The buyers guide to Solar September Powering Performance: The buyers guide to Solar

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1 The buyers guide to Solar September 2018 Powering Performance: The buyers guide to Solar

2 Contents What is Solar? 3 Introduction to Solar Solar applications Benefits of Solar Economics of Solar 5 Evaluating your energy bill Developing a bankable Solar solution Example of a customised system layout Funding a Solar project 6 Capital Sale Power Purchase Agreement (PPA) Solar installations 7 Rooftop Ground mount Adding a Storage solution Installation process Solar technology 9 The equipment How it works Monitoring Why Centrica Business Solutions 11 Solar in action 12 The London Borough of Southwark Toyota Glossary of terms 14 Useful contacts and further information 15 About Centrica Business Solutions 16 2

3 What is Solar? Introduction to Solar Operational excellence and cost management are a key focus for many businesses and energy costs and demand charges can directly impact a company s bottom line. Additionally, prices for grid electricity are unpredictable and can vary widely from month to month, making forecasting operating expenses difficult. A 100% renewable energy solution for driving performance and efficiency is directly above our heads. Instead of drawing your energy from the grid, you can optimise your day-to-day performance by using a natural resource to power your business sunshine. Solar power enables you to generate your own electricity onsite by converting the power of the sun into electricity, lowering your reliance on unpredictable grid electricity. This energy can be used directly onsite to power your business needs, stored in a battery system for later use when demand prices are high, or fed back into the grid to create an additional revenue stream. Solar power is 100% sustainable, reliable, and cost-effective ideal for businesses who want to reduce both energy costs and carbon emissions. In addition, it combines the reliability of your traditional energy supply with sustainability measures to lessen your carbon footprint and meet sustainability goals. Solar should always be considered when: Designing a new building Installing a new roof Maximising property and land value Reviewing electricity supply and demand Lowering energy expenses Considering energy efficiency Reducing CO 2 emissions Solar applications Apartment buildings Automobile dealerships Cold chain and distribution Leisure facilities Food and beverage Horticulture and farming Healthcare and hospitals Hotels Manufacturing Municipal buildings Office buildings Schools and universities 3

4 What is Solar? A truly sustainable energy solution Solar is a 100% renewable energy solution that can yield a robust business advantage by lowering operating expenses and boosting your profitability. Going Solar makes you more competitive. Unlike your traditional electricity supply, sunshine remains the same price forever. It is the same price today as it will be 5, 10, or 25 years from now. While some businesses may struggle to keep up with rising grid prices, businesses that install Solar are tapping into an abundant energy source that helps shield them from future rate increases. This can be a powerful competitive advantage especially if you operate in an industry with narrow profit margins. Benefits of Solar Lower electricity costs Generate your own electricity onsite Reduce reliance on more expensive grid energy Reduce your operating expenses Shield your business from unpredictable energy prices Create revenue Solar can provide a source of revenue from any excess power generated Monetise your energy Solar can be used as part of a more comprehensive energy strategy Improve reliability The sun provides a consistent source of power, even on cloudy/rainy days Forecast operating expenses Install a Storage solution and use stored Solar energy when the grid is down, increasing your site resilience Shave peak energy usage and spend By generating your own electricity onsite every day, you will reduce your need for more costly grid energy. But the benefits don t end there. Combining Solar and Storage results in an integrated solution providing relief from ever-increasing demand charges and the opportunity to monetise your energy. The addition of Storage provides flexibility and reduces energy spend during expensive peak hours. Boost sustainability and reduce carbon footprint Solar helps improve your sustainability goals because you are generating your own power onsite as opposed to pulling electricity from the grid. Generating your own power using a 100% renewable resource is not only the right thing to do financially, but socially as well. With Solar installed at your facility, you can reduce your carbon footprint and help the environment Solar technology doesn t emit C0 2 and other harmful greenhouse gases. Unlock value from unused property assets Installing Solar at your facility helps you unlock value on your property, such as your: Roof Empty land space With Solar installed on these spaces, you get the most out of your available resources. Unused space now becomes a source of onsite energy generation, optimising your operations and adding value. 4

