“Prices have stayed high in part because network businesses – which carry power through poles and wires from the generator to the home – have spent billions of dollars on infrastructure that falling consumption has made redundant. A nasty correction is coming and the question is who will pay for it – power companies, governments or consumers again?” – Tony Wood – Energy Program Director – Grattan Institute
The Australian agribusiness and viticulture industry of Australia makes up 4% of industry usage derived from general electricity such (as lighting and appliances), fuel (for machinery and vehicles) and heating/cooling. The rising costs associated with electricity is a significant concern for agribusinesses across Australia. Solar PV is becoming more prevalent with business’ in Australia looking to save on their operating expenses budgets with a rising rate of electricity to combat.
Energy consumption demands in Agribusiness
Solar is a product designed to reduce energy costs by producing the appropriate amount of electricity to match a business’ consistent energy consumption profile. Agribusiness often deal with a range of instruments that consume significant energy costs – conveyer belts, plant equipment, machinery, bore pumps, cooling/air-conditioning, refrigeration and lighting. A Solar PV solution can pay itself off of between 4 – 8 years and have a lifespan of 25 years; highlighting the benefits for a business mature enough to plan for the future.
Why Electricity pricing is rising
Network tariffs vary across network providers and therefore different prices occur depending on location (depreciation of grid & operating costs), historical usage of operator and different peak usage figures. Most of that is going towards paying off the $45 billion network companies have spent on updating our poles and wires over the last five years.
Solar as a service
There are a number of different variables in the agribusiness industry that directly affect solar system sizing, and the best type of solar product for the facility. Variables such as the business type; ie. farming, rural business, meat & livestock, viticulture, all have different business needs coupled with business operating hours, energy consumption demands all affect the motivations to go solar. This is why Clean Energy Corporation Australia looks at solar as-a-service to our agribusiness clients, to manage the system, maintenance and optimise the system, tailored to the business needs and case.