WHY YOU AS A BUSINESS OWNER NEED TO CONSIDER INVESTING IN THE CLEAN ENERGY SECTOR:
- Escalating electricity prices
- Lower installation costs
- Increased efficiency of green energy equipment
- Electricity industry disruption and the era of the "prosumer"
- Environmental goals and Government policies/regulations around renewables and carbon emissions
- The Levelised Cost of Electricity (LCOE) available via solar PV adoption.
HOW DOES A BUSINESS OWNER TAKE ADVANTAGE OF WHAT'S ON OFFER IN THE CLEAN ENERGY SECTOR?
Before we provide an insight into what's on offer and the drivers of change we will take you through how we will assist you in your journey towards greater business fiscal and energy efficiency
- We will get to know you as a potential customer - How you operate and what you do
- We understand that each business is unique, hence - A customised approach
- We will explain the rationale for the cost of grid power
- We will set out the process, timeframes, proposals, MoU, etc. In essence we will do all the groundwork, with some small assistance from you, taking away all the pressure of the process allowing you to continue what is important for you and that is focusing on growing your business
The remainder of this page has been provided for information purposes and describes various aspects of achieving the savings and efficiency your business may use. We will assist you with your best options.
COMMERCIAL SOLAR REBATES, GRANTS & INCENTIVES
Switching your company on to solar power can be even more cost effective if you’re able to access any of the grants, rebates and other finance options available.
Types of commercial solar rebates, grants and incentives
RECs, STCs and LTCs
Renewable Energy Certificates (RECs) are a tradeable commodity attached to eligible installations of solar power systems. It’s an umbrella term referring to Small-scale Technology Certificates (STCs) and Large-scale Generation Certificates (LGCs).
In a commercial size solar system, their value can be many thousands of dollars. Energy Matters provides a point of sale discount if you elect to sign over your RECs to us. This saves you valuable time and hassle when attempting to trade the certificates yourself.
The Federal Government has decided to close the program under which the certificates operate. Until 2030, the number of certificates issued to each installation will decrease each year, reaching zero in 2030.
While the goal of a commercial solar power system these days is to supply for self consumption, there will be times when production may be surplus to requirements – such as on weekends and public holidays.
Feed-in tariffs pay system owners for surplus electricity exported to the mains grid. Contact our team to find out more. While not strictly classed as a commercial solar rebate, they do mean more money in your pocket.
CBA Energy Efficient Loan
The Commonwealth Bank has partnered with the Clean Energy Finance Corporation (CEFC) to offer the Energy Efficient Loan. This financing option offers competitive rates and as long as a project meets the energy efficiency criteria set by the Australian Government’s CEFC, the Commonwealth Bank can finance up to 100% of the purchase price. Commercial-scale solar power systems can be eligible under the program.
The world of commercial solar rebates, low interest loans, grants and other financial assistance can be a confusing one that constantly shifts and changes. Contact IN THE GREEN for a no-obligation discussion of how solar can improve your bottom line and to learn more about the incentives and/or financing options that may be available to you.
NAB Low Interest Loans
The Clean Energy Finance Corporation (CEFC) is providing $120 million through the National Australia Bank (NAB) for discounted interest loans for energy efficiency and solar energy equipment. The agreement will allow NAB to offer a rate 70 basis points below its standard equipment finance rate.
ANZ Energy Efficient Asset Finance
Get an additional 0.7% p.a. discount on your standard asset finance rate for eligible energy efficient assets through ANZ’s relationship with the Clean Energy Finance Corporation.
The discount applies to finance up to $5m for new assets that meet the energy efficient eligibility criteria. Here are some of the assets that may be eligibile:
- Electric and other energy-efficient vehicles such as tractors and other wheeled equipment
- Energy efficient refrigeration, heating and cooling equipment, variable speed drives, lighting and irrigation equipment
- Roof top and ground mounted solar
Westpac Energy Efficient Finance
Westpac is helping Australian businesses reduce their energy costs and environmental footprint by providing financial solutions for energy efficient equipment.
- Supported by a $200 million financing arrangement entered into with the Clean Energy Finance Corporation, a 0.70% p.a. discount on the interest rate which would have otherwise applied.