5 Economics of Solar Evaluating your energy bill One of the main reasons many businesses go Solar is to reduce their operating costs through lower energy bills. The first part of our Solar evaluation process is to analyse your energy consumption and spend over the course of the past several electricity bills from the utility company. This information is used to design a bankable Solar system that will deliver electricity savings by offsetting a certain percentage of the electricity you re drawing from the grid with clean, efficient Solar power instead. This percentage will vary from site to site and depends on several factors: System size installed Amount of sunshine your site receives Your energy consumption This analysis of your energy consumption and spend will not only allow us to design a Solar system specific to your site s needs, but also determine if there are any energy efficiency measures you can take for even further optimisation. Developing a bankable Solar solution After the analysis of your site viability, utility bill, and energy usage, our Solar system designers and engineers tailor your system. You will receive a proposed design of your system that showcases estimated system production, the system size, and components that comprise the system. Because our team accurately measures the available Solar resource at your facility and custom-designs your system, you will know exactly what your system will produce. You can be assured of maximum return on investment and will be able to accurately forecast your energy spend. Your designed system: 1. Maximises your available space for Solar 2. Maximises energy production based on your available sunlight 3. Uses best-quality Tier 1 components that are guaranteed to perform Example of a customised system layout System design summary System size Panel type Mounting Inverters Annual estimated Solar production kw TSM-285PC14 (Trina Solar) Ballasted Roof Mounting System SE17K (SolarEdge) and P600 (SolarEdge) MWh 61% Solar power 39% utility power 5

6 Funding a Solar project Solar is a financially sound, affordable source of energy, and Centrica Business Solutions offers two funding options. Select the funding approach that meets your business objectives and goals, but regardless of which method you choose, going Solar can help you save money and boost the profitability of your business. Capital Sale Funding your Solar system with upfront capital is an option that results in the best return on investment (ROI). This funding method is ideal for companies who want to invest in Solar and enjoy payback. You pay for and take ownership of the Solar system and are responsible for maintaining it to ensure optimum performance. This approach pays for itself in the form of higher savings and profits allowing you to reinvest in your business. Benefits include: Greater savings over 25 years Maximum return on investment System is maintained through an O&M solution provided by Centrica Business Solutions Power Purchase Agreement (PPA) A PPA is a low-maintenance option for going Solar and reducing your energy bill. This option is ideal for businesses who don t have the capacity for a capital outlay. You purchase the low-cost Solar electricity generated from the system installed at your site at a discounted rate for the term of the contract. Under these arrangements, the system is owned and maintained by Centrica Business Solutions. Benefits include: No capital outlay needed Immediate electricity savings No ownership responsibilities Simply purchase the generated power 6

7 Solar installations Monetise your roof or unused land space Rooftop installation Solar panels are mounted to the available Solaroptimal roof space of your facility. Benefits: Monetise your roof and generate onsite Solar power A visible testament to sustainability and environmental commitments Generally the least expensive, most straightforward option for going Solar Ground mount installation Solar panels are installed in the ground either onsite or at another location. Benefits: More versatile than rooftop Solar; installed where conditions are best Eliminates any issues with roof angle, orientation, space, and size Ideal when your roof is not Solar suitable due to constraints or shading Combining Solar and Storage provides an integrated solution A Solar and Storage solution is an integrated approach allowing businesses of all sizes to further reduce their reliability on the grid, lower operating expenses, better forecast energy spend, and become more sustainable. Adding a Storage solution to your Solar installation provides relief from ever-increasing demand charges and the opportunity to monetise your energy. The addition of Storage provides flexibility and reduces energy spend during expensive peak hours. While your Solar system saves you money on your kwh energy charges, Storage saves you money on your kw demand charges. Storage will also boost the resilience of your facility by managing a critical load during a power outage. Benefits include: Save money during expensive peak times Manage a critical load when the grid is down Improve reliability and resilience 7

8 Solar installations The installation process 1. Qualification/scoping One of the main reasons for choosing Solar is to reduce your electricity costs. To determine just how much money you could save depends on the suitability of your site. We will: Discuss your goals in depth Review your site and electricity usage Perform a pricing and benefits analysis Present a short proposal 2. Solution development We conduct an extensive site visit to confirm the initial scope, inspect electrical systems, and confirm the condition of your site. Within 2 3 weeks of the site visit, we engineer a detailed structural and electrical design customised to your site and energy needs. We design a system layout, schematic and generation estimate. 3. Final proposal When your solution is finalised by our engineering team following the onsite visit, we present you with your detailed Solar proposal. We will show you your proposed design, funding options, and how much you can expect to save by installing Solar on your site. 4. Construction Our project managers will work with you to develop an installation plan so that we do not disrupt your business operations. Our team safely and efficiently installs the Solar arrays onsite. We follow a site QA and commissioning process and perform compliance checks to ensure quality workmanship. 5. Operation, monitoring and maintenance Following extensive testing, your Solar system is live and generating renewable energy. Monitoring, reporting, and data analysis are performed by our in-house teams. 8

