The Clean Energy Finance Corporation (CEFC) has committed $100 million to Origin Energy to help the major Australian utility further the deployment of solar energy in Australia.

CEFC pledges $100 million to Origin to drive solar energy

This development comes on the back of Origin announcing in an exclusive presentation to analysts and investors in June that it wants to become the number one solar installer in Australia.

The CEFC finance will help support Origin’s offering of power purchase agreements (PPAs) to business and residential customers, helping more customers access solar energy.

PPAs eliminate the need for business and residential customers to cover upfront solar PV system costs, while allowing them to enjoy the benefits of solar energy.

“PPAs are an innovative way of driving further uptake of solar, by effectively allowing solar customers to purchase the energy generated from their panels, rather than having to purchase the panels themselves,” CEFC Chief Executive Oliver Yates said.

“They offer a clear benefit for residential and business consumers, who can have increased confidence about their long-term electricity costs, while at the same time enjoying the benefits of solar.”

Mr Yates said the CEFC’s finance would specifically support the expansion of Origin’s Solar as a Service offering.

With Solar as a Service, Origin owns, installs and maintains the rooftop solar systems, but eligible residential and business customers are able to buy the solar energy generated from the solar system at a lower rate than average retail electricity tariffs.

“Origin is already one of Australia’s longest-standing and largest solar retailers and we aspire to be number one, driving long-term growth in the solar market,” Origin General Manager Solar and Emerging Businesses, Phil Mackey, said.

“Solar as a Service is already proving an attractive proposition to customers since it was launched earlier this year, and the CEFC finance will be used in expanding the offering, so more Australians can enjoy the benefits of solar,” Mr Mackey added.

Mr Yates said the CEFC’s commitment to this financing reflects the CEFC’s complementary role in investing alongside the private sector to support new financing structures that catalyse investment in renewable energy technologies.

“Working with the CEFC provides Origin with access to long-dated finance, which is beneficial for a solar program of this scale,” Mr Yates said.

“This will assist Origin in expanding its roll-out of solar and battery storage offerings to residential and commercial customers.”

The CEFC is considering more than $500 million in finance for solar projects, totalling more than $1 billion in value. It is working with project proponents, major utilities and retailers to expand the range of solar finance options.

Solar as a Service is currently available to residential and business consumers within a 100 km radius of the central business districts of Adelaide, Brisbane, Gold Coast, Sydney and within a 50 km radius of Townsville. Contract periods are for seven, 10 or 15 years, at the end of which customers have the option of extending the agreement of offering to buy the installed system.

Original story by EcoGeneration.com.au