Solar PV and LED Lighting are proving even more so to be a good investment for Australian businesses, with recent confirmation that Energy Australia, AGL and Origin have planned a big increase in their electricity and gas rates. These rates will come into effect from 1 July 2017, for business and residential.
The below energy rate increases are significant and higher than some expected:
- Energy Australia – up to 19.9% increase in electricity, gas 10.7%
- Origin Energy – up to 16% increase in electricity
- AGL – up to 16% increase in electricity, gas 9.3%
“In comparison, electricity prices across all retailers rose by an average of 8 per cent last year, according to a St Vincent de Paul Society report.
St Vincent de Paul Society’s Gavin Dufty said Energy Australia’s increase was slightly higher than expected, and cautioned consumers that it “would not be the end.”
In our Solar PV proposals, we give you the projected energy savings that you should expect, if you make the switch to renewable energy. These energy saving projections are based on a number of factors including your current electricity rate, current electricity consumption, and expected reduction in grid electricity consumption. Also taken into account your expected utilisation rate of your solar PV system, meaning how much of the energy produced by your system you will actually use, and not export to the grid.
A considerable factor in these energy savings calculations is the expected annual increase of electricity rates. Up until now we have conservatively assumed an increase in electricity rates of 6% per annum. With the recent spike in electricity rates (up to 19.9% on 1st July 2017), solar PV investment is now even more attractive as it presents greater energy savings each year.
This is a trend that is not expected to stop now, as wholesale rates increase for energy retailers, these costs are being passed onto the commercial and residential consumer.
Energy efficient products such as LED lighting, Solar PV and HVAC efficiency solutions, are proving to be a great investment for Australian businesses. With the rising electricity rates, energy bills will be an increasing strain on monthly running costs. Solar energy is a great option not only for the reason of increasing electricity rates, but also because of the way most businesses consume energy.
Solar PV systems without battery storage are only effective if you use most of your energy during the day whilst the solar unit is actually producing energy. As most businesses operate during the day when the sun is shining, they can maximise the use of the energy being produced by the Solar PV System. Any energy produced by the solar unit that is not consumed at the time, is wasted and exported to the grid.
From an international outlook, Australian businesses in particular can benefit from Solar Energy, as they have the advantage of this country’s vast amount of yearly sunlight.
6 Reasons it makes sense for businesses to switch to Solar PV:
- Reduce the impact of rising electricity rates and the upcoming spike in rates from Energy Australia, AGL, Origin on 1st July 2017. Solar Energy therefore presents significant ongoing energy savings by reducing your exposure to expensive grid rates, and future increases.
- Recent drop in price for solar components i.e solar panels, inverters etc means the investment outlay is now considerably cheaper.
- Businesses do not necessarily require battery storage as most operate during daylight hours and therefore use most of, and in some cases all of the energy produced by the solar PV system. Businesses achieve fantastic utilisation rates for their investment, if the system they are sold is not too big for what they actually require (always ask for your utilisation rate and Internal Rate of Return).
- Reduction in Carbon Emissions. Switching to renewable energy results in a better reputation for your business. Consumers value companies that incorporate eco-friendly practices into their corporate social responsibility plan.
- Generous Government rebates available (Easily Green Energy Solutions offer this rebate as a discount upfront on your quote. This means you do not have to outlay the total amount and wait for your discount, it is given to you at point of sale).
- Our climate is ideal for solar energy. In Australia, we have the advantage of high levels of yearly sunlight exposure.