Business Case Study
LED Lighting & PV Solar: A One-Two Combination for Energy Savings
We were recently contacted by a client who learned about our value proposition and how we go about lowering energy costs. We walked the property, reviewed utility bills and rolled up our sleeves.
Our LED Lighting Solution
We began by completing a lighting audit for the client, which demonstrated a significant cost savings could be realized using LED lighting. We then submitted the proposed LED lighting upgrades to the local utility.
The utility came back with a 40% rebate on the LED lighting and installation for this project. We then arranged zero percent financing for the client, and the client quickly signed on. The projected cash flow was tremendous, with an estimated ROI of 2 years 10 months.
After just 1 year with this LED lighting solution installed, our client has saved 23% in overall energy consumption. Energy consumption has dropped from 230 to 177 kilowatt hours per year, and a projected savings of approximately $315,000 is forecast over the next 30 years.
Our PV Solar Energy Solution
After lowering energy consumption using LED lighting, we moved directly into a PV Solar project. The client had a pitched roof on a 42,000 square foot building running east to west. It was a perfect south-facing structure, with an azimuth of 182 degrees.
Taking into account the proper set-backs to meet local building codes, we were able to design a 132 kilowatt system for the client’s building. This 132 kW system is projected to produce approximately 175 kilowatt hours of energy per year.
We then applied for Zero Emission Renewable Energy Credits (ZREC) with the local utility company. Our offer was to produce clean renewable solar energy at a price of $120 per ZREC, and our offer was accepted. A projected savings of approximately $1,002,218 is forecast for this PV Solar project over the next 30 years.
PV Solar Cost Savings: By The Numbers
|Client Cost||$368,280||Paid Over 1-20 Years|
|ZREC Payments to Client||$304,210||Paid Over a 15-Year Period|
|Federal Tax Credit||$110,484||30% Federal Tax Credit (Year 1)|
|MACRS Depreciation *||$112,694||Applied Over a 5-Year Period|
|Energy Savings||$843,110||Realized Over a 30-Year Period|
Power Consumption Savings
This combo project is forecast to save our client 1,590,000 kilowatt hours from the LED lighting solution and 4,886,553 kilowatt hours from the PV Solar solution over the next 30 years. Even better, the positive impact to our environment and energy independence aligns with the client’s corporate sustainability goals.
While each project we undertake is different, we have demonstrated time after time that “going green” is a smart financial decision.
* MACRS Depreciation: The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation.
Disclosure: Due to many factors, not all projects can deliver the same returns as those outlined above. Each case is unique, and must be treated as such. Forecasts are based on the most advanced industry software available.