Here’s an update on our Plan’s energy saving initiatives.
Whilst I’m an advocate for alternate energy and energy saving from a philosophical perspective, I’m afraid that based upon the energy savings made by our Owners Corporation from the back-to-the-grid (gross) solar array that it installed almost 3 years ago under the then Federal and State Government rebate schemes, and the replacement of most common property security lighting with 13W LED fittings, that approach is not so attractive when all things are rationally considered.
The capital cost of the solar system after rebates, including some upgrades to our common meter room opportunistically demanded by our electricity wholesaler was $8,500, and the cost of the LED fittings totalled $1,550 (installed).
The monetary return from our feed-in to the grid (gross) at the now defunct rate of $0.60/kWh has averaged $1,500 over the past 3 years, and as best as I can estimate from recent and historical records the LEDs have saved us about $800.00 over that same period.
Simplistically, that’s a 5.5 year pay-back on the solar array, and possibly the achievement of a $1,500 “profit” before the expiry of the NSW Solar Bonus Scheme in December 2016 reduces our return by 90% and renders to whole thing fiscally pear-shaped, and the LED’s could pay for themselves in about the same timeframe, by which time they’ll no doubt require replacement “bulbs”.
Our O/C has done the right thing from all perspectives and has achieved some benefits, but for any other Plans (in NSW) who have considered anything similar since 1 July 2012 when the first cut to the rebate commenced or are currently doing so, I’m afraid that from my perspective (as Secretary & Treasurer) the numbers just don’t add up from a monetary perspective.
OK – I appreciate that the costs of solar systems have come down by almost the exact amount of the Government Subsidies removed (funny thing that), and that electricity costs have risen (plateaued?), but the feed-in tariffs have also reduced dramatically; hence my conclusion.
Over to you Peter 