How our model works.

 

Here's the detail

 

A Power Purchase Agreement is a way for energy users to achieve zero carbon emissions overnight, and zero energy costs after a number of years.

 

In simple terms, we install a solar power system on your roof and you buy the electricity it generates.

It means you can enjoy solar without spending any money up front, reduce your emissions and save money with the same pay-as-you-go model you're used to. Some providers call it 'Solar As A Service'.

 

When the sun shines, you buy low cost power from the panels that we install at our cost. Through the night, you buy power from the grid like normal. A cloudy day is a mixture of the two.

 

The Benefits of Rooftop Solar
  • Because the electricity is created on-site, it's much cheaper than traditional power as there's no poles and wires needed to transport it to you. Network charges are the cost of getting the electricity from a traditional power station to your building. They generally make up around 40-50% of a traditional power bill. 
  • Solar electricity now costs significantly less to produce than coal or gas electricity. 
  • The result is that you pay significantly less for electricity than via any grid-based alternative - PPAs can feature rates 50% cheaper than the grid.
 
Power Purchase Agreements

We do all this using a Power Purchase Agreement (PPA).

In summary;

  • We agree to design, buy, install, maintain and guarantee the solar assets. You agree to purchase the solar that you use through the term of the agreement. Any excess flows to the grid, and we take it as revenue.
  • There is no up front cost for you.
  • The term of the agreement can generally be between 8 and 25 years, depending on what you want out of the project (lower immediate costs or faster ownership).
  • A longer term will have lower kWh rates than a shorter term agreement. 
  • At the end of the term, we transfer the asset to you at nil cost.

 

Your Monthly Bill
  1. Your monthly bill will be based on how much electricity you consume (not how much is produced by the solar).  
  2. Your monthly bill has a fixed price per kilowatt hour. This price is set for the term of the agreement, and won't even be indexed for inflation. 

 

Our clients are both landlords and renters 

If you are a renter and you needed to move out, you have a number of options: 

  • We can move the system to your new business location, or
  • We can transfer the agreement to the building owner, or
  • We can transfer the agreement to an incoming tenant, or
  • You can terminate the agreement.

Renters can also take advantage of lower rates without needing to enter an agreement with us if they can negotiate with their landlords to sign up instead. This is often a good idea for landlords as they will receive: 

  • An advantage in attracting and retaining tenants
  • Improved NABERS & Green Star Ratings
  • A solar power asset at the end of the agreement
  • Lower power bills themselves if they share the property

 

Rebates and exporting to the grid

During the term of the agreement, we will collect any government rebates and any income from exporting excess electricity to the grid. These offset the cost of the investment and reduce your monthly bills. 

 

At the end of the agreement when the assets are transferred to you, any rebate or energy export income can be collected by you.

 

What we do when the sun isn't shining

As much as we love solar, the know sun doesn't always shine. We have 2 ways to overcome this. 

1. Stay connected to the grid

You will continue to receive a monthly bill from your current retailer, it will just be a lot smaller. If you'd like we're able to manage this bill for you so you only get one bill per month. 

 

2. Batteries

If you don't have a connection to the grid, or you want to avoid blackouts, batteries are a great option. We can include them as part of your agreement. Many of our customers prefer the option of staying connected to the grid because it's cheaper. But as the price of batteries comes down over time, this will become a more attractive option. Staying connected to the grid is the best option, even with batteries.

 

Also, for larger installations that generate excess power (for examples schools during holidays) batteries enable short term storage so electricity can be sold to the grid at the time of day with the highest prices. 

 

What if there's a problem with the solar?

As part of the installation of the solar system, we include a smart meter of our own. It tells two things:

Firstly, it helps us create accurate monthly billing based on your energy consumption.

Second, we use it to monitor the health of the system, and send us off alerts if things go wrong. Often we'll know about a problem before you do. This enables us to organise either a fix or a replacement quickly and smoothly. 

 

 

Who installs the solar? 

We invest in electricity production, but we don't install the systems ourselves. We instead use local, certified installers around Australia. We are free to use any particular products. If you have a preference we'll review their suitability, and if they meet our minimum standards, we'll be happy to incorporate them into the investment associated with your agreement. 

 

The contract

Please contact our sales team to have us design a proposal and we'll share the contract T&Cs with you once the project scope is confirmed.

 

Next steps

If this model sounds interesting, please give us a call on 02 8226 8616, email us at hello@upstreamenergy.com.au, or complete the form below. 

 

If you are able to send us a recent power bill, it will give us all the details we need to send you an obligation free proposal. See the upload button in the form below. 

 

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