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Commercial Solar For Printing Business

The Printing Spot in Gilroy, California

We designed a solar power system for a business in Gilroy, CaliforniaPrinting Spot Solar Power Case Study

 It consists of 112 Sharp NT-S5E1U PV modules and 7 Sunnyboy 2500 UL-SBD inverters. A total of 20,720 watts of peak power generating capability is provided (based on manufacturer output ratings).

This solar energy system provides about 25,364 kwh per year -- after taking into account various real-world efficiency losses. The section below briefly summarizes the detailed energy bill analysis, performance modeling and system design work we did for the customer.

Printing Spot Solar Power Savings Analysis
 
Printing Spot Solar Power Savings Summary

Total costs of the solar energy system were $144,000 including all engineering, equipment, permits and installation on this flat roof. The customer received:

  • $68,769 rebate from PG&E as part of the State-mandated Self Generation Incentive Program
  • $11,709 California State Tax Credit
  • $6,635 Federal Tax Credit

Net costs to the business (not including the accelerated depreciation as described below) were $59,715.

Based on current A-10 commercial electric rates, a 7% discount rate, 30 year system lifetime, 5% annual electrical rate increases, 6% borrowing rates, and 42% combined State and Federal tax rates, this system will save the business $5,559 per year with a Net Present Value of $83,233.

On a cash basis, this business' electric bill went down by $463 per month, and their after tax loan payment on the system was $339. Their monthly positive cash flow was therefore $215. Moreover, because of the MACRS depreciation schedule used for PV systems, 50% of the system is depreciated in the first year with the remainder depreciated over the subsequent four years. The table below shows the magnitude of the positive cash flows for the solar energy system over the first ten years.

Printing Spot Solar Power Cash Flow

Energy Analysis
Our recommendation to install this particular solar energy system was based on a detailed analysis of the business' energy bills, roof condition, shading and orientation, electrical system, local weather conditions, environmental interests, financial goals, economic parameters and aesthetic preferences. This analysis was summarized in a detailed, 50+ page report that we presented to the business.

The two bar charts below highlight the results of our before and after energy bill analysis. Note that the solar energy system dramatically reduces energy charges and surcharges (per kwh) in the summer months -- when the rates are highest. There is also a reduction in demand charges (per kw). For businesses that are on complicated demand and seasonal rates, the only way to accurately model your savings is to compare your before and after consumption on a monthly basis using actual, on-site conditions coupled with current utility rates.

Printing Spot Utility Cost Without Solar Power

Printing Spot Electric Cost With Solar Power

These savings do not take into account several important factors:

  • Distributed solar power is a renewable energy resource and very kind to the environment.
  • Renewable solar energy system improvements add significantly to the value of your property without any increase in the assessed value in most municipalities.
  • Cash flow savings are likely to be hundreds of dollars per month if you were to install a solar energy system in conjunction with other energy saving devices - and then refinance the entire package at a lower interest rate.

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