AUSTRALIAN  SOLAR

POWER CONSULTANTS

Solar for Business Program Sponsored by Australian Solar Power Consultants

 

 


Solar for Business

While solar systems have become very popular with homeowners, it is actually businesses which can benefit most from a solar system.

Solar for Small Business

Quite simply, those who benefit most from having a solar system are those who use electricity in the daytime. Standard electricity rates for business are around 26-28 cents per kW. A 15kW system can be expected to generate around 65kWh per day. If all electricity generated is used for 70% of the days each year, after allowing for weekends and Public Holidays, this system has the potential to save well over $6,000 in electricity costs in the first year. The savings will increase each year as electricity costs increase.

For very little cost we can usually to load up a 15 kW inverter with up to 33% more panels, for very little extra cost, and the system will produce much more.

Based on the current cost of such a system the savings can pay it off in around 3.5 - 4 years. The Return on Investment (ROI),in this case is around 28%! Most businesses will find it hard to beat that as investment. But there is more. A business can claim back the GST, reducing the cost by around 10%. Furthermore the business can claim depreciation.So the adjusted payback period, considering all factors, can be as little as 2.5 years

Incidentally a business that operates 7 days a week can save around 30% more than the above.

Where does one get a better investment than that!

A solar system with these potential savings also has the potential to increase the value of a business and increase the business profitability, making it easier to sell when the time for selling comes around.

No up Front Costs

With our self-financing model we can install a system for a business that qualifies for no up-front costs. We aim to structure repayments so that the savings in electricity costs more than covers the repayments. In other words it is cash flow positive from day1. Even with our financing option a business may be able to pay off the system from savings, in around four years or less depending on usage.
All without spending 1 cent of your own money.

So why would you not do it?

Solar for Large Businesses

Larger businesses which use considerable amounts of electricity will usually be on what is called a Contestable Account. A feature of these accounts is that a Demand Charge is part of the electricity charges. Generally speaking a solar system will have very little impact on Demand Charges because of the way it is measured and charged.

While a Solar System can still be a good investment for a business with a Demand Charge its benefit will depend on the cost of the system and how much electricity is consumed during daylight hours and over what time periods. A business operating 7 days a week will get a better return from a solar system than one operating 5 days a week.

From July 2015 both Energex and Ergon will be basing their Demand Charge on a kva basis rather than a kWh basis and for businesses with a poor Power Correction Factor this will mean increased Demand Charges.

Power Factor Correction and Voltage Optimisation

A businessís Demand Charge may be improved with the use of Power Factor Correction and Voltage Optimisation equipment. By studying a businessís power consumption we can give a guide as to whether this can apply in any particular case. We then call in expert electrical engineers to make an assessment and provide a quotation for any such recommended equipment.

This is done on an obligation free basis and we can package together an energy saving program that may involve a Solar System, Power Factor and, or Voltage Optimisation equipment and Energy Efficient Lighting.

We have seen businesses reduce their lighting costs by 60% when converting to energy efficient lighting.

The Importance of Power Management

There are also power management and efficiency practices that can be employed which may be able to reduce Demand Charges. We discuss these on a case by case basis after making an analysis of a businessís electricity consumption and practices.

Call Australian Solar Power Consultants today on 07 3888 2409 to arrange a free, professional assessment and quotation.
Changes from 1st Jan 2015 will add to the cost and restrict feed back, thus reducing income.


 

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