top of page
Variety of Coins

Economic Analysis

Multiple tariff plans, export schemes and import/export scenarios were considered and optimized to achieve a practical and robust overview of the investments and projected returns of an installed renewable project.

Stocks Illustration

For a thorough and robust CAPEX & OPEX analysis,
we had to carefully review both tangible and intangible financial aspects of the project which included:  

  • Cost of renewable generation
    (capital costs + lifetime costs).  

  • Cost of battery storage
    (capital costs + lifetime costs). 

  • Various import and export schemes, pricing mechanisms etc. to maximise returns on generated and stored electricity.  

Methodology

  • Analysis of market import and export rates available to representative

  • Understanding and application of ‘renewable energy guarantees of origin’ schemes available for economic benefit

  • CAPEX & OPEX costs from market research and previous solar projects for both battery & PV installation

  • Figures were analysed through financial tool created in excel to assess lifetime profitability and overall viability of installation and operation

Solar Operations
17.png

Representative Site Economic Viability Tool

We inputted operating parameters on-site consumption and combined to calculate cost savings made from this yearly. This was combined with the CAPEX & OPEX costs and also considered the best REGO rate offered and annual earnings from this.

  • Majority of CAPEX comes from battery which exceed £1M

  • Overall project investment approximately £3.5M

  • Based on assessment of situations – best financial viability goes to using battery for storage and on-site consumption when export rate is under £1.50

  • Consideration of Purchase Price Agreement with sister company

18.png

  • Cash flow graph is shown as this is the factor assessed by client rep to examine and prioritise renewable projects

  • They desire to install projects that will generate higher profits, sooner, in order to use profits to fund further renewables projects

  • This keeps a continuous momentum in deployment of renewables on their sites and assists in meeting net zero goals

  • Over £4M over lifetime, which from Year 12 can be used to fund new renewables projects.

Conclusion 

  • For maximum revenue and profits, the best option is to install renewables and energy storage on site and ensure all stored generation is consumed by the site asset

  • Exporting back to the grid is not financially viable based on the market rates currently available 

  • Full system will generate profits by Year 12 of 25-year lifetime 

bottom of page