After an energy-efficient Solar panel upgrade, an inner-city landlord reduced their energy usage, with over $13,000 saved per year.
This project had many advantages including the large saw-tooth roof, with minimal overshadowing buildings nearby, which offered a great opportunity to maximise the number of solar panels installed.
In addition to the financial benefits from lowering energy use, the tenant has dramatically reduced their carbon footprint. The landlord has improved the value of the commercial premises by installing solar panels and has made their property much more attractive to future tenants.
The factory outlet roof in inner-city Melbourne offered enough space for 210 x 450W solar panels to be installed, equating to a 94.5 kW system. This allows the tenant to produce approximately 120 MWh of energy per year.
This system has an expected 20 year lifetime, which will deliver some $260,000 savings during that time.
This project was a huge success for the tenant in their mission to use 100% renewable electricity in their facilities by 2021. Ecovantage was thrilled to help a global brand that is making progressive steps to reduce their carbon footprint.
This project will significantly reduce the out of pocket expenses for the tenant, including overheads, saving over $13,000 per year on electricity bills.
In order to support the investment in solar, the tenant agreed to pay 75% of the actual savings to the landlord. This is an absolute win-win situation for both parties.
The tenant wins a guaranteed saving of 25% on electricity costs for agreeing to the install.
The landlord wins by improving the long-term value and attractiveness of their asset. They can also claim the cost of the installation on tax and gain government facilitated subsidies.
With the ongoing payments by the tenant, the subsidies and the tax benefits, they can expect a return on investment in about 4 years. If a loan was required, the payments from the tenant would be greater than the repayments on the loan.
The biggest win of all is that the building’s reliance on grid energy will be cut by 87%, and the business’ annual carbon emissions will be reduced by 119 tonnes. This is equivalent to 25 cars driven each year.
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