Read our latest article by Luigi Taddeo, our Energy Efficiency Solutions Manager, on why many businesses are finding budget for solar.
We know one of the best ways to hedge against energy market volatility is to go solar.
Incorporating solar power in your energy efficiency mix is a good risk mitigation strategy against market fluctuations, particularly for businesses with substantial and costly energy requirements. The ongoing uncertainty in electricity prices is challenging energy users and hindering business’ ability to accurately budget and forecast into the future.
Why now?
To have a solar system installed by the end of the year, you’ll need to start the procurement process now. The end of 2022 saw a surge in demand for commercial solar as businesses sought to reduce their increasing electricity costs. With the surge easing, solar retailers are now focused on securing larger projects and filling their project pipelines for the rest of the year, indicating an eagerness to win contracts.
How to buy solar?
Sustainable Energy Solutions’ solar experts are experienced in system design and procurement for small-scale and large-scale solar projects. Below is our 3-stage approach to help your business get connected.
✔️ SOLAR ASSESSMENT
Using your consumption profile, metering and invoices, and satellite imagery, our team of experts will model a range of potential solar systems for your site(s). This will provide you with an accurate projection of costs and benefits and ROI for your business.
✔️ PROCUREMENT
Once you’ve selected your preferred system size, we will request initial offers from leading suppliers using our dynamic solar platform. In some cases, we will receive offers from up to 10 suppliers. Suppliers are scored based on price, quality of materials, workmanship, warranty and experience in delivering similar projects. During our initial offers presentation, you will have transparency in comparing all offers and shortlisting suppliers for a final round of tendering.
✔️ CONTRACT, IMPLEMENT & MANAGE
Upon selecting a winning supplier, our experts will review the contract terms and conditions and commence project planning. We will provide project and contract management during the installation and ensure real-time monitoring of your system is installed and able to be managed for optimal system performance. With our team managing the process from end-to-end, you can be assured that your new solar system is being installed and performing to the highest standard, with live data and energy savings visible from our app in the palm of your hand.
Installing solar power will minimise your reliance on the grid, reduce your exposure to market volatility and your carbon footprint.
Low operation and maintenance costs of solar means simpler and surer budgeting for your energy costs into the future. For large systems (above 100kW), the production of Large-scale Generation Certificates (LGCs) means businesses can choose to either sell their created LGCs and get a revenue, or claim their respective environmental benefits – until the end of the government scheme in 2030. Furthermore, Power Purchase Agreements (PPAs) offer an effective way to get started with solar with no upfront costs, with flexible terms of between 1 and 25 years.
2023 prices update
Due to this eagerness to win work – we are seeing more competitive pricing as a result. Based on systems offered through our partner platform in Q1 2023, we saw a 1% decrease in price for 99kW rooftop systems, and a 10% decrease in price for rooftop systems sized greater than 100kW when compared with the previous quarter.
Other factors impacting solar system pricing in Australia in favour of cheaper system costs include: raw material prices which have continued a downward trend since peaking in May last year; freight charges which have also continued to fall since peaking mid 2022; and the AUD exchange rate which has been fairly consistent, sitting close to 0.67-0.68 AUD/USD.
⏰ With the clock ticking, let’s talk solar today.
Chat to our team of experts by filling out our contact form or calling us on (02) 9371 4153.
*Disclaimer: This article is general information only and does not constitute financial advice. Electricity and gas commodities are volatile markets and prices vary daily.
