Energy Locals will install clean energy technologies in multi-tenant buildings such as apartments, aged care centres and commercial sites with a new $25 million investment from the Clean Energy Finance Corporation (CEFC).
The CEFC funding, made alongside a lead commitment from core-plus infrastructure fund Palisade Impact, will help accelerate the deployment of renewable technologies like solar panels, battery systems, heat pumps and electric vehicle (EV) chargers in multi-tenant sites across Australia.
The CEFC finance comes from the Powering Australia Technology Fund (PATF) under its growth equity investment strategy, which supports fast-growing technology businesses.
The ownership structures of multi-tenant sites such as apartment blocks make it challenging to install and maintain renewable energy generation technology and storage. Community energy networks help address this by providing upfront finance for the infrastructure and managing the associated billing and maintenance processes.
As an energy network owner and operator, Energy Locals finances and operates energy infrastructure in multi-tenant buildings, selling electricity and hot water to tenants. The model enables tenants to benefit from shared renewable infrastructure, a shared grid connection and wholesale energy prices.
CEFC CEO, Ian Learmonth, said the investment will help put more renewable energy into the hands of more Australians.
“It targets a section of the community which has previously struggled to share in the benefits of renewable energy generation and storage and empowers them to lower their carbon emissions and energy use. Energy Locals help overcome the structural challenges faced by building owners and developers when installing solar, batteries and other energy efficient systems.
“The transition to a net zero economy requires significant changes to the way energy is generated, consumed and stored. Increasing the diversity of energy sources and improving the resilience of the grid supports the energy needs of more Australians while delivering a cleaner, more agile network.”
Palisade Impact CEO and Co-Founder, Steve Gross, said, “We are excited about the opportunity provided by our investment in Energy Locals. It has all the characteristics we look for in a business – environmental impact, a strong management team and robust infrastructure characteristics.
“The quality of Energy Locals is testament to the capability and passion of the staff and we look forward to working with the Energy Locals team and clients in continuing to grow the business and delivering more green affordable energy for more Australians.”
Energy Locals CEO, Adrian Merrick, said, “We welcome the support of the CEFC and Palisade Impact. Their strength, experience and focus on positive outcomes for customers will enable us to deliver more renewable energy-based solutions for people who seek simplicity in a complex market.”
CEFC Head of Impact Capital, Malcolm Thornton, said that while Australia has the highest uptake of roof top solar per capita in the world, apartment residents and multi-tenant buildings like retirement villages have not been able to reap the benefits of electrification in the same way owners of freestanding homes can.
“By accelerating the uptake of renewable energy technologies, more green electricity can be delivered to hundreds of apartments and thousands of tenants who would not otherwise be able to participate fully in the energy transition. This investment is a great opportunity to speed up the deployment of renewable energy infrastructure at scale and power up renewables for more Australians.”
CEFC said that rooftop solar installations are on track to surpass 25GW of installed capacity in Australia by the end of 2024 and Australia is a global leader in residential solar deployment, with one in three homes now having rooftop solar.
Research from the University of New South Wales estimates that there is some 45.8GW of unrealised potential solar energy at houses and apartments across the country, or three times the number of panels currently installed on roofs. Rooftop solar installation could reduce greenhouse gas emissions by approximately 785Mt over two decades.
The same findings suggest that a potential 3.3GW of solar PV could be installed on Australia’s apartment buildings, unlocking renewable energy access to the at least 16 per cent of Australians who live in a strata scheme and approximately 2.5 million people who live in apartments.
The CEFC has also backed the rollout of smart meter technology solutions to help consumers better manage their energy consumption.
