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Funded systems – Power Purchase Agreement

Fully Funded Systems – Power Purchase Agreements & Solar Gain

Solar Gain is a market leading initiative to help commercial property owners to reduce their electricity bills with no capital investment needed. By allowing NWT to lease your roof space and entering into a power purchase agreement (PPA) with us, we can provide a fully funded solution so your business can benefit from significantly cheaper electricity – typically between 6.8 and 8 pence per unit.  We understand the complexities of landlord-tenant relationships & property ownership profiles and the product is supported by robust and comprehensive lease documentation.

Grid-supplied electricity prices are unpredictable because they depend on market forces that can change at any time.  People often fix a rate with their supplier for a year or a few years, but Solar Gain allows you to fix it to the RPI for 25 years.

Here is a 100kW example:

Roof Pitch – 15

Direction – South Facing

Shading – None

Current energy cost – 10.5 pence

Cost to install – £0

Required roof area – 680m2

Estimated system output- 90,000 kWh

Assuming that 70% of generated energy is used on site:

Cost of generated energy – £0.07p

 Saving in Year 1 - £2,205

 

In the chart we have compared the average price of a kilowatt-hour of electricity from any given supplier (at 0.1050p) with the price for a kilowatt-hour of solar-generated electricity (£0.07).  Even in Year 1 this difference in unit price makes for a significant cost saving when applied to the thousands of units generated, but as time passes this saving increases in scale because electricity prices tend to rise faster than the rate of inflation.  In the example we have set RPI at 2.7%, based on data from the ONS: http://www.ons.gov.uk, and set electricity price inflation at 5%, which we feel is a conservative long-term estimate (in recent years price increases have been closer to 10%).

By installing the means to generate electricity on-site, independently, it is possible to fix a consistently lower price for the next 25 years.  Short of reducing on site demand, which is often not possible, solar PV represents a reliable, straightforward, tried and tested mechanism for reducing your overall spend on electricity.

For more information on our funding options – please visit the Solar Gain section of our NWT Energy website to see how we can help: www.nwtenergy.co.uk