9 Solar technology The equipment Solar is a tested and proven technology. Crystalline silicon technology is the most reliable, proven Solar technology available. Decades of continuous innovation since the technology was first developed has resulted in panels that last decades at incredibly high efficiency levels. We only install Tier 1 bankable components which are backed by warranties and are rigorously tested. You can be assured you are receiving top-quality components that will generate maximum energy to power your facility for decades. Manufacturer warranties Solar panels: 10 Years Mounting system: 10 Years Inverters: 5 Years (extended warranties are available) How the technology converts sunshine into power 1. Solar panels Photovoltaic (PV) cells convert sunlight into DC electricity. 2. Inverters Inverters convert DC electricity into AC electricity the type of electricity your business uses. 3. Generation meter The AC electricity is fed through a generation meter into the distribution board. 4. Distribution board The distribution board supplies power for your business needs. G59 relay monitors the grid to ensure safe operation during faults. 5. Site meter The site meter meters export to the grid or reduction in purchased electricity depending on the site load. 6. National Grid Excess Solar electricity generated is sent to the grid for the utility to use. Any additional electricity needs are pulled from the grid. 9

10 Solar technology System monitoring verifies productivity System monitoring demonstrates our commitment to standing behind our promises to you. Your Solar monitoring system provides enhanced performance monitoring through immediate fault detection and alerts at the module level, string level and system level. You will also receive a login to a monitoring portal where you will have 24/7 access to your web data. Our team in Windsor will continually monitor your system and address any issues in a prompt manner to ensure performance guarantees are met. Optimising electricity generation and picking up any outages as soon as possible, our Solar PV engineers are then engaged to resolve any issues that may arise. Equipment monitoring Panel-by-panel performance Demand monitoring Inverter monitoring String-level monitoring Production monitoring Energy savings Environmental impact 24/7 CUSTOMER ACCESS 10

11 Centrica Business Solutions The buyers guide to Solar Why Centrica Business Solutions Maximised performance Breadth of portfolio We will help you maximise savings and provide customised service from designing your system using inverter options that optimise your system s production, to your system installation using high-quality Tier 1 equipment, to the maintenance and monitoring of your system after it has been turned on. Our broad portfolio, expertise and end-to-end capabilities allow us to be your source for energy solutions. This means we can help you simplify and consolidate your approach to energy management and ultimately power new levels of performance and efficiency for your business. Combining our extensive experience developing rooftop and ground mount Solar projects with our flexible funding options and tailored system designs, our experienced team can provide the best Solar solution for your business. Worry-free investment Our O&M offerings ensure your system is maintained for peak performance, and our team continually monitors your system and addresses any issues promptly. We will be with you through the 25+ year life of your Solar system, ensuring you are happy with your decision. 11 Industry and technical expertise We are unique within the energy supply market in being able to combine supply and solutions to offer creative commercial packages to our customers. Our global workforce offers exceptional energy market expertise in engineering, design, technology and operational management. Our experience allows us to offer unique propositions for our customers, helping them to manage financial goals, improve energy efficiency and simplify their energy management. Global player in the energy markets Our ongoing investment in new technologies gives our customers access to cutting edge energy innovations such as our unique Energy Insight solution and market leading integrated customer portal. We are a global player in the energy markets and hold market-leading positions in several national markets, including Europe and the United States, providing standardisation of service across continents. Financial stability and derisked financial proposition Centrica is an established, leading player in the global energy industry. As a FTSE100 company with 28 billion in annual revenue, we are here for the long term, and our financial strength gives our customers the flexibility to invest in their own development via innovative commercial solutions.

