Double Cost Saving Initiatives Make Solar Panels The Go-To Power Source For Commercial Properties
Back in the 80s when solar power was still a fresh new technology out of the research labs, Australia was one of the first countries to realize its full potential. The many kilometres that stretched across the outback necessitated a different way to get power to the outstations, and solar power was the answer. Sadly, this technology has since regressed and Australia has moved back to the use of coal for energy. Not only does this create a lot of stress for the environment, it is a waste of the clean energy available to Australia with the abundance of sun year round.
Australians Are Becoming More Aware of the Importance of Sustainable Energy
*A recent study done by The Climate Institute revealed that Australians are moving towards sustainable energy once again as they believe climate change is a real danger. This brings forth more discussion on the need for change in government. Households have already taken the initiative with personal solar power in order to reduce the strain on the environment. The biggest impact will be commercial installations as they tend to place the most amount of pressure on the grid. Commercial property owners are encouraged to make the change in order to relieve pressure off natural resources and harness sustainable energy.
The effect is also felt in the US, where corporate push back and countless lobbying against sustainable energy initiatives stalled progress of solar installations. The high cost of solar technology was another aspect to consider, and even with tax initiatives and finance incentives, the ordinary household was still hard pressed to scrape together the money to afford what was then considered a luxury item. In 2016 **a reduction in the manufacturing cost dropped the purchase price and the average consumer could now afford solar energy. This also provided a massive boost to local economies.
Solar Power – What’s In It For Commercial Property Owners?
Apart from the obvious effect a mass exodus of power grid reliance will have on the environment, there is also the effect on the bottom line. With the reduced cost of solar energy installations, the technology is now more affordable to commercial property owners as well. This means that commercial properties can invest their money into a solar PV system, and achieve a fantastic IRR (internal rate of return).
There is also the other side of the coin. Commercial property owners qualify for large discounts by engaging in a solar PV system installation. This energy saving activity generates LGCs (large-scale generation certificates) and STCs (Small-scale Technology Certificates). A single STC is equivalent to one megawatt hour of electricity generation produced until 2030 (the “deeming period”). These certificates are a commodity that can be traded in, for a monetary discount on your purchase price of the Solar PV system.
There are also funding options available for businesses who wish to invest in solar PV, to avoid the need to lay out any capital for their installations.
The final point to consider for commercial property owners when installing solar power is the value of their properties and safeguarding themselves against future environmental restrictions. By lowering their carbon footprint, they could avoid future environmental taxes that may be imposed should the situation not improve globally. The reality of the need for cleaner power and reduced resources can only be ignored for so long before it has a direct effect on the major economies in the world. By investing in this now, businesses invest in the future of their assets which will only retain value if the economies remain active.
Contributed article by Jackie Edwards
* Reference 1: http://www.climateinstitute.org.au/articles/media-releases/support-for-action-on-climate-change-and-renewables-strongest-since-2008.html
** Reference 2: https://powerscout.com/site/how-solar-can-save-you-in-retirement/
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