As a large customer, the building owner will be entitled to lower electricity rates than the individual tenants and can on-sell at a higher rate than what the tentant would normally pay to the retailer. The total electricity consumption of a building (tenants inclusive) is purchased by the owner of the building at a single metering point. From that point, the electricity is on-sold to individual tenants with the tenant’s electricity metered through a private meter. Tenant metering and billing is administered by Clean Energy Corporation Australia channel partners.
Benefits for building owners
Creation of a new revenue stream with immediate windfall.
Benefits for tenants
Access to lower electricity rates that they would otherwise not be entitled to.
Solar systems impact on a client’s taxation situation a number of ways by looking into the decline in value of the capital cost of the system, also the offset of electricity assists and improves business cash flow. Solar systems can be classed as plant equipment and therefore have variable depreciation and capital cost deductions associated.*
Benefits of solar in conjunction with embedded networks
A solar system can contribute up to 30% of the electricity demanded by a typical commercial building. In the case of utilising an embedded network, the offset value of electricity is higher due to the higher rate that the building owner can charge to the tenant compared to the low rate that they would normally pay.