South East manufacturers are being advised to look to the Sun to shine a path through Australia’s energy crisis.
Ewen Beard, sales manager from Leading Edge Energy, has been advising South Eastern Melbourne Manufacturers Alliance (SEMMA) members on energy cost savings.
“There’s never a better time to look at reducing usage from the grid by installing solar or other means,” he said.
For now, many firms were protected from the staggering price spikes due to long-term fixed contracts with energy suppliers.
The ones in danger were those coming out of contract, such as an aged care provider whose annual energy costs were set to rise from $333,000 to $840,000.
Mr Beard said solar companies were offering to install panels for free and sell back the power to businesses for less than the market grid price.
Offering such a plan is Hallam-based United Solar Energy, which has received 50 expressions-of-interest from businesses in the past two weeks.
United chief executive Richard Vargas said the plan helped businesses which found the upfront cost for solar was “out of financial reach”.
“Many businesses are viewing this as a cost-saving opportunity.
“It allows businesses to commit to a low energy rate which they can be confident is green energy as it’s the solar panels are on their own roof.
“At the end of the agreed term the panel asset than becomes the company asset.”
The plan was tailored to businesses with $500-plus electricity bills and consuming most of their energy during daylight hours.
Meanwhile, Mr Beard said the high grid prices were due to coal-generated electricity supply “falling off the cliff”. Some of that was due to flooding of coal mines and supply rail.
This combined with skyrocketing international prices for coal due to sanctions imposed on Russia and a shortage of domestic natural gas.
Mr Beard said more renewable sources “on the grid” were required.
But the previous Federal Government policy hindered renewables by “twiddling their thumbs” and “propping up coal generators”.
“We have to still have coal in the grid for the foreseeable future.”
SEMMA chief executive Vonda Fenwick represents manufacturers who employ 16,000 workers and generate $3 billion for the economy.
At the moment, less than a fifth of members were reporting an immediate impact from higher energy bills.
Some of those electricity hikes were as steep as 85 per cent.
“Some are being hit immediately, some have contracts to protect them at the moment,” Ms Fenwick said.
“It’s a question of how long these conditions take to resolve. There’s no easy answers.”
