Australian manufacturers remain at the mercy of energy companies, with inordinate electricity prices a significant influencer on the bottom line.
While in some instances smart planning and monitoring can help reduce energy consumption, the relative output of a manufacturer is tied so closely to energy usage that any significant reduction is not feasible. Companies need to find another alternative.
Abroad, manufacturers in countries including Germany, Japan and the USA are increasingly utilising alternative energy sources to offset rising costs, and help contribute to a more sustainable future, with solar power remaining the most attractive proposition of all the alternative choices.
But while solar power has long been touted as an alternative that can help reduce energy bills as well as the environmental footprint, Australian companies have been cautious in acceptance.
Despite knowing that a solar photovoltaic (PV) system can lower energy bills and will eventually pay for itself, the initial capital required to purchase and install the system remains a hurdle for many.
Fortunately, other options are now available: solar leasing and solar power purchase agreements (PPAs) allow companies to reap the financial and environmental benefits of solar energy without the large upfront costs:
Solar leasing: With solar leasing a supplier installs a solar PV system and fixed monthly repayments are made on the system, commonly for a period of 10 years.
Solar PPA: A solar PPA is an agreement where a solar company pays for the installation of a PV system and a company the purchases the power it generates at a cheaper rate that what would be charged by an energy retailer. The solar company is effectively leasing the roof space for a set period of time, so they retain ownership of the system and the responsibility for any maintenance costs.
The key benefits of lease and PPA agreements include:
- No up-front costs for system installation
- Responsibility for maintaining the system lies with the solar company
- Savings on energy bills are realised immediately
- With a PPA the rate is lower than that of a traditional energy provider, with companies protected from potential price rises over the term of the contract
K2 Solar Australia offers solar leasing for up to 10 years with fixed monthly payments, as well as PPA agreements tailored to a company’s needs to develop the most cost effective system to ensure reliability, productivity, financial performance and environmental benefits.
To find out more about solar plans download this whitepaper ‘How Australian Manufacturers can Tackle Rising Energy Costs with a Solar Power Purchase Agreement’
Or visit K2 Solar at www.k2solar.com.au