As energy prices keep reaching new heights, this can have a direct impact on your bottom line as a business owner and your household’s cost of living. What is more, most people want to make sure their energy supply is reliable. There are ways to manage this and it doesn’t have to cost you a cent. Thankfully, it can be environmentally friendly as well with the use of solar power.
A few years ago, accessing solar power would have been a stretch for both small business and homeowners. The good news is, the national trends in system prices for different applications have been dropping significantly. According to Bloomberg New Energy Finance, solar PV panel costs have fallen 83 per cent since 2010, and could fall another 37 per cent by 2025. The Australian PV Institute shows that in 2017 pre-subsidy prices for solar system were sitting between $2.01 to $2.24/Watt. This is the best time to explore your options and install solar power.
Three Ways to Access Solar Power
If installing a solar power system on your premises has been something you’ve been considering, but don’t know where to start, we are here to help. Below are three ways to access solar power for your business or home.
Solar Power Purchase Agreements
A Solar Power Purchase Agreement or a Solar PPA is an agreement between you and a solar PPA provider like us. We design, install, operate, and maintain solar power systems on your behalf, saving you time and hassles. As the customer, you will then pay for the amount of electricity the solar power system generates for an agreed price and for an agreed period of time. For more information see our article "What is a Solar PPA" explaining this option.
Solar Power System Financing
Under a solar power system financing scheme, you simply get a loan to install the solar power system. In most cases you will have positive cash flow from day one. You will have a reduced energy bill, and with those savings, you will be able to cover the financing cost. Unlike a solar PPA, the owner of the system will be responsible for, maintenance, cleaning anfd monitoring of the system. This means more time and further costs to ensure the panels are working efficiently over their lifetime.
Solar Power System Buyout
If you have the capital to invest in a solar power system and would like to own it outright, you can simply go the buyout route. You will then have immediate access to reduced energy bills. Typical payback on the system is between three to seven years. However, like financing, the onus of maintenance, cleaning and warranty lies on the owner of the system.
Solar PPA vs Solar Financing vs Buyout
Each type of solar power system option come with its own sets of advantages and disadvantages. Here is a summary to help you understand these.
Picking a Solar Power Option for Your Business
Thinking about these options, and which might suit your business or home can be tricky. Let us help. Get in touch with our Sales Team so they can walk you through benefits of each plan.
References
Bloomberg New Energy Finance 2018, Henbest: Power System Will Dance to Tune of Wind, Solar, Batteries viewed 06 November 2018, <https://about.bnef.com/blog/henbest-power-system-will-dance-tune-wind-solar-batteries/>
Australian PV Institute 2017, National Survey Report of Photovoltaic Applications in AUSTRALIA 2017 Australian PV Institute, viewed 06 November 2018, <http://apvi.org.au/wp-content/uploads/2018/07/PViA-2018-AU.pdf>
Clean Energy Council n.d, Guide to Installing Solar PV for Business and Industry, Clean Energy Council, viewed 06 November 2018, <http://www.solaraccreditation.com.au/consumers/purchasing-your-solar-pv-system/solar-pv-guide-for-businesses.html>