Solar-power your independent supermarket the EASY way
WIN customers and CUT costs
WITHOUT doing more work
or crippling your cash flow
It’s never been easier to get good commercial solar
Energy costs are skyrocketing, and solar energy is looking a better deal every day.
But the selection process, the installation hassle, the overheads, and the cash flow consequences of making a bad solar purchasing decision has been a major barrier for most independent supermarkets.
However, recent developments in both solar technology and solar financing products have created new opportunities for those who want maximum cost benefits for minimum hassle.
The right solar can make a big $$$ difference
There are growing benefits to commercial solar for supermarkets, especially in today’s crazy energy market.
- Your energy costs will likely go down and stay down. (After all, you don’t pay anything for the sun to shine – the costs are equipment costs.)
- If you opt for a customer-friendly carpark installation, the increased comfort and convenience can win you extra customers, and extra sales.
- You’ll also likely be a hero to your family, your customers and your community because you’ve taken positive action on a major environmental issue.
However, paying cash or using traditional purchase/finance options can reduce – and sometimes eliminate savings.
There are a whole range of challenges in going solar
There are several things that the average solar salesperson out to get you to “buy solar” probably WON’T tell you about solar for your supermarket:
- Working out what to buy is complicated. There’s good solar gear – and ALSO a lot of second-rate equipment on the market. Panels, batteries and inverters need to be a matched set to get top performance.
- To get the most out of your solar/battery installation, you’ll need to get it a) installed correctly and b) maintained regularly. That means ongoing fees, and your operations people may need an extra skill set to make sure you get the benefits.
- If you buy and install solar plant and equipment, you lose an ongoing business expense deduction that may NOT offset by depreciation savings.
- To buy and install solar plant and equipment, you have to take scarce working capital out of your business, making your day to day cash flow even more challenging.
- The work involved in getting council approval and grid connection for your solar installation has potential to be both complicated and time-consuming. <<confirm??>>
No wonder there are so few solar supermarkets – but that’s starting to change.
The smart solution – a commercial Power Purchase Agreement
With the availability of robust solar technology larger, more powerful solar arrays are now able to be installed – today’s arrays can deliver guarantees of production capacity.
Do today’s installations come with integrated battery storage??
It’s not just the technology that’s improved – the structures for purchasing solar have also increased.
Commercial Power Purchase Agreements (PPAs) are increasingly available and affordable for mid-size businesses such as independent supermarkets.
A PPA for solar energy is similar to a novated lease for your company car – and just about as simple.
You negotiate an agreed monthly? payment for renewable energy generated from equipment installed and maintained for a contracted period (5 – 10 years??) . The equipment is purchased and operated by an expert renewables company who:
- manages the installation on your site – including approvals and connections
- installs the equipment
- maintains and repairs the equipment to ensure optimal performance
You get cheaper energy, protection from grid price fluctuations, and continue to have a deductible operating expense – without putting an extra, expensive asset on your books.
?Like a car lease, what happens at the end of the agreement is optional.
The nitty gritty of commercial solar PPAs
A commercial solar Power Purchase Agreement uses a purely financial arrangement where a commercial organisation (such as an independent supermarket) agrees to purchase all the power produced by the installed solar system at an agreed price per kilowatt.
This price is typically 45% to 70% below the current grid price – and will stay stable for the life of the agreement.
SAMPLE PPA COSTS
In this example, we use a 30kW solar system that – if purchased – would be invoiced at $40,000 (including GST).
** This table does NOT take into account the significant savings in electricity.
5YR CASH OUTFLOW AFTER TAX
Power isn’t going to get cheaper any time soon
Australian businesses now pay global prices for energy, and are increasingly vulnerable to international energy price and supply fluctuations.
Power prices will not only be impacted by international disruptions. Ongoing power station closures within Australia mean that the National Energy Market is seeing an increase in forward electricity prices.
Increased supply disruptions are also expected as a result of the ageing Australian grid, further impacting consumer-facing businesses like supermarkets.
Power costs hit bottom lines directly
Increases in energy input costs go directly to the bottom line – and many Australian business are considering whether they will be able to continue to operate economically at current (and future) grid based electricity prices.
Solar power your supermarket today
Today’s commercial solar PPAs are designed to deliver a service which provides a guarantee of delivery at least as robust as the grid AND at a commercially viable and predictable price point.
You’re more attractive to your customers because you’re visibly more sustainable AND offer them a better experience.
Your operational risks are reduced because you have dedicated local power for your store.
Your accounting staff will be happy as your operating costs stabilise and your available working capital isn’t impacted.
If you want cheaper, more reliable power – without the – then talk to us today