Does it really pay off to invest in photovoltaic?
The answer is yes. For the competitiveness and sustainability of companies. With energy prices going up and the influence of this increase on the cost of production, it is fundamental to consider this possibility. Photovoltaic systems for self-consumption are highly advantageous, especially for industry and agriculture.
According to data from the INE (National Statistics Institute), in February 2022, the price of energy increased by 60.9%, in January, 46.5%, and in December 2021, 64.5%. The increases in energy prices caused the Industrial Production Price Index (IPPI) to rise. In February 2022 industrial production prices rose by 20.7%, in January by 17.8% and in December 2021 by 20%. This rise affects the largest consumers of energy, i.e. industry. This is a clear signal for companies to invest in photovoltaic energy.
Why invest in photovoltaic?
Companies can replace part of the power normally purchased from the grid with a photovoltaic self-production installation. This option will provide a significant reduction in electricity bills, as each kWh produced and consumed (self-production) could correspond to a saving of between 10 and 18 cents (data for 2020). This saving depends directly on the consumption voltage level and the tariff in question.
Companies can achieve an excellent return, as a company can usually self-consume between 70 and 100% of the energy it produces.
By investing in photovoltaic energy, not only companies benefit, but also potential beneficiaries are their neighbours, through contracts, be they private individuals or companies. New photovoltaic self-production systems not only allow solar energy to be consumed on site but also shared. Thus, for companies in trade and industry, it is a financially and ecologically advantageous solution.
Nowadays, the investment in a solar photovoltaic system for self-consumption can be amortised over a period of four to five years. Which factors influence the payback of this investment? Take note:
- Solar radiation on site
- On-site energy consumption
- Size of the photovoltaic system
- Power of the solar panels installed
- Durability and quality of the system
- Cost of acquisition
- Possibility of obtaining a subsidy
Did you know that it is possible to invest in photovoltaic at no cost to your company?
If your company wants to install a photovoltaic system, but cannot or does not want to invest in this installation, you can resort to a partner. This partner takes responsibility for the ownership and management of the photovoltaic project, ensuring the performance of the installation.
There are investment solutions tailored to the needs of each company that allow you to invest in “green” energies without any investment. How can this be done? By signing a contract with an investing partner who bears the cost of the photovoltaic installation and is remunerated through part of the income obtained from the installed system. It is an excellent possibility for companies that, in this way, do not have to assume any financial responsibility or risk. Their only commitment is to purchase all the energy produced by the photovoltaic system for an amount defined in the contract, which is lower than the tariff they buy from the network.
At the end of the contract between the company and the investor, all proceeds from the installation revert to the company. It is recommended that companies opt for an investment model with a purchase option throughout the contract and with independence of choice of its energy supplier from the grid.
We remind you that the simplified licensing of new solar photovoltaic installations for self-production (UPAC) came into force at the beginning of 2020 with the aim of speeding up the whole process of obtaining the necessary permits. In summary: It is only for self-production photovoltaic installations above 350 W that it is mandatory to give prior notice to the DGEG. Solar plants above 30 kW must also be registered at DGEG, as they require an operating certificate. Projects up to 1 MW require a production and exploration license. Installations must be carried out by certified companies or technicians. If the power of the plant is greater than 20.7 kW, an inspection is required.
Example: Photovoltaic Solar Power Plants at Garcias, S.A.
The company Garcias, S.A. has three solar photovoltaic plants. It produces around 227.4 MWh/year. It has a total installed capacity of 134 kWp, in Alcochete, Algoz (Albufeira) and Funchal. Self-production is around 180 MWh per year. The result? A reduction of around 41% of the network’s global consumption.
SOLVasto can carry out dimensioning and a financial feasibility study for your company. Contact us for more information.