Ensuring solar has good ROI for Kiwi businesses

Black Diamond Technologies Limited installed a solar system at its head office in Wellington. Photo / Supplied

ELEMENT PROMOTION: Black Diamond Technologies Limited (BDT) was looking for an efficient and affordable energy solution for its head office in Wellington. The install of a solar array was identified as the most effective opportunity to reduce overall energy consumption, while also being cost effective.

For many commercial businesses in New Zealand, the real cost of electricity can be tens of thousands of dollars every year. With an annual energy usage of over 392MW (392,000kWh), Black Diamond Technologies Limited (BDT) was no different.

Electricity is, of course, vital to any business however BDT noticed that the price of electricity was fluctuating and there was a need to explore other electricity options.

The ability to operate with lower ongoing energy costs would ensure the business as a whole could run more efficiently.

BDT's annual energy consumption is spread across four facilities nationwide, and BDT's head office, based in Lower Hutt, Wellington, was identified as the most effective opportunity to reduce overall energy consumption. With over 50 staff, the BDT head office contributes 64 per cent of the company's annual energy consumption.

As exclusive distributors of Mitsubishi Electric products, BDT was already distributing premium quality Mitsubishi Electric Black Diamond Solar Panels to the New Zealand solar photovoltaic (PV) market, so did not need to look far to find a solution.

As solar PV is now more affordable than ever, it was concluded that BDT's return on investment (ROI), and overall reduction in ongoing electricity costs would benefit from installing this new technology.

BDT understood that the principles applicable to residential solar PV remain fundamental to commercial installations. Any energy generated by solar panels installed on the BDT head office would automatically be directed for use within the company first before surplus power is exported to the grid and credited against BDT's electricity bill.

The advantage of installing PV was due to the amount of energy BDT consumes across the day (also known as its load profile). Like many commercial businesses, BDT consumes a majority of its power during the day, which is well suited to PV.

With energy consumption occurring at the same time that energy is generated, BDT is able to get the maximum return per kWh. When more energy is generated than used, for example on the weekend, the excess units are credited against its electricity bill.

It was vital any solar array installed would lead to a significant reduction in BDT's overall energy usage but also ensure maximum ROI was achieved. The decision on size was based not solely on roof space available but also on the way BDT uses electricity. A system was designed that ensures any energy generated during office hours is self-consumed, ensuring maximum ROI.

After BDT's requirements were fully assessed, the decision was made to choose a 30.68 kilowatt peak (kWp) array. In total, 118 Mitsubishi Electric Premium PV-MLE260HD solar panels were installed.

The final layout and installation at BDT's head office was unique. BDT places high importance on industry-leading technical training and support for the team's nationwide specialists and consumers. With this in mind, BDT placed great emphasis on incorporating this 30.68kWp array into their national technical training facility based at head office.

It was decided to install the PV inverters (which convert the energy generated from the array into energy suitable for consumption) as a display which can be used to explain PV. It was decided that inverter technology common in both commercial and residential scale projects would be used in order to add value to those attending training courses.

In total, BDT's head office solar array is estimated to generate 34,270kWh per year. The system is designed for maximum self-consumption and has the potential to provide 25.12 per cent estimated savings on the daily operational energy requirements. As is the case with any commercial solar PV array, BDT's head office array can also be depreciated across its life cycle to create a tax benefit and increase the return on investment. BDT is also proud to report an estimated annual CO² reduction of 16.4 tonne.

For more information, visit http://www.mitsubishi-electric.co.nz/solar/

This article is an Element Promotion.