New guide does the hard work on energy costs and emissions for Australian property industry

A joint media release from the Clean Energy Finance Corporation and the Property Council of Australia

13 September 2018

Australian property owners – from residential to large-scale commercial – can immediately cut their energy costs and reduce their emissions thanks to a timely new guide from the Clean Energy Finance Corporation and the Property Council of Australia.

The comprehensive guide, Distributed energy in the property sector – today’s opportunities, analyses the nine most common distributed energy options for houses, apartments, commercial, retail and industrial property.

It looks at a broad range of proven technologies – from solar PV and batteries to heat pumps, off-site renewables and demand management systems – and indicates which are best suited for different property types. Importantly, it also looks at the business case for investment, giving owners and managers helpful insights into the likely benefits and payback periods.

Examples include a $3 million drop in annual electricity charges for Townsville’s James Cook University following the installation of thermal storage, and an 11 per cent drop in power consumption at Sydney Markets, which boasts Australia’s largest private sector rooftop solar array. An aged care facility is meeting up to half its hot water needs thanks to a solar hot water system and Monash University in Melbourne is on track to substantially cut its gas consumption thanks to new energy efficient heat pumps.

CEFC CEO Ian Learmonth said: “This guide is about taking the hard work out of switching to clean energy solutions right across the property sector. Whether it’s individual homes, apartment developments or commercial, industrial and office buildings, with the right approach it’s possible to immediately cut energy consumption, cut energy costs and cut energy emissions.

“Together with the Property Council, we want to make smarter, cleaner energy the standard when it comes to Australia’s built environment.  We’re confident that with more renewable energy and better energy efficiency measures, the property sector can achieve net zero emissions by 2050, with the potential to capture very significant energy savings in the process.”

Property Council of Australia Chief Executive Ken Morrison said: “Rising wholesale energy costs and uncertainty regarding policy and market settings has resulted in unprecedented cost pressures for households and businesses.

“Our industry leaders have shown they can deliver rapid improvements in the quality and performance of buildings and have taken action to mitigate against rising electricity prices and reduce emissions by investing in clean energy technology.

“This guide is designed to drive an industry-wide understanding of the opportunity as well as provide practical advice on business case preparation and implementation of clean energy technology for property.”  

Highlights from the guide include:

1. For homes, all the technologies are in the lowest investment range, up to a maximum $25,000, with upfront costs expected to be recovered in under nine years.
2. While investment costs for large-scale commercial and retail properties can exceed $100,000, in the case of solar PV the payback period is four years.
3. The highest upfront investment costs, potentially of more than $500,000, included thermal storage installations for commercial, retail and industrial buildings, which can substantially reduce exposure to peak electricity prices. However, the payback period of 15 years or less complements the relatively long lives of these large-scale scale and complex structures.

Copies of the guide are available at Distributed energy in the property sector – today’s opportunities

ABOUT THE PROPERTY COUNCIL OF AUSTRALIA

The Property Council of Australia is the leading advocate for Australia’s biggest industry and biggest employer – property.  The property industry represents 13% of Australia's GDP, employs 1.4 million Australians (more than mining and manufacturing combined) and secures the future of 14.8 million Australians who have a financial stake in property through their super funds. The Property Council champions the interests of more than 2200 member companies that represent the full spectrum of the industry, including those who invest, own, manage and develop in all sectors of property, creating landmark projects and environments where people live, work, shop and play.