Solar installation distilled – look for 25c/kWh

The recent discussion of the federal government’s Renewable Energy Target (RET) has assumed that without the target there is no business case to install solar power to your commercial roof. Modelling undertaken by Sustainable Melbourne Fund has revealed that even without the RET – it makes good business sense to install solar.

The key is to see an installation of solar on your building as a business efficiency opportunity rather the opportunity to take advantage of a government subsidy programs. Under modelling completed by Sustainable Melbourne Fund, if your business is charged more than 25 cents/kWh, an installation of solar, financed through SMF, would likely result in a project that is cash flow positive from day 1. For the electricity tariffs that are below 25 cents/kWh the incorporation of a lighting project with a solar installation will shorten the payback period and may present a cash flow positive or neutral outcome.

The business and building owners we have helped install solar in the past comment on both the practical and moral benefits of installing solar. While the process they went through to verify if solar was appropriate for them was grounded in cash flow analysis, they also see solar as also demonstrating the leadership and global mindedness of their companies as well as a positive talking point to their customers, suppliers and neighbours. No different to installing solar on their home.

City Of Melbourne currently has rebates available for commercial solar installations within the City Of Melbourne and SMF can provide 100% project finance with repayments being shared with tenants and repaid through the council’s rates structure.

Please fill out the form below if you’d like any further information and view John’s interview above or Eric's case study on why they installed solar.

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