PEER-TO-PEER TRADING: HOW IT COULD ADDRESS THE RISING COST OF ELECTRICITY FOR SMALL BUSINESSES

The opportunity for small to medium sized businesses to make the switch to solar and batteries is stronger than it has ever been. Similar to households, small businesses typically pay high electricity rates and unlike big businesses, possess less negotiating power on energy retail costs. Small businesses also tend to have tighter budgets when it comes to managing overheads, which means investing in energy efficiency needs to be considered even more carefully.

In a climate of increasing power prices (as of 1 July, power prices in Sydney rose 16 per cent and in the ACT 19 per cent) – a growing number of small businesses are looking for an alternative to the traditional power supply model. Solar and batteries can now be a cheaper alternative to grid power and therefore offer an increasingly compelling and economical investment. The cost-savings on power bills is significant, with savings of up to 80% to be made when switching to renewables.

For small businesses wanting to reduce energy costs and increase energy efficiency, the renewables proposition is relatively simple but there are factors to consider. Installing an intelligent solar and battery system for example could provide average annual savings on electricity bills of around $2,000 for a one-off investment of $15,000. This is attractive to businesses that can afford the upfront cost, own their premise, and have sufficient roof space in relation to their energy requirements. For small businesses in a rental however, the situation can be trickier, usually because the landlord holds executive decision over the property, but it’s not impossible.

One underlying problem is that Australia’s power network regulations are not set up to allow energy to be traded in local areas cheaply. If regulations were changed to encourage a peer-to peer model, this could offer small businesses – and energy customers generally – the ability to access the benefits of solar and batteries without actually having systems located on their premises. Read more

Emlyn Keane - Dynamic Business - 22 Aug 2017