We understand that the concept of “saving” through solar power can sometimes be misunderstood. Allow us to clarify and shed light on this topic.
For most businesses, operations occur primarily during the day. When you invest in a solar power system, you effectively “freeze” the price for electricity, leading to significant long-term savings.
Let’s break it down with a practical example:
Business X currently pays R20,000 for electricity per month, which amounts to R1,200,000 over five years.
Why the 5-year period?
This aligns with the shortest warranty period of any component in the solar power systems we install.
If Business X invests the total amount spent on electricity (R1,200,000) in a solar system, they will break even after five years. Consider this initial investment as an upfront payment for electricity over the next five years.
BUT… Here’s the game-changer:
The price of electricity increases every year. With a tariff increase of 8% per annum over five years, the total cost of electricity for Business X amounts to R1,454,852.
With the upfront investment in a solar power system, the total savings amount to R254,852 (that’s R1/4 million) – money that you never have to pay and, therefore, save.
We know this is a simple example, but saving through solar power is truly that straightforward. Installing a solar power system locks in the price of electricity, resulting in ongoing savings. Here’s how:
- Every time the electricity prices increase, you save even more.
- Every additional year the inverter lasts, you save even more.
When you choose solar power, your electricity costs are primarily related to the installation, maintenance, and replacement of solar power system components – which is significantly cheaper than what you currently pay.
And did we mention that solar power is more reliable than Eskom power?
CONTACT US today, and our team will calculate and provide you with the potential savings your business can enjoy through solar power.
Simplify your energy costs with solar. Let Red Energy be your reliable solar partner.
