FINANCIAL


FINANCIAL

In financial terms, many energy and water efficiency measures have an excellent payback period - often only one or two years such as with LED lights, or for some businesses with Propelair toilets (only 1,5 litres per flush). 

There are also some technologies like heat pumps which take a bit longer to pay back but which have a long lifespan of 20 or so years with relatively modest maintenance costs.  

Generally energy efficient technologies can be financed - paid for by energy / water savings over the period of a loan enabling immediate savings in operational costs. Mostly they also have the advantage that they qualify for enhanced capital allowance meaning that  their cost can be written off against tax in year one. 

Usually things like LED lighting, heat pumps, heat recovery ventilation, heating and lighting controls, and water efficient Propelair toilets can be loan funded out of operational savings so immediately and for the life of the product improving the company's bottom line.

Solar power is also becoming a much more compelling proposition for any business with a large suitable roof and the ability to consume a large proportion of the power on site. 

20 years ago solar panels cost around $3.00 per watt ex factory. In 2010, this figure had dropped to around $1.00 and now in 2020, high efficiency mono-crystalline solar panels can cost as little as $0.18 an astonishing 94% cost reduction over a 20 year period! Whats more, today's panels generate around 50% more power in a given area than those of 20 years ago.

True, cost reductions in labour, cabling, support frames, inverters and planning have not dropped as much, but even so, according to the International Energy Agency, solar power is in some parts of the world now generating the cheapest power in real terms that has ever been generated anywhere!

Solar arrays at commercial and industrial sites are usually quite easy to fund either using loans or through a fixed term power purchase agreement with option to buy at the end of the agreed term. Usually the PPA will be agreed at a rate significantly below the cost of mains power.

Chiltern Utility Services loves to work with businesses to reduce their energy and water consumption, cut their CO2 emissions and enhance their reputation for sustainability.