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Benefits of Solar Power by The Renewal Energy Action Company

Benefits of Commercial Solar Power Systems

Businesses looking at solar already understand their responsibilities to the environment, their social commitment to the community they operate in and around and the impact solar can have to the economic performance of the organisation.

Unfortunately in this ever increasing competitive environment we operate in, most decisions must also be supported by some simple economics. This fact is true; Solar makes financial sense, and over time makes a substantial contribution to the organisations cash flow and bottom line, whilst controlling the impact of rising costs in electricity.

The Renewable Energy Co has produced a Solar Financial Maximiser Model™ It is a detailed calculation tool that gives us the "figures that count" when determining the financial benefits of your system.

Some typical scenarios we come across are as follows...

Scenario 1

A business operator that owns or is buying the premises. The Solar System is installed with the view to eliminating or at least minimising the draw of power from the grid. The value of the investment is measured in the money saved in overheads and increases to cash flow on a day to day basis. The business can market itself as a clean green renewable energy user.

Scenario 2

The premises are owned by the business operator through another entity. For example: Family Trust, Holding Co, Property Trust, etc. This scenario enables the entity which owns the building to invest in the Solar System. The power then generated by the Solar System is sold to the operating entity, and the funds generated by the sale of the power will show the property owner a substantial return on investment and provide opportunity for depreciation and other tax related benefits.

Scenario 3

The property owner installs a Solar Power System on the roof of the commercial property as a capital improvement. The power capacity of the system and the tariff rate at which it is supplied to the current or future tenant is locked in to provide the tenant with "capped price power" to the level of output of the Solar System. This in turn provides the landlord with a recurring income through the additional rent payable by the tenant. Once the payback period is reached the cost of power generation to the landlord is NIL. Return on investment is substantial.

The Scenarios outlined above are examples only.

Please contact us to arrange a further discussion. We will customise a solution for your commercial application through our Solar Financial Maximiser Model™ that will show you excellent returns and an ongoing revenue stream.

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