Farm Power

Industrial Efficiency

Agricutural Advantage

Commercial Solar Power Systems

 

Solar Power makes perfect sense for commercial premises as the majority of power is consumed during daylight hours. In many cases, commercial solar energy can be another way to increase profitablility through savings on power expenses.

Small businesses will find that lighting, heating/air conditioning and computers make for a fairly consistent base load. Larger premises can add in plant and equipment such as cooking or refrigeration or manufacturing machinery.

Commercial solar systems are still grid tied, just larger, normally starting at 10kW, going up to several hundred kW’s. The system is designed specifically for your site based on load data which we log at your premises generally for up to 7 days. When installing a commercial solar system, it’s important to start by matching the system size to the load demand as best as possible, from there we can work with you to understand your load better and see what can be done to shift your load to better suit the production curve of the solar. Generally this will be done via ongoing monitoring of the load as well as the PV production.

Large commercvial solar systems aren’t cheap and often we find business owners feel the money would provide better returns if it was invested in their business rather than a solar system. For this reason, we offer three supply options to accommodate different commercial streams.

We are happy to work with you to establish which is going to be the best option for your business.

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ROI

Our outright purchased commercial solar systems are frequently achieving a 20% annual return on investment.

WE OFFER THREE SUPPLY OPTIONS

Purchase Outright

The most straightforward option, you pay upfront for the entire commercial solar system, any finance is arranged by you.

Advantages

  • Maximise return by not utilising a “middle man” financier
  • Obtain the best pricing by paying upfront
  • Retain control of your system as the energy market, power prices and technology changes
  • System is depreciable at circa 17% P.A. which provides a good tax credit

Disadvantages

  • Up front capital expense
  • Finance costs if borrowing is required
  • Opportunity cost of what else might be achieved if the capital was invested elsewhere

Lease

The Commercial Solar PV system is funded via our Lease company and a contract is entered into in the same way you would lease a vehicle.

The term and monthly payments are negotiable as is the option to lease to buy, however typically we work on a 10-year term with a further 1 x 10 year right of renewal, based on the system having an expected life expectancy exceeding 40 years. Insurance and maintenance is paid for by the customer.

Advantages

  • No upfront capital cost
  • The lease is a fixed cost every month, not affected by power production or usage
  • Lease payments are a deductible expense just like your monthly power bill
  • You effectively lock in or hedge the cost of a portion of your power for the term of the lease

Disadvantages

  • You do not retain ownership of the asset
  • Overall savings will never equal that of an outright purchase
  • You are committed to the installed technology for the term of the lease

Power Purchase Agreement (PPA)

A power purchase agreement is where the commercial solar system is installed on a property or building but does not belong to the occupier, nor does the occupier have any control over it.

The power produced by the commercial solar system is sold to the occupier of the property, usually at a reduced rate compared to what their existing retailer is charging. There are several ways of invoicing each month, which are negotiable to suit, but essentially a PPA is a contract to purchase power from one supplier at an agreed rate, usually with price increases built in, for a long term.

Advantages

  • No upfront capital cost
  • PPA power bill is a deductible expense just like your monthly power bill
  • You effectively lock in or hedge the cost of a portion of your power
  • Maintenance and insurance costs are borne by the supplier

Disadvantages

  • You are paying a premium to cover the cost of administering the PPA
  • Depending on the contract entered into, the price of power produced may go up
  • You are locked in regardless of what happens to the energy industry
  • You have no control over the asset
  • Regardless of what energy saving measures you initiate, you still pay per kWh of power produced / used so will likely not maximise savings or self-generated consumption
  • What happens in the event the supplier closes down or liquidates?

Some of our Commercial Installation examples

Braemar Lodge

Dairy Farm Winton

Dairy Farm, Canterbury

Implement shed array, Canterbury

Felton Rd Winery

Dairy Farm, Canterbury

Example—Actual Data

This graph shows actual results on a dairy farm we installed in Canterbury.

Light orange (left) was our prediction, Dark orange & lined (right) was actual—averaging just above predicted.

Ask us how solar can work for your business

~Call us   0800 SUNERGY