By leveraging these benefits, commercial building owners can significantly enhance the long-term value and appeal of their assets.
The benefits of up-sizing to modernise solar energy use
Traditional advice from solar consultants suggests sizing solar installations to meet the current needs of tenants, sometimes including a battery to minimise costs and limit low grid export tariffs.
However, this method often creates issues, as the required on-site tariff for profitability is often too high for tenants, and it doesn’t allow for future growth, like adding EV charging stations, or provide revenue stability if the building is vacant.
A new approach, called up-sizing, addresses these problems by installing more solar capacity than currently needed and selling the excess energy.
This strategy aligns incentives between building owners and tenants, increases revenue, and improves on-site tariffs.
Additionally, it generates extra energy, which future-proofs the property for expansion and potential tenant needs.
How export tariffs for solar energy can help ensure revenue stability
However, for up-sized solar projects to be profitable, simply selling excess energy to the grid at low, volatile rates isn’t enough.
Commercial building owners need a guaranteed, fixed, long-term export tariff to ensure revenue stability, even amid market volatility or tenant vacancies.
This certainty allows owners to offer tenants competitive rates, saving them money and strengthening relationships.
Fixed tariffs can be secured by selling to a network of reliable energy buyers, not just the grid.
These buyers might include other tenants with insufficient solar capacity, buildings unsuitable for solar, or large consumers like data centres.
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