Unlock new value from your property

Transcription

1 Unlock new value from your property W E S T E R N A U S T R A L I A

2 Unlock the potential of your property Today a change in the energy market provides property owners, investors and managers with the opportunity to unlock additional value from their property. Enigin, as a preferred supplier of energy to local government and approved Clean Energy Council Retailer, brings this opportunity to the property sector through one of three approaches. Each of these approaches unlocks new value for your property, either through: 1. New revenue - long-term and recurring - by leasing your unused roof space or land for Enigin to supply tenants with renewable electricity at no more than their current costs; 2. Lower costs - up to 30% savings on the cost of electricity supplied by Enigin from on-site renewable generation; or 3. Free electricity years of free renewable energy by purchasing an on-site solar system. In each of the above options your property will also increase its NABERS points. An increased NABERS rating is shown to increase property values, rental income and lower vacancy rates in tenanted properties. The following pages provide real-life examples of how Enigin is unlocking new value for property owners, investors and managers using each of the above approaches. It outlines the benefits and risks and answers frequently asked questions. This is an exciting and proven innovation in the market. Discover if there is additional value that can be unlocked from your property. Contact our team of experts at Enigin now to receive a site-specific assessment. Each day s delay leaves value on the table - a real cost to you and stakeholders in your property. W E S T E R N A U S T R A L I A

3 1 Lease us your unused roof Enigin will lease roof space to install solar and sell electricity: a. Back to the Landlord who passes on the electricity charges to tenants at cost or with a profit margin as allowable under the lease; or b. Directly to tenants at no more than they pay for it from the grid Suburban Perth shopping centre >$500K revenue over lease term 230 kw solar supplying renewable energy for 30% of the site s forecast demand No expenditure or risk for Landlord Who will benefit? Commercial, retail, tourism and industrial property owners including: Government (Federal/State/Local) corporations & agencies Blue chip (superannuation Funds/REIT/ ASX listed) Private property syndicates or portfolio owners/managers Property owners with tenants on longterm (8yr+) leases What are the benefits? New revenue - long term and recurring A no-cost increase to NABERS points & reduced carbon footprint No capital or operational cost, meaning no risk or debt for a non-core asset Flexibility to buy & own at any time at the ATO depreciated value Commercial food processing factory in Perth s eastern suburbs $365K revenue over lease term 150 kw solar supplying renewable energy for 50% of the site s electricity needs No expenditure or risk for Landlord

4 2 Save up to 30% with onsite solar Save up to 30% on electricity costs now and into the future by buying it from onsite solar Co-educational private college in Perth s southern suburbs > $2M forecast savings over a 25 year supply agreement 460 kw solar supplying renewable energy for 27% of site electricity demand 667,530 kg CO2-e emissions p.a. No landlord expenditure or risk Who will benefit? Owner-occupiers or managers of commercial, tourism, retail, education, health and industrial property: Government (Federal/State/Local) corporations & agencies Blue chip (superannuation Funds/ REIT/ASX listed) Not-for-profit organisations What are the benefits? Lower electricity costs Electricity price security: budget with surety and reduced exposure to increasing electricity prices At no cost instantly increase the NABERS points of the property and reduce its carbon footprint No capital or operational cost, meaning no risk or debt for a non-core asset Flexibility to buy at any time at the ATO depreciated value Five retirement villages across Perth $3.96M saved over a 25 year supply agreement 470 kw of solar supplying between 17-21% of each site s electricity demand No landlord expenditure or risk

5 3 Free electricity for 25+ years Purchase a quality solar system to generate free electricity for 25+ years to: a. Sell to tenants: at a significant profit (after capital costs achieving a ~4 to 5yr ROI) to increase attractiveness of the property via reduced outgoings; or b. Save $ 000 in electricity costs. Perth CBD commercial office building >$300K additional revenue over asset life - effective ROI at today s price is < 3 years 30 kw solar supplying renewable energy for 7% of the building s electricity needs Higher NABERS points Who will benefit? All property owners & managers who are willing and able to: a. Invest the necessary capital (~4 to 5yr ROI) or obtain finance; b. Manage the asset and incur operating costs including insurance, maintenance, repairs, replacement and performance management; and c. Trust solar savings estimates What are the benefits? Increased revenue or decreased costs that will likely improve the property s value Co-educational college in Perth s southern suburbs (7 year lease) >$1.5M electricity cost savings over 25 years Cash flow positive from Year kw solar supplying 33% of the campus electricity needs