- Customers can choose to receive specialist advice through external energy experts Verdia, to help them design energy efficient projects.
- Choose from 3 equipment finance products - Westpac finance lease, commercial loan and commercial hire purchase
- Minimum finance amount - $15,000
- Finance could be structured over the life expectancy of the asset.
- Get certainty with fixed payments on a finance lease and commercial hire purchase, or a fixed interest rate on a commercial loan.
- Potential tax benefits - depending on the equipment finance option you choose.
Environmental Upgrade Finance/Agreement(EUAs)
Environmental Upgrade Finance is a method of financing that provides funding from $250,000 to $10 million and beyond for the sustainable retrofitting of commercial buildings. The interest rate is competitive compared with traditional financing:
- Loan to customer repaid via higher Council rates /levy added
- Council involvement adds comfort and allows for long term cost effective capital provision
- Designed for larger systems
- Three party agreement with Council, Funder and Customer
- Tenant pass through in certain States creates unique product
- Term is flexible but designed to be long dated
- Customer assumes operating risk, except if separately contracted
Local Government Finance Program
The Clean Energy Finance Corporation’s Local Government Finance Program provides flexible and competitive fixed-rate, long-term finance for councils. More
Through the program, the CEFC provides flexible and competitive fixed-rate, long-term finance for councils. It targets major investment projects with the potential to make a significant difference to a council’s energy consumption.
- Finance for eligible projects across renewable energy, energy efficiency and low emissions technologies
- Finance can be drawn over three years
- Ability for multiple councils to enter into joint financing agreements for eligible projects
- Access to competitive fixed-rate longer-dated senior debt, up to 10 years
- A straightforward approval process with simple loan documentation
Power Purchase Agreements (PPAs)
Solar system installed at $0 upfront with a funding partner charging an agreed rate in c/kWh for solar generation, for a set period of time
- Not financing but rather on going service provision including
- O&M and insurance; funder assumes generation risk and sometimes warrants minimum generation
- Typical term = 7 to 20 years
- Payments are for electricity and should be tax deductible
- Exporting income can be retained by Customer through existing retailer arrangements (other models also)
- Cost of funds is higher but risk of ownership for customer is lower (which is important for larger systems)
- Once PPA ends, Customer assumes usual asset risks and costs
REDUCING COMMERCIAL ELECTRICITY DEMAND CHARGES
Are network distributor peak commercial electricity demand charges imposed on Australian businesses like death and taxes – unavoidable? To a degree they are; but like the latter, they can be minimized.
What Is A Demand Charge?
A demand charge/tariff, also known as a capacity charge, is an element of a commercial power bill where a daily charge is determined by the highest power demand (load) observed during a certain timeframe during the day in a specified period.
This period can be up to a year in some cases for commercial customers.
As an example, if a business has a peak demand of 50kW due to a large pump running for just one hour on a single day in a year, they may be hit with a daily demand charge to use up to that level for a full year. This occurs even though normal usage may only be 5 or 10kW at any given time.
Demand charges can also have different tiers – so the higher the load, the more your company may be slugged per day for an entire year from the billing period when the peak was observed.
With peak demand charges increasingly eating in to a company’s bottom line, it makes good business sense to take swift action in minimizing them.
How To Reduce Commercial Electricity Demand Charges
To reduce the impact of capacity charges on your business, here’s a few strategies:
- Audit your consumption to identify risky periods
- Avoid concurrent use of energy-hungry equipment.
- Shift high loads from time periods during the day when demand charges are determined.
- When considering the purchase of new equipment, compare the load ratings.
- Install equipment that will switch off non-essential equipment during peak periods (load shedding).
- Install solar and/or battery storage or retrofit commercial energy storage to an existing solar power installation.
Commercial Solar And Storage Can Help
A properly designed, good quality commercial solar power system combined with expert energy management advice can help a business avoid exceeding load thresholds and reduce capacity charges dramatically.
With a commercial energy storage system added to a solar PV system, solar power becomes even more effective; particularly in scenarios where peak electricity load may fall outside of solar production times.
Contact us now about minimizing your commercial electricity demand charges through the use of solar and battery systems via our contact form.
Our team will carefully analyse your power consumption profile and provide a detailed solution, including potential savings, for your review, obligation-free.