Another look at solar panels

Bay Venues Ltd has abandoned a plan to save power by installing solar panels on the Baywave Aquatic Centre because it would have cost more than it saved.

BVL was considering a 102kWh system, providing 13,7310kWh to offset the aquatic centre's electricity demand. The incentive is a 40 per cent increase in power prices since 2009.

The photovoltaic system is not purchased by BVL; it pays for the electricity produced by the system at a fixed rate over a 20-year period. The system can be purchased at points throughout the 20 years at five, 10, 15-year points.

After 20 years, the system no longer requires purchase, at which time the system and upkeep becomes the customers. The system can be upgraded, a new fixed price agreed on and the agreement is able to continue for a further 20 years.

During the 20 years all maintenance is covered by the supplier.

The indicative quote for $20,000 savings a year on electricity cost, maximum payback period 12 years, minimum eight years didn't factor in debt servicing, says BVL manager Mike Page's report to the city council.

The solar panel power system was going to cost BVL $200,000, which with payback at five per cent or $11,000 a year means the cost to BVL to borrow the money would be another $220,000. While it would save $401,220 on its power bill, the scheme's total $420,000 cost meant there would be a loss of $18,780 after 20 years.

'The indicative quote and savings to install solar panels did not factor in debt servicing. Once debt servicing was factored in, the return on investment is negated. Therefore it is recommended BVL do not proceed with installing solar panels unless a more cost effective option is found,” says the report.

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2 comments

Good

Posted on 02-02-2016 08:40 | By Capt_Kaveman

Cant afford it dont get it, when will people wake up that Bay Venues Ltd is a corp rate payer rip off


Forgot

Posted on 02-02-2016 14:23 | By davidt5

to factor in increasing power prices over those 20 years.


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