of a commercial solar sale because the funder, the customer's accountant and the installer all work from it. Consistency between the proposal and the application is one of the things funders check first.
ArkFlow is a software platform that facilitates building the financial proposal from the same data that feeds the application, so the two cannot drift apart.
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Asset Finance vs Rent-to-Own vs PPA: Solar Finance Structures Compared →Compare solar finance structures in South Africa: Asset Finance, Rent-to-Own and PPA. See terms, ownership and tax so you can pick the right one.
ArkFlow is a software platform that facilitates solar finance origination. It is not a bank, lender, credit provider, tax adviser or financial adviser. This definition is general information, not a credit offer or advice. Funders make their own credit decisions and tax treatment should be confirmed with a registered practitioner.