Electricity Cost Reduction Analysis

If you are a commercial operator, or an employee who has found yourself at home all day every day, Tropical Energy Solutions may be able to help you reduce your electricity costs.

For our residential customers: we are available to install grid connect and off-grid solar power systems. We can arrange site visits and installation with zero physical contact and adhere to all government health requirements.

For our commercial customers: We have offered energy management services for over 11 years. In response to the increasingly difficult business environment we have developed a package that is aimed at helping businesses reduce costs as we all try to work through these uncertain times.

We are a business like you.  And like you, we are adapting. The Electricity Cost Reduction Analysis package that we have developed is designed to be affordable and deliver as many low cost solutions as possible.

Our Electricity Cost Reduction analysis includes:

  • Review of 12 months electricity usage
  • Customer status check
  • Tariff analysis
  • Alternative retailer analysis (large business customers only)
  • Solar feasibility study
  • Energy efficiency recommendations

The idea is to provide cost saving solutions quickly and at a cost that is not prohibitive. Not everyone will realise the savings described below, but our package has been designed to be a cost effective way to find out.

Analysis includes


Analysing historic bill data shows how you use electricity (eg how much you use during the day compared to night-time, do you use a lot spread out over a long time or a little all at once, and do you use it consistently every day or does it vary from week days to weekends or at different times of the year). Once we know how you are using electricity, we can start to do something about it, and the associated costs.

For example, We once analysed a customer’s annual electricity usage and were able to report that he used 25% of this at night time and on weekends.  He gave us quite a bemused look and said, “but I’m closed at night time and on weekends”. It turned out that some of his staff were leaving equipment on when they went home, and the company was operating some very inefficient security lighting and lit advertising devices. It was the energy usage review that pointed to where the problem was and the extent of it, and highlighted where cost savings could be made.



The review of 12 months energy usage leads directly into the status check. Here, we are making sure that you are correctly classified as a small or large customer with your retailer or if reclassification may be possible with energy efficiency initiatives.

Case Study: Restaurant, Townsville

This customer had left Ergon Energy for an alternative retailer several years ago. We found that they were being incorrectly charged as a large customer. We managed the transition from large to small customer status, organised an interim energy contract while this was being processed and negotiated a new small business customer plan.

Annual electricity use: 89,687 kWh.
Annual Cost at current retailer: $34,896.
Annual cost at small business customer plan pricing after reclassification organised by Tropical Energy Solutions:  $21,325.
Annual savings: $13,571.



The energy usage review  provides the data used to make sure that you are on the best tariff.  It also identifies opportunities to make some changes that would see other tariffs provide additional savings.  We have built a tariff calculator that inputs your historic energy usage data and outputs the most cost effective tariff for you.  If your metering arrangements suit the new tariff then you can transition to it at no cost.  If you require a new meter there may be some costs to bring your meter box up to current standards and for the new meter.

Case Study: Butcher Shop, Townsville

As part of an energy audit for a small butcher shop we analysed 12 months of electricity use and completed a tariff analysis of all available Ergon Energy tariffs.  The customer was operating a tariff that sounds attractive as is has quite a low off-peak rate and the constant refrigeration loads of their site means they have quite high off-peak energy use.  However, the very high peak rate of this tariff outweighs any gains made by the off-peak rate.   Our tariff calculator showed that annual savings of $5,700 were achievable by switching to a more suitable tariff.  There was no cost for changing the tariff.

Case Study: Medical Facility, Townsville

We are currently working with a medical facility to investigate and reduce their electricity costs.  The review of historic electricity use showed that they are very close to being reclassified from a small to a large customer.  A tariff review showed that if they were reclassified and forced onto a different tariff this would increase annual electricity costs by $4,700 (conservative calculation).  The tariff analysis provided early identification and the opportunity to take action before costs increased.



Most people believe that Ergon Energy is the only electricity provider (retailer) in North Queensland.  While this is true for residential and most small business customers, if you are a large business customer (defined as using more than 100,000kWh of electricity per year) there may be an opportunity to realise substantial savings by switching to an alternative retailer.

The cost savings opportunities may be fantastic, but there are a couple of things that you need to be aware of before signing a contract with an alternative retailer.  Tropical Energy Solutions is here to guide you through the process.

Case Study: Farm, North Queensland

A customer of ours had left Ergon Energy for an alternative retailer several years ago.  As part of a broader project to reduce energy costs through energy efficiency initiatives such as lighting and operational changes, we negotiated a new contract with an alternative retailer.

Annual electricity use: 1,244,949 kWh.
Annual cost at Ergon Energy equivalent tariff: $309,848.
Annual cost at current retailer: $291,059
Annual cost at alternative retailer pricing negotiated by Tropical Energy Solutions: $281,459 (year 1), $275,809 (year 2).

Annual savings:
Compared to Ergon Energy: $28,389 (year 1), $34,039 (year 2).
Compared to current retailer: $9,600 (year 1), $15,250 (year 2).



This component of the package is to recommend a solar power system that is sized to best suit your needs.  We can design the right size system and recommend which components to use (ie solar panel and inverter brand and model) and provide a cost/benefit analysis.  We would, of course, be very happy if you choose us to install a solar system for you, however the feasibility report also allows you to do some market testing.  A complete feasibility report requires a site visit to inspect roof space and the suitability of your switchboard.  We will conduct these within the government’s health guidelines as they evolve.

Case Study: Body Corporate, Townsville

We were approached by a body corporate that was looking to reduce electricity costs and had come up with several ideas including: solar power for just the body corporate or for individual units, placing all air-conditioning on a single electricity account and then supplying this via a solar power system, using battery storage in combination  with the grid, going completely off grid, and combining all individual accounts and the body corporate account into one with the body corporate on selling electricity at a reduced rate.  We conducted a solar feasibility study accounting for energy usage and available roof space under each of these scenarios.  The results showed that a grid connect solar power system with the ability to have battery storage added in the future was the most viable option.  The report was able to address all other scenarios and provide factual, data based, recommendations.  Some time after the feasibility report was completed, we were engaged to install the recommended solar power system.  This has performed beyond expectations and we have been engaged to install two additional systems on buildings nearby.



Based on all of the available data we can provide energy efficiency recommendations (eg lighting retrofits) and provide a cost/benefit analysis.  These are provided on a site by site basis, not just generic ideas.

For example, If you can tell us how many lights you operate, what they are and how long they are switched on, we can provide an energy efficient solution showing how much it will cost to replace them, the cost savings and the payback period.


COST: $250+GST



Mark Lewis
Phone: 0438 212 719
Email: mark@tropicalenergysolutions.com.au

Adam Wilson
Phone: 0436 433 381
Email: adam@tropicalenergysolutions.com.au