https://www.youtube.com/watch?v=zQwcIls-osI

Congratulations everyone! The petition count has passed 3000 just in time for our budget submission to council. Open the Utube link above to watch the film we made to accompany “The Million Dollar Roof Top Solar Project” initiative.

Open the link underneath to download the contents of our advice to council concerning the merits of roof top solar.  

2015-2016 MRSC Budget Submission Final

Roof top solar report

Please contact your local councillors and urge them, on your behalf, to support

The Million Dollar Roof Top Solar Project


East Ward
Cr Ian Ellis – Mobile: 0400 025 455 iellis@mrsc.vic.gov.au
Cr Graham Hackett – Mobile: 0408 287 788 ghackett@mrsc.vic.gov.au
Cr Henry McLaughlin – Mobile: 0400 028 507 hmclaughlin@mrsc.vic.gov.au

South Ward
Cr John Letchford – Mobile: 0401 682 364 jletchford@mrsc.vic.gov.au
Cr Russell Mowatt – Mobile: 0418 531 281 rmowatt@mrsc.vic.gov.au
Cr Sally Piper – Mobile: 0400 865 543 spiper@mrsc.vic.gov.au

West Ward
Cr Jennifer Anderson – Mobile: 0408 273 670 janderson@mrsc.vic.gov.au
Cr John Connor – Mobile: 0412 870 500 jconnor@mrsc.vic.gov.au
Cr Roger Jukes – Mobile: 0400 647 445 rjukes@mrsc.vic.gov.au

                                                                                                                                                                                                                                                       

 

SOLAR REPORT FOR GISBORNE OFFICE

While it remains best practice to consider energy efficiency and energy conservation first, with dramatic reductions in cost over the last two years, solar power has become a highly cost-effective way of reducing energy bills, and emissions from energy use. We now consider solar power in parallel with energy efficiency and conservation measures, and strongly recommend solar power to clients looking to manage their energy bills

Based on the high level data provided, we can assume the average daily (24hr) summer electricity demand is approximately 550kWh. It is important to design solar assets around summer energy demand in order to minimise the amount of energy exported to the grid, for the low 8c/kWh feed in tariff, because solar output during summer will be approximately three times higher in summer than in winter.

Note: before undertaking a detailed assessment and system design, we would expect to see interval data (30min incremental energy demand). This can be easily obtained from the network company – they are required to provide this, by law, when requested. The turnaround time is typically 2-4 weeks.

Analysing the peak/off peak demand split, we can say approximately 65% of daily demand is during peak times, or 355kWh per day during summer

With six peak sun hours per day in summer, and with the safe assumption that energy demand will rise during the middle of the day, when energy use is typically high for a commercial energy user, we can say it is likely that the customer could install up to 60kW of solar power, without exporting significant quantities of energy produced to the grid. This is an important consideration in maximising the financial value of a solar system, as the feed-in tariff paid for excess solar power is low
Note: winter energy demand is typically higher than summer energy demand, giving us confidence that a solar system designed/sized based on summer demand is the best way to maximise financial performance

The following table provides a summary financial analysis based on a sensitivity analyses around key assumptions, with council paying 13c/kWh for peak energy (this excludes the green power premium being paid on 5% of energy), energy tariffs remaining at their current rate for twenty years, and no peak demand charges being reduced (note: this may occur based on solar power reducing peak demand events, but would need more detailed analysis to estimate)

Summary financial analyses, based on sensitivity around key assumptions (13c/kWh)

System size (kW)                                                                                                                                                              40                  50                    60
Installed cost                                                                                                                                                                     $60,000       $75,000          $90,000

%  exported to grid @ 8c/kWh                                                                                                                                      10%                20%               30%                         
Internal rate of return (20-year return)                                                                                                                     9.25%             8.5%               7.9%                             
NPV (discount rate of 6%) of future savings (20 years)                                                                                          $75,840        $90,000         $103,000
Payback time                                                                                                                                                                    8 years            8.5 years        9 years

Summary financial analyses, based on sensitivity around key assumptions (17c/kWh greenpower)
System size (kW)                                                                                                                                                             40                            50                         60
Installed cost                                                                                                                                                                    $60,000                $75,000               $90,000
% exported to grid @ 8c/kWh                                                                                                                                        10%                        20%                       30%
Internal rate of return (20-year return)                                                                                                                     13.8%                       12.7%                     11.6%
NPV (discount rate of 6%) of future savings (20 years)                                                                                          $100,700                $118,000             $132,000
Payback time                                                                                                                                                                    5.9 years                 6.5 years              7 years

Note:

The right solar system design, at the right price, will return energy savings that have a greater financial value than the cost of repaying a loan used to purchase those panels

Even on the worst case scenario considered of a 60kW system exporting 30% of energy products, repayments on a loan of $90,000, with a term of 6% over 12 years, would result in a cash flow positive investment for the client while the loan is paid off, and over $10,500 of energy savings straight to the bottom line once the loan is repaid.

Based on our experience managing the competitive procurement of energy solutions, we are confident the capital costs assumed above are achieve for Tier-1 components, with a minimum 10-year warranty on all parts, including the inverter, and a 5-year warranty on labour

SUMMARY

In Summary, we can expect solar power would provide attractive financial benefits to the client, particularly when considered against purchasing
greenpower.

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