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SMEs encouraged to save energy with new package

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A new leasing package allows businesses to implement up to $100,000 worth of energy-saving technologies and cut their power bills by as much as half, its backers say.

The package, Energy Smart Finance, has been established by the federal government-backed Low Carbon Australia fund and the Australian Securities Exchange-listed financial services company FlexiGroup.

Low Carbon Australia chief executive Meg McDonald said that with electricity costs soaring, the leasing initiative announced on Wednesday was good news for businesses wanting finance for energy-efficiency projects in order to remain competitive.

Ms McDonald said leasing converts the expense of upgrading to new equipment into a monthly cost of doing business that allows businesses to preserve their cash flow for other operating purposes.

She also said that it was difficult for many companies to gain finance from more traditional avenues for energy efficient technologies.

Low Carbon Australia is the company established by the government to provide as much as $100 million worth of assistance to businesses to encourage action on energy efficiency.

Small to medium businesses will be able to upgrade to energy-efficient technologies through lease financing for projects between $3,000 and $100,000, under the Energy Smart Finance package.

Some of the options include LED lighting, heating and cooling, voltage regulation devices and power factor correction equipment; and real time energy and water monitoring for buildings.

FlexiGroup chief executive John DeLano said if companies upgraded traditional office overhead fluorescent tubes to energy saving tubes, they could reduce lighting energy consumption by 50 per cent.

“The overwhelming feedback from both our solar energy consumers and the 200 plus larger solar retailers we service is that the consumer demand for solar energy is driven by the ongoing escalation of power prices,” he said.

Among the reasons cited for soaring power costs are ageing infrastructure that must be replaced and increases in peak demand.

The introduction of a price on carbon will also push up prices.

The Council of Australian Governments estimates that electricity prices Australia wide will increase by 37 per cent between 2010 and 2013, including a 41.7 per cent rise in New South Wales.