Growth of business solar

Transcription

1 Growth of business solar July

2 Business solar has great potential A number of characteristics make solar PV attractive for businesses Solar generation profile works for business High daylight energy usage minimises the need for FIT s Better data provides a powerful tool for assessing energy requirements Solar power PPA s can provide electricity to SME customers at very attractive rates At Origin our PPA offering has seen a huge amount of interest within the business segment 2

3 Installed Capacity KW / month Business solar is the growth segment in the STC market Govt. sponsored feed in tariff schemes Declining Consumer volumes offset by growth in business solar Consumer solar expected to continue to decline until storage triggers next wave (around 2020) Business segment expected to supplement lower consumer sales Business Solar Consumer Solar As residential growth has subsided in recent times, business solar has shown consistent growth Three years ago business solar accounted for 4% of the monthly installed capacity in the STC market, today it s 30% 1 1: SunWiz, Origin internal analysis 3

4 There are numerous ways businesses can go solar Design DESIN & CONSTRUCT Construct DESIN Lease & CONSTRUCT PPA Description The business makes an upfront payment for the solar PV system Finance provider funds cost of system, spreading cost by term PPA provider owns system & holds operational obligations. Energy sold at low energy rate Capital Outlay Large capital outlay Average spend approximately $30K $0 or low upfront investment May be cash flow positive day one $0 investment for solar system Cash flow positive day one Payment Type Energy has been pre-paid in advance for up to 20+ years by business Recurring payment for hardware Only pay for what the system produces Performance / Risk The business owns the system, and holds the maintenance & monitoring obligations Finance provider owns system, business holds maintenance & monitoring obligations PPA provider owns system and holds maintenance and monitoring obligations In the US, 65% of commercial installations in 2015 had 3 rd party ownership. This number is forecast to rise to 74% by Locally, PPA s are a relatively new concept. At Origin, PPA s equate to 75% of our SME solar transactions 1: GTM Research s I.S. Commercial Solar Development Landscape,

5 The solar PPA is a compelling option for business 5

6 Offering solar PPAs is a complex business Whilst solar PPAs are attractive to customers, it is complex, and suppliers need a range of credentials. Energy Experts Deep understanding of current and future energy tariffs & demand charges Energy consumption analysis Strong Balance Sheet Ability to finance capital costs associated with solar costs Service the maintenance costs over term of agreement Credibility Data analysis and recommendations Electrical and structural engineering capabilities Carbon trading capabilities, STC & LGC pricing Will be around for the length of the agreement Effective asset management, billing and customer support 6

7 Origin PPA Provider Infinite Energy Expanding the PPA through select group of providers The Origin PPA provides new opportunities for our providers New with Infinite Energy, WA s largest solar installer over the past quarter Origin s Solar as a Service is an outstanding product that will provide WA businesses with access to cheap solar generated energy often cheaper than any daytime rate currently available in the WA market - Infinite Energy CEO Shane Cremin 7

8 Case study 1 - Townsville Engineering Business in QLD who service local Government, mining companies, bulk-handling facilities and have an export line in mining equipment. Considered switching to solar since 2014, but held back due to capital investment requirements. After learning of Origin s Solar as a Service, they took up solar with no capital expenditure and a long term low energy rate. After assessing the customer s energy consumption patterns, we tailored an 80kW system on a 10 year PPA, powering approximately a third of the company s energy needs. It means cheaper power and lower overheads. It makes us more competitive, which means we can hopefully win more jobs and keep people employed. Richard Parker, GM, Townsville Engineering Townville Engineering is expected to generate a third of its energy needs through solar Under a 10-year power purchase agreement, the steel component manufacturer will pay 13c a kilowatt hour compared with general business tariffs of twice that cost, while at the end of the term, the building owner will buy the system. 8

9 Case study 2 - Clonard College Clonard College is a Catholic girls secondary school in Geelong with 850 students & 110 staff Origin installed 70kW s of solar at the site, enabling the school to lock in a lower solar electricity rate for daytime usage from the solar power system Going solar has been an option in the past but with costing, it just wasn t affordable for the school, until now Clonard College Under a 15 year PPA Clonard College is estimated to save approximately $51,000 over the term of the agreement 9

10 Case study 3 - Filterfab Filterfab is based in Lawton, QLD and is part of the Andrew Group of companies which was founded in The core aim of the company remains committed to the research, development and manufacture of industrial textiles for the laundry and associated industries. Origin installed 10kW s of solar at the site, enabling the business to lock in a lower solar electricity rate for daytime usage from the solar power system As a business, the process has been seamless as it doesn t interfere with our work, and I cant see any disadvantages, only positives in moving to Solar as a Service. Filterfab Under a 15 year PPA Filterfab is estimated to save approximately $41,000 over the term of the agreement 10

11 Business solar in the ascendency PPA is a compelling proposition for business customers, but selling requires significant capabilities & investment Origin in a leading position to enter into arrangements with third parties to further promote our PPA within the market Thank you 11