James had offered to meet several weeks ago so Neil took up his offer with the following agenda: to clarify the basis of an offer to our fellow owners that spells out (a) each item of cost involved in the setting up of our first stage embedded network, (b) the most advantageous/feasible formula for financing it with associated pay-back period, (c) how its billing system would work including relative returns to owners/occupiers c.f. to the Body Corporate, (d) a first-cut description of timing and costs of a second stage.
Initial capital costs $
Solar Panels 46K [being $69 – $23 Small Scale Certificates]
Upgrades required 36K [cabinets, CT Chamber, new MDB] for Embedded Network could be $3k less
Smart Metering <$5K
Setting up Embedded Network $9K [meetings with Owners to gain consent, Negotiation with AEMO, etc]
EN Running Costs
$15/customer/month= $270×12=$3240 pa
Annual profit $7-8K [p.11 of Tender – Est Annual Benefit Table]
James thinks feed-in tariff revenue would be negligible
Potential sources of funding:
Sydney Council Grant $25K
Strata Capital Fund $20K [cost of new MDB]
Borrow from Strata $20K [repaid from annual profit over 3 years]
Shortfall $96-65K=$31K [could be funded via <$2K Owners’ levy, i.e., $430/quarter for 1 year]
Potential benefits to Owners/customers
James notes the following Preliminary Owner Benefits to consider:
- Lower than best in market electricity prices
- Value of customer receiving clean energy without paying a premium
- Value of generating clean energy
- Property Value increase
- Reduces tenant electricity rates to below ‘best in market’
- Strata law makes Individual owners unable to incorporate solar independently
- Ability to view and manage consumption (through the incorporation of smart metering).
- Potential for Battery storage and EV Charging in future.
We didn’t get to (c) and (d) of my agenda but we discussed the possible process from here. I asked whether it would be feasible for him and the SolarPro staff to contribute to a series of information sessions to brief the owners and tenants on the proposed technology and its installation, the operation of the embedded network, and the billing and customer service arrangements. James affirmed that this would be feasible, noting that he and his partners see this as a very important breakthrough project that they want to support. In addition to this information sharing process, AEMO regulations require that James conduct meetings to enable potential customers to each informed consent to the retrofitting of an embedded network.