Do you own a business or planning to open one in Ballarat or any part of Victoria? Find out if solar photovoltaic (PV) will suit you. The economics of solar PV system installation depends on several factors aside from your load profile. Your load profile is your typical consumption of electricity in a day. Understanding how you consume energy is the initial step in determining if the system is a viable investment. An accurate analysis of the pattern of your energy consumption will be compared to the energy generated by the system. Your accredited installer’s designer should provide this for you during the designing stage and this is highly important in forming the basis of your ROI.
Consumption and Sizing
The financial benefit of exporting energy into the mains grid is insignificant, so you can receive larger benefit through consumption, meaning, you will consume less electricity at a higher cost. It is important that your system match your consumption. Various sizing alternatives are available for commercial installation in Ballarat, choose one that suits your load profile and facility and ask about the projected return of every alternative.
Understanding the Arrangement
It is important for you to understand the arrangement with your electricity retailer before installing a solar power system. Learn what tariff you are on, the peak and off-peak rates and time, term and expiration of contract, consumption clause and penalties and the changes in the tariff once the system is installed. Your chosen installer should help you in this process because you need a modeling to negotiate with your electricity retailer. A written confirmation from the retailer is useful in documenting tariff changes under the new arrangement.
Return on Investment
Attractive return on investment is offered by solar PV systems. You can compare the internal rate of return with your other investment like putting the money in a bank to make an informed decision. To make the most of your investment, determine its lifetime cost and energy generated. Compare this with how much you would spend using conventional energy on the same period. Consider taxation and depreciation for investing in commercial solar power to calculate your return. An expert designer can analyze your tariffs and usage and propose a system that optimizes your ROI. You can also ask your financial manager to calculate the internal rate of return, potentials in taxation and depreciation as seen from the designer’s proposal.
You can sell the excess energy your system generates, but you have to consider the financial advantages. The rate for power sold back into the grid depends on your electricity retailer. You also need to consider tax implications of income you will receive in order to subsidize capital costs or revenue from feed-in tariff. If the system becomes a depreciable asset, any income may be taxable. If you business is registered for Goods and Services Tax (GST), you are likely to be liable for GST on exported energy.
A small business that consumes 50,000-kilowatt hours a year and installs a 15-kilowatt solar PV system can displace 33% of its electricity use on average. If you decide to purchase the system, you can take advantage of financial assistance options offered by the Australian government. Checking solar quotes from reputable companies is only a trivial task. Consider having a checklist before purchasing solar PV for your business. This will serve as your guide so you won’t go wrong with your investment. Diligence checks on your installer and supplier should be taken, besides scrutinizing the contract, financial calculations, grid connection and support. If it’s any consolation, comparing solar quotes in Ballarat, Victoria can already be done with the help of the Internet.