Right now Victoria’s energy market is in turmoil – not only will the closure of Hazelwood result in soaring prices, but Union unrest at Loy Yang’s coal mine suggests that there will be continuing threats to Victoria’s baseload power supply.
The problems for businesses are:
A) They have zero control over the soaring wholesale cost of power; and
B) The return on a power bill is and will always be NOTHING.
To illustrate how complex this energy crisis has gotten, parties able to influence the cost of power include:
- Private foreign-owned power generators
- State Governments
- Network distributors
- Energy retailers
This is bad news for large energy users, who have already suffered major bill shock in the wake of a 70% increase in the wholesale cost of power in the past 12 months.
Source: ASX, Increasing cost of wholesale power
Solar is now the largest source of stability for business owners who don’t want to be penalised for energy market chaos.
Businesses with day time operations are typically able to offset 50-60% of their peak energy usage, meaning a consistent flow of electricity can be secured at a set rate in the short term, with free day time power in the medium to long term.
In a competitive manufacturing environment, a business that saves $25,000 on peak electricity can use that excess cash flow to gain a competitive edge over its rivals – especially if that same amount of energy will cost $35,000 in 18 months’ time.
Choice Energy’s solar clients reinvest their electricity savings on inventory, payroll, equipment upgrades, etc. while the competition have to budget for double digit increases every year.
The days of CPI electricity price increases disappeared with the carbon tax of 2012, and businesses that have adopted solar are cashing in big time on their competition.
To see if solar stacks up for your business, get in touch with us today – or explore our full range of solar case studies.