12 Solar power in action The London Borough of Southwark Reducing 337 tonnes of CO2 annually with Solar 337 TONNES OF CO2 REDUCED ANNUALLY The London Borough of Southwark has invested in our Solar PV package at a cost-effective price that will also reduce carbon emissions in the district. Delivering Solar PV in a restrictive space The tight conurbation of the London Borough of Southwark presented many challenges in finding a suitably sized building which offered a cost-effective price to introduce Solar PV. Finding additional on-site capacity Veolia worked in partnership with the London Borough of Southwark to provide a long-term integrated waste management solution that diverts over 90% of the borough s household waste away from landfill. The Devon Street facility handles all the borough s household waste and recycling using the best available recycling and treatment technologies. The recycling and waste management takes places in one integrated building and the roof area of 30,000m² has presented Southwark with an ideal platform on which to mount a large-scale cost-effective Solar PV array. Centrica Business Solutions worked with the main contractor to build the current design and identified areas with sufficient capacity to take additional loads. It also ensured the integrity of the building, and that warranties remained, while also maintaining compliance with current building regulations. The site has a supply of 2.3MVA which powers heavy process plant, conveyors and odour extraction on a 24/7 operation. The district network operator (UKPN) played a key role in modelling the installation to determine any adverse effects of PV on such scale in such a tight conurbation, before granting approval. The results We worked closely with CA Building Products to ensure that residual guarantees would not be compromised through the mounting rail and clamp system. An optimised inverter solution was chosen to enhance the performance of the PV system on a waveform roof. 750kw OF PEAK OUTPUT 12

13 Solar power in action Toyota Using the sun to power the plant 17k PV MODULES INSTALLED We created the UK s largest factoryconnected Solar PV system for Toyota, allowing them to generate their own power, naturally. They were looking for a greener solution Toyota wanted a partner to create a turnkey project for the UK s largest factory-connected Solar PV installation. This was to help power their first European Model Sustainable Plant at Burnaston. We completed the project in just four months Following our commission, there was a change in the government Feed-in Tariffs (FiT) scheme for large-scale systems a programme that promoted the uptake of renewable and low-carbon electricity generation technologies. This change allowed us to significantly accelerate the project with installation and commissioning being completed in less than four months from project approval. What we did We were responsible for the full development of the site including environmental studies and planning support. During the 10-week construction programme we installed nearly: 17,000 PV modules 240 inverters 140km of cabling and associated HV works The funding for the project This was a funded project providing the project finance through a funding vehicle. Toyota receive all the electricity generated, and the funding vehicle takes any FiT revenue. The results The PV system is now providing 5% of Toyota s site energy consumption, helping to cut costs and reduce the carbon footprint. The installation has now been sold to Bluefield LLP, a specialist investor in UK renewable energy and Solar PV. 5% ELECTRICITY OFFSET WITH SOLAR 13

14 Glossary of terms AC electricity Alternating current electricity. Capital Sale A form of funding your Solar system where you purchase the system with capital outlay, resulting in maximum ROI and payback from your Solar investment. Carbon dioxide (CO 2 ) An odourless greenhouse gas which is harmful to the environment. Carbon footprint The amount of carbon dioxide and other carbon compounds emitted as a result of using fossil fuels. Consumption The amount of electricity your business uses. Crystalline silicon technology The most widely used, efficient and reliable photovoltaic technology available. Demand charges Utility charges based upon your highest peak interval of usage in any month. DC electricity Direct current electricity. Distribution board A component of an electricity supply system that divides an electrical power feed into subsidiary circuits and protects each circuit with a breaker. G59 Relay A device which monitors the quality and stability of grid electricity to ensure safe operation during faults. Generation meter A device that measures the amount of AC electricity that has been created and then passes it to the distribution board. Greenhouse gases Gases which contribute to the greenhouse effect by trapping infrared radiation. Grid electricity Electricity delivered to customers by the electric power transmission network (see National Grid ). Ground mount Solar installation Solar panels are installed in the ground either onsite or at another location. Installation plan A plan developed by your Project Manager to install your system without disruption to your operations. Inverters Devices installed with your Solar panels that convert DC electricity into AC electricity for your business to use. Inverter warranty A product warranty provided by the manufacturer, covering the inverters for 5 years (extended warranties are available). kw Kilowatt. kwh Kilowatt hour. Monitoring A service provided by Centrica Business Solutions in which our in-house teams monitor your system performance to ensure your Solar system is running smoothly and address any issues promptly. Mounting system Equipment used to fix Solar panels onto their installed surface. Mounting system