Case Study for toady's rates of 4.59p
Reasons for doing solar ; Our Costumer would prefer at this time not to be named so we will refer to him as Mr. O.
Mr O's primary objective was to have his business be free of electrisity costs as much as physically possible with a secondary
objective to make some profits from his investments within an 8 year period.
Challenge: To install the largest system possible using the best branded German equipment at price structures comparable to
Chinese priced system. As we are an accredited partner of SolarWorld, we are able to negotiate the very best prices for our
costumers so that they get the best of both worlds in having top specification fitted at competitive prices to the competition.
Solution: Undersstanding the custumers requirements and objectives are important to ensure the best system is provided and
that it meets the customers expectation. D & J Roofing & Solar worked closely with SolarWorld tecnical and designed a system to maximise the capacity of the roof space available. Fortunately Mr. O has 3 roofs all facing South wich is ideal for Solar. Where South wich is ideal for Solar. Where South facing roofs are not possible, East, West, or East & West are also good performing directions.
Rewards: Savings are being made on all electrisity used during the daytime as the Solar system provides more than enough for the property needs. System over 30KW require an export meter to be fitted if you want to be paid for the export element generated from solar systems. Export meters do carry a standing charge cost from the utility supplier and do vary from sopplier to supplier but this is offset by the separate Export payments received. Mr.O now hes free electricity throughout all his business hours and as you are paid for self-generate he is also enjoying very healthy estimated payments from the Feed inTariff scheme of £1,816.08. This payment is purley for generation and is paid whether the electricity was used in the building or not. Mr.O also will receive annual export payments estimated to be in the region of £1,697.33. A further £593.00 saving is achieved as this is the amount that is wiped off the bill that previously was £650.00 before the installation of a solar system. In this example the remaining balance of £57.00 from the bill is simply paid from the Feed in Tariff payments received.
Without any inflation figures added Mr.O receives a total of £4,106.41 in benefits in year1 from his investment of less than £35,000.
He will continue to receive these payments for a total of 20 years. The payments are index linked so will go up with inflation over the years to come so will represent the same percentage in savings today as they will in the foreseeable future. Mr.O does not need to worry when and if the the tariff reducesin the future as he is locked into his agreed rate. Every custumer is issued a 2 year term contract by their utility supplier. If Mr.O's electric needs increase he will simply use them from his system and will receive less export payments, either way he has the best of both worlds, the more he uses more of his commercial electricity and Levey he saves from the gird. By using the electricity himself he reduces his Carbon footprint. Taking a pessimistic view of the economy and not adding any inflationwhatsoever, Mr.O's ROI is 8.5 years. Having this instalation Mr O can safely relax and enjoy profits from his investments for the next 11.5 yers,without the worry of rising electricity prices.
Payments are based on the current Feed in Tariff pay rate of 4.59p. Rates are set and reduced every 3 months, when a system is fitted whatever the rate is at the time that will be the set rate for the term of the contract regardless when rates continue to fall. Mr.O's situation will apply to any business where they are likely to generate a great deal more than they use. For the majority of many businesses their situation will be theoppisite and they most likely will use all of their own generated electricity saving them significant amounts off of their bill.
Tipical businesses can potentialy use up to 90-100% of their own generated power, depending on system setup and their situation. In instances where a business fits a 41.750KW system similar in setup to Mr O, and use the majority of their electric the picture of benefits would look lie this;
Payment from Feed in Tariff; £1,816.08
Export payment £0.00 (no Export meter fitted)
Savings from bill £4,451.18, using 90% of generation (using 12.5p commercial billing rate)
Total Benefits in year one, £6,267.26.
Taking a pessimistic approach of zero inflation rate over the coming years an investment of under £35,000, returns a payback of just 5.5 years. Even after your 20 year term of payments has ended you will still continue to make massive savings from your bill.