So­lar Pow­er­ing Your Busi­ness

Galston, Glenorie and Hills Rural News - - Community News -

Did you know that a good qual­ity 10kW so­lar sys­tem can be on your busi­ness' roof for around $13,000$15000 ?

Five years ago a sim­i­lar sys­tem would have cost around $50k.

So­lar panel prices in Aus­tralia are drop­ping more grad­u­ally than in pre­vi­ous years which means that now is a great time to pur­chase a sys­tem. Many busi­ness own­ers that I’ve spo­ken to don’t seem to re­alise how eas­ily they can dras­ti­cally re­duce their elec­tric­ity bills. Pay­back pe­ri­ods for com­mer­cial so­lar can vary con­sid­er­ably depend­ing on the lo­cal elec­tric­ity tar­iff and the abil­ity for a busi­ness to self-con­sume the elec­tric­ity that it gen­er­ates but in most cases, it’s very com­pelling.

Busi­nesses that face elec­tric­ity tar­iffs of over 30c/kWh may be able to have their in­vest­ment re­turned in as lit­tle as three years although five years is a more re­al­is­tic ex­pec­ta­tion – but that should still make your ac­coun­tant happy.

Due to the fact that elec­tric­ity prices keep ris­ing, the IRR for a so­lar in­vest­ment can be any­where be­tween 10% and 35%.

If cash-flow is tight in your busi­ness (and hon­estly, whose isn’t?), many so­lar com­pa­nies are now of­fer­ing five-year fi­nance terms that can make hire-pur­chas­ing a so­lar power sys­tem a cash-flow pos­i­tive ex­pe­ri­ence from day one.

By this point, you’re prob­a­bly won­der­ing where I’m pulling these crazy-sound­ing fig­ures from. In ac­tual fact, they’re from a pretty re­li­able (and usu­ally con­ser­va­tive) source: In­for­ma­tion is pro­vided by SunWiz for Green En­ergy Mar­ket’s ad­vice to the gov­ern­ment's Clean En­ergy Reg­u­la­tor .The ROI nat­u­rally in­creases as elec­tric­ity prices rise, and it’s al­ready ahead of sched­ule due to the faster-than-ex­pected re­duc­tions in the price of so­lar sys­tems over the last few years.

As you can imag­ine, so­lar sys­tem prof­itabil­ity varies state-by-state due to the dif­fer­ent elec­tric­ity tar­iffs in each state. Prof­itabil­ity is also based on a rea­son­ably-per­form­ing so­lar sys­tem op­er­at­ing for 25 years and as­sumes a 5% an­nual in­crease in elec­tric­ity prices - higher per­form­ing sys­tems and fur­ther elec­tric­ity price hikes only in­crease the fi­nan­cial in­comes even more. So, why haven’t more busi­nesses bought a so­lar power sys­tem? Typ­i­cally it is be­cause they don’t own their busi­ness premises, which can make it dif­fi­cult. Although if you can get a pay­back of 5 years and have a pro­gres­sive land­lord, so­lar on a rented prop­erty can make a lot of sense for the ten­ant and the land­lord.

Hon­estly, though? I sus­pect it’s pri­mar­ily due to a lack of un­der­stand­ing about the op­por­tu­nity pre­sented by so­lar – which is what I’m hop­ing to ad­dress by writ­ing this !

Many busi­nesses are too busy with the day-to-day op­er­a­tions in­volved with run­ning a busi­ness to ac­tu­ally ring around to get quotes for so­lar So just make 1 call to me at Sky­line So­lar and ill take care of the rest.

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