Part 1 of our Renewable Energy for Commercial Businesses and Landlords series covered options specific to businesses who own the buildings they occupy. In the second part of our series, Richard Turner, Founder and Director of Innovation at ZEN Energy will be helping commercial tenants and their landlords to manage their energy position and combat increasing costs.
Across the country, business operators are continually looking for new ways to manage their energy position as new commercial electricity contracts come through at virtually double their existing rates. It can seem like commercial tenants don’t have the opportunities to take advantage of renewable energy that owner-occupier businesses do, but luckily, there are options available to suit almost every business.
Are renewable energy options accessible to businesses operating as tenants?
If your business operates as a tenant of a commercial building, opportunities to use solar energy to decrease operation costs still exist. While you and your landlord will need to agree on how and where solar will be installed as well as who will pay for the solar energy system, the fundamental benefits that are available to owner-occupier businesses also apply to businesses as tenants. With the potential to consume energy at less than a quarter of the cost of traditional grid electricity, it’s worth having the discussion with your landlord.
If your tenure as a tenant is long enough to gain a payback on a solar energy system, you may find that there are benefits of solar for both your business and your landlord. For example, the combination of a 10-year tenure and a commercial solar energy system that pays itself back in 7 years or less offers:
- An average cost of energy that is significantly lower than standard commercial energy contract rates over the period of your tenure
- An asset for your landlord that reduces the cost of electricity for any future tenants, making the building more appealing to future tenants on your departure
- A potential additional revenue stream for the landlord from selling solar energy
The benefits for landlords in a renewable energy investment
While commercial landlords have historically generated income through rent, the opportunity now exists for those same landlords to create a new revenue stream by selling the solar energy they produce on their roof to tenants. With the right technology and agreements in place, landlords can offer energy at a lower cost than the tenant can access from the grid.
In many cases this “benefit sharing” agreement between a landlord and tenant results in the tenant decreasing their energy consumption costs, and the landlord gaining a competitive advantage on their property to attract prospective tenants and lock in longer tenures. Once the system is paid off, the landlord can also make a healthy margin on any solar electricity sold to the tenant, effectively increasing the return yield of the building for years into the future.
If you are a landlord and are interested in creating a new revenue stream by selling solar energy to your tenants, speak to ZEN Energy about how you can make this a reality. Tenants can also initiate this solar energy option by starting a conversation with their landlord about the benefits of cheaper electricity for them and a new income stream for their landlord, before then approaching ZEN.
Why you should choose ZEN to be your renewable energy provider
ZEN Energy is at the forefront of solar energy and storage technologies, offering our services not only to landlords and business owners, but also assisting you to find workable solutions that benefit both parties.
Choosing a renewable energy provider is a long term choice, as you’re choosing an energy partner for the life of the system. A company that has a long history of professional service to the industry is more likely to be available in 2, 5 or 10 years to help you with servicing, maintenance and updates.
It is critical to understand that across the solar and renewable energy industry, the adage of “you get what you pay for” is truer than ever. You should choose a partner that has a full technology pathway from commercial solar energy and commercial energy storage through to demand management and a balance of power supply capability to ensure you’re getting the best possible system for your needs.
For every commercial client, ZEN offers:
QUALITY INSTALLATION, PRODUCTS, AND COMPONENTS
ZEN Energy offers not only quality products and world leading components, but also quality installation. All ZEN systems are expertly installed by Clean Energy Council accredited electricians for efficiency and reliability.
A SOLAR ENERGY SOLUTION TAILORED TO YOUR BUSINESS
ZEN Energy asks the questions others might not to make sure the solar energy solution we design for you is engineered to be fit for purpose, technically sound, and in line with your goals. Not only will your commercial energy solution be designed specifically for your site, it will also be grounded in technical knowledge, ZEN’s engineering capacity, and our years of experience across Australia.
CONSULTANTS WHO CARE ABOUT YOUR SUCCESS
Through understanding your existing and forecasted energy consumption patterns, ZEN designs, installs, commissions, and maintains a tailored solution for your business. We pride ourselves on working transparently with our customers from feasibility through to project delivery. Our business is to focus on your energy, so your energy can focus on your business.
The final blog in our Renewable Energy for Commercial Businesses series explores how smart commercial energy storage can be used to unlock the true potential of stored energy. Stay tuned!
To find out how your business could benefit from solar energy storage and management