Increasing solar demand for aged care facilities

On-site power generation through solar is helping aged care facilities reduce a dominant operating expense within their budget. The benefit of long-term savings delivered in an environmentally sustainable way has driven a strong interest from the growing aged care sector.

Australia’s aged care facilities are facing unprecedented growth driven from an ageing population and heightened competition to meet the demands of the market. Operators seeking to meet this demand are consistently looking to enhance their facilities in a sustainable and cost-effective way. Solar power can play a key role in meeting the energy demands of an aged care facility, while delivering significant cost savings and enhancing the facility’s sustainable profile.

“It is not surprising that an asset that can deliver returns in excess of 20% is attracting strong interest,” said the director of Solgen Energy, David Naismith. “The profile of energy consumption within the aged care sector makes a very compelling business case, irrespective of the size of the operator.

“While purchasing outright generally still generates the best returns, financing options under power purchase agreements or leasing mean the system can be installed at zero cost from day one. The savings generated are then used to pay the financing over the term — irrespective, it still ends up cash flow positive for the business.”

In 2014, Solgen Energy completed a 100 kW rooftop solar power installation at Loreto Home for the Aged in Townsville. The system integrates seamlessly with an existing backup generator and will produce around 180 MWh of energy throughout the year — enough to run over 30 average households — saving over 189.2 tonnes of emissions in the process. A system such as this will generate a payback equivalent of less than three years and returns of over 30%.

More recently, Solgen Energy was awarded a 100 kW solar power project for SwanCare Group, a provider of residential care facilities. SwanCare Group recently unveiled its plan for 44 new apartments, which are expected to be completed in late 2016. A rooftop solar photovoltaic system is set to reduce the energy consumption and running costs of the entire building. The project is planned for completion at the end of this year.

Solar power thus offers a compelling case for minimising the running costs of both new and existing facilities. These costs savings create opportunities for further service enhancements to the facility and greater returns for investors.

Image credit: ©Warren Goldswain/Dollar Photo Club