Business management understands investing in marketing to achieve an ROI (return on investment) or investing in an automated accounting system to save overheads and improve the bottom line. Management understands the intangible benefits associated with certain decisions in many business areas.
With Solar as an alternative to Eskom, the Cost and benefits are not apparent, given that Solar is still a relatively unknown entity.
The good news is that Solar delivers a substantial ROI based on financial analysis and in addition, extensive intangible benefits.
Solar eliminates business losses due to load-shedding, removes the reliance on the grid, removes the dependency on fuel in the case of generators, and pre-empt the possibility of an even more unstable grid in the future. All this, in addition, to a fantastic ROI when implemented correctly.
Solar providers should provide businesses with the tools and scientific data for business management to take a well-considered decision.
The initial capital outlay of a Solar solution might seem high. Still, the Cost of a Solar solution is less than 50% of the Cost of grid electricity over a ten or fifteen-year period.
Another way to look at the investment. "The capital outlay, is a way to pre-pay electricity and in the process, get a discount of more than 50% and stable power!".
To make our point, we use an implemented example.
In our example, the customer consumed 3950 kWh a month at R 10,212.00 from the grid before Solar Complete installed the Solar Solution, of which 82% of the consumption of the business is during business hours.
Solar Complete (www.solarcomplete.co.za) installed the Solar replacement solution for
R 469,212.00 incl.
Before installing the solution, Solar Complete used scientific technology to show that the system will produce 4 079 kWh per month(48.95MWh Annual Production), equaling 100% of the customer's requirement daily. The installed solution includes a battery bank to cater to the supply of the overnight consumption from batteries charged from the system during sunlight hours.
The installed solution is grid-tied to enable Eskom or a generator to supplement the power during extended rainy days when Solar energy from the solar system is insufficient. Eskom is, therefore, a backup only, and reliance on Eskom reduces to 10% or less.
Historically the price of electricity from the grid is shown to increase by 15% compound year on year. If this customer remained on the grid, The electricity bill for the next ten years from the grid would be R 2,488,098
Financing the Solar solution over 7 Years at 9% interest cost R 633,864 Assuming 10% of electricity consumption for the next ten years is still purchased from Eskom in addition to the Finance cost of the Solar Solution, the price of electricity will be R 882,655.
This project achieves a staggering saving of R 1,605,443 over ten years—an ROI of 200+%. Non-tangible advantages are eliminating load-shedding, achieving independence for the customer, improving the value of the building and making a substantial contribution to the move towards green energy for the benefit of the planet.
By financing the solution via a specific loan or funding the solution as part of an existing bond, available capital in the business can is available for other essential requirements.
The process to convert is a surprisingly simple and quick one. The customer provides his consumption in the shape of a bill, or the Solar company do measurements. Production simulation is done using scientifically advanced technology. The Solar company designs the solution based on the correct numbers, and the installation is completed in a matter of days or a few weeks.
For a detailed assessment contact Solar Complete www.solarcomplete.co.za
