Any business that owns its own premises or has a long lease in place, will instantly start to save money, if it invests in solar power generation. It’s as simple as that. It's only a matter of how large a system you will need and the payback period to fund the system. No emotion is involved, it’s quite simply a commercial business decision that makes a whole lot of sense.
This is how it works
The business makes a one off investment either in cash reserves or by way of a loan. With that investment True North Solar will source and install the best available system to a bespoke designed system for that specific business. On final completion, we turn the system on and the business starts to save money at a phenomenal rate of return greater than 25%.
He’s an actual example. The business is a child day care centre, it operates from 6.30am to 6.00pm five days a week. They have large air conditioning needs, fridges, lights, server room and other general appliances. Their power bill ranges from $650 to $1400 per month.
Solar Panels on roofTrue North Solar designed a 16.5kW system using a SolarMax 15MT2 three-phase inverter along with 60 of our high efficiency LG solar panels. As part of the service, we applied to Ergon for the usual approvals, which was straightforward and once approved, we got underway with installation. Once installed, we took care of the government incentive scheme paperwork and then trained their management on how to monitor the system.
The system saves this business close to 50% of their power bill each year. We were able to generate savings of between $5,000 and $6,000 per year on an investment of $21,500. That’s a simple rate of return of at least 25% in the first year – try getting that from your bank!
The main benefits are:
- Guaranteed to save the business money from day one
- The Government are still providing up to $20,000 in incentive payments for forward thinking businesses
- Solar is a positive cash flow investment
- Solar investment enjoys an increasing return over time
- Access tax and depreciation benefits
- Builds your sustainability and environmental reputation
Do the math… even if you need a very large system and operate 24/7, you will be certain to be making a solid contribution to overheads during daylight hours. Even if the savings are only 35% of your $50,000 power bill, that’s a saving of $17,500 each year, before tax and deprecation.
A typical business will be cash follow neutral for about three years and then entirely cash flow positive henceforth into the future. Don’t take our work for it, ask your accountant to call us and we will develop a business case for him to review. If it doesn’t make commercial sense, we will pay the accountant for his time. You have nothing to lose other than a lost opportunity to lower your overheads and take back some control.