6 Frequently Asked Questions 1. What are the landlord s responsibilities, and costs/effort? The landlord or building owner who purchases electricity supply is not responsible for any capital or operational costs related to the installed solar system. 2. I m in the middle of my current electricity contract. Can I still do this before that contract expires? Yes. On occasion the size of the solar system may need to be limited until the end of the current agreement if there is a minimum take or pay clause. 3. I m worried about doing anything with the roof. What are the risks of installing solar? a. With existing property an independent dilapidation report and structural engineering report will be commissioned by Enigin to ensure the roof structure is sound and remove doubt as to requirements for future maintenance or replacement. b. With new builds there are two time-frames: i. The first 12 month builder s defects period: tendered building contracts should include the novation of the construction of the solar system with Enigin so that the roof and solar array are included in the builder s 12 month defect warranty period. This ensures all required maintenance and repair work is covered under the first 12 months defects warranty period. ii. Beyond the first 12 month defects warranty period little to no maintenance is likely to be required. The solar array increases the robustness of a commercial roof and decreases the requirement for maintenance and repairs. However: If a repair is required due to the solar array Enigin will accept liability for the roof repair and remove/replace any part of the solar array necessary at no cost to the landlord; and If the roof maintenance or repair is not related to the solar array it is very unlikely after the 12 month defect period that any part of the roof under the solar array will need to be accessed. If access is required then the affected panels can be temporarily removed and replaced by Enigin to facilitate the required roof maintenance and repair. Costs to do this will be part of the total roof repair costs.

7 4. In the event that a major re-roofing is required, Enigin may experience disruption to its business activities. Is the landlord held liable? a. Enigin will not enter into a leasing and/or electricity supply agreement less than 8 years or if re-roofing is required within 8 years. If an unforeseen major re-roofing is required during the term of our lease and/or electricity supply agreement the landlord will incur costs to remove and replace the array. In such instances the need to re-roof during the lease term will likely be due to an insurable event and hence paid by Enigin s or the Landlord s insurance depending on the nature of the event. 5. What is the term of the lease and/or electricity supply agreement? a. Enigin will enter into a long-term lease agreement with annual CPI increases which has a back-to-back electricity supply agreement for the property. b. Where only an electricity supply agreement exists the supply term is a minimum of 8 years. 6. What is the benefit of such a long term electricity supply agreement? a. Price Security: Enigin s electricity price increases are capped at a maximum of CPI annually, so customers can budget with surety and no longer be exposed to inordinate price hikes of the past decade. b. Financial Savings: Enigin s electricity price will be lower than almost all existing electricity supply agreements from the grid. c. Renewable Energy: Receive guaranteed auditable, lower cost renewable electricity to improve sustainability credentials of the property, lower carbon abatement costs, add value to the building and attract high grade tenants and higher rentals. d. Flexibility: The property owner can purchase the solar system(s) at any time at the ATO depreciated value (20 year depreciation life) to receive free electricity for themselves or to sell to tenants to quickly recoup the invested capital and generate future revenue. 7. What revenue will be generated for the landlord by leasing the roof for Enigin s solar system? Every property is different and there are many variables that will influence the cost and income for Enigin. This means that there is no standard rate per square meter that can be quoted. Nevertheless, to date our experience has been that property owners will almost always benefit financially from the new long term and recurring revenue stream. 8. How much electricity will solar be able to provide to the property? It depends on the available roof space and electricity consumption profile of the building s occupants. Typically solar will provide 25% of a commercial and industrial property s electricity demand but can range from 5% - 75%

8 About Enigin Enigin has been delivering world leading commercial solar photovoltaic (PV) systems to the WA market since its inception in We have senior professionals on staff with over 20 years experience in commercial solar PV project design, supply and installation. Our team have successfully delivered commercial solar PV projects across Australia, Asia Pacific, the Middle East and Europe. Clients have included multi-national blue chip corporations, government agencies and large not-for-profit organisations. Enigin is currently a preferred supplier of solar PV to WA local governments (WALGA). Enigin is a Clean Energy Council Approved retailer. This commitment to excellence assures our customers best practice measures and activities in relation to solar PV systems when dealing with Enigin. Energy Audit & Ratings Clean Energy Advisory - Strategy - Master Planning - Feasibility Studies Other Enigin Services W E S T E R N Clean Energy Project EPCM Monitoring & Verification Demand Side Management Energy Retailing A U S T R A L I A +61 (0) info@enigin-wa.com Unit 6 / 4 Whyalla Street Willetton, WA Project portfolio Distributed clean energy generation Solar photovoltaic Wind Co/tri-generation Geothermal Pyrolysis Anaerobic digestion Air-conditioning and refrigeration Plant & equipment retrofits Control upgrades Re-gassing Commercial, industrial and street lighting LED Induction Intelligent controls Thermal management Waste heat recovery Pinch technology Motors, pumps and fans VSD/VFD Soft starters Electrical power management Voltage optimisation Harmonic mitigation Power factor correction Pool and water heating Solar thermal Geothermal Cogeneration Domain experience Commercial Retail Offices Hotels Civic & community Warehouses Government and not for profit Local government Public transport Health Education Arts Sports & recreation Law & order Defence Industrial Mining Manufacturing Utilities Oil & gas Food & beverage Energy Efficiency Waste to Energy Renewable Energy