Why you should be supplementing your electricity
Anyone can have some form of green energy powering their business. “In fact, regardless of the business size, businesses in general should find it relatively seamless with the level of equipment and expertise available on the market to convert to renewables. It’s all dependant on what your energy consumption is, which will in turn define the size of the system you will need, and the initial cost and long term operational costs,” explains Gillespie.
Take Note: There are numerous companies that can model a business’ energy requirement, and calculate your payback period. This can help you assess whether converting is profitable for your business.
Gillespie advises that the only real commercially true-and-tested solution is solar with grid independence achieved by incorporating batteries.
“Batteries themselves are making leaps and bounds in cost reduction, capacity (mass/kWh) and reliability. It is certainly the cheapest and most reliable method, with easy access from a number of suppliers across South Africa,” he explains.
In 2005, the cost of solar power amounted to be in the region of 4.1 USD / watt. By 2012, the cost of solar power had reduced by more than 500%, making solar power a viable renewable energy alternative. It has since become cheaper, now at around R6.50 / watt.
For example
If you own a reasonable size business requiring around 12 kW of solar power, a system like this will cost around R318 000 to set-up. In its life of plant, it will drop to an 80% production capacity from its original generation capacity over a lifespan of 20 years. Daily, it should provide around 71.4 kWh of energy on an average South African day. In total it will generate 946 952 kWh of electricity across its lifetime.
By dividing the initial capital expenditure by the total power production, you can calculate a rough estimate of how much power will cost you. In this case the generation cost is 34 cents (ZAR) / kWh. The current standard business rate from Eskom is currently at 100.28 cents (ZAR) /kWh).
Customers at this stage expect businesses to look into how they can reduce their impact on the environment. If you take into consideration the instability and unreliable nature of the current electricity grid, shifting to green energy will both increase customer satisfaction and reduce electricity costs and uncertainty.
South Africa is fortunate to already have renewable energies contributing to the main grid, but for those who want to go green, reduce their reliance on the grid and their electricity costs, then renewable energy is the route to go.