Is solar really worth the capital outlay?
We often get asked what the business case is for installing a solar power system for commercial or industrial operations. Apart from the feel good factor which consumers are actively seeking from companies they do business with, the savings in electricity costs quickly add up proving to be a solid return on investment
Solar Cost Savings
We recently designed and installed a 23.43kW solar PV system for Nerang Bulls Rugby Club which will help them to realise electricity cost savings of more than $5,500 annually..
The capital outlay for the system, recommended and installed by DS Energy, was a healthy $31,343 with a net system price of $18,705.
Of the power generated by the system, 47% will be utilised by the club while some 53% will be exported to the grid, generating an additional income stream to offset the energy they purchase at night. The key point of what the club is trying to achieve is energy neutrality – they will be producing as much energy as they use across the year.
The 23.43kW system is expected to account for 95% of the energy needs of the club with accumulated savings of $171,517 over 25 years. The club is financing the system over a 5 year period and while financial benefits will be neutral during this period once its paid off they system will provide in excess of $6k of free cashflow each year. For a not for profit organisation that is one less sponsor they have to recruit and a much needed boost for the community.
Every Busines is Different
While we encourage companies to thoroughly investigate the benefits of solar energy, it must be remembered that there is no one-size-fits-all solution to solar installation.
A reputable solar dealer should always undertake an economic analysis of what system would best suit any business to achieve savings on energy costs well into the future.
This should also include solutions to future-proof the solar system installed and ongoing maintenance and energy efficiency audits.
Additionally, while it may not have much bearing on the cost analysis, the installation of a solar power system has become increasingly relevant to consumers who want to feel good about their purchases and have confidence they are not negatively impacting the environment.
If you want to know how we can improve your businesses energy efficiencies and save money, contact us or call David on Ph 0402 967 966.