04 Dec 2017
Over the last two years, power prices in Australia have doubled which has put immense pressure on many businesses.
Commercial solar has emerged as the best course of action that businesses can take to get control back of their electricity expenses and reduce their exposure to the risks associated with price volatility.
So what benefits are available?
Small Technology Certificates (STC’s)
If the system size is under 100Kw, then businesses are eligible for STC’s which come under the Federal Government’s Renewable Energy Target (RET). STC’s are a form of currency and one STC represents 1MWh of projected system production up until 2031. STC’s are created on
the day of installation and installers typically offer this as a point of sale discount, although customers are able to hold them and trade them at a later time if they like.
Large Scale Generation Certificates
If the system installed is over 100kW, then the system is classed as a renewable energy power station and it qualifies for LGC’s which are created on a yearly based on the actual amount of energy the system produces. The key difference between STC’s and LGC’s is that LGC’s produce an income stream each year on actual production whereas STC’s are paid upfront on install. 1 LGC represents 1Mwh of energy produced by the system in a given year.
Feed-in Tariffs
A Feed in Tariff pays you for the excess electricity that your solar system produces that isn’t used in the business, most likely on weekends.
Rates vary depending on your retailer so once your system is installed, it’s worth shopping around to determine if you’re getting the best rate.
NAB Low Interest Loans
NAB has teamed up with the Clean Energy Finance Corporation to provide $120 million worth of discounted loans for energy efficient improvements to businesses which includes commercial PV. The discount rate is currently 0.7%
Environmental Upgrade Funding
Environmental Upgrade funding is a financial product offered by NAB from $250,000 to $10,0000 for sustainable improvements to existing buildings. The aim of the product is to incentivise building owners to make improvements which tenants traditionally reap the benefits of. Under this model, payments are made through increased council rates, however it is expected that the benefit of reduced electricity bills will outweigh any increase in rates.
Energy Efficiency Loan
These loans were created through partnership between the CBA and the Clean Energy Finance Corporation and offer a rate of 0.7% discount rate on energy efficient vehicles and equipment in your business, including solar.
As you can see, there are many ways that your business can benefit from installing a commercial solar system on top of the major benefit which is savings on your energy bills.
If you’d like to find out more, Solar Market can organise 3 obligation free proposals through our network of Clean Energy Council approved solar installers. Fill out the form below to get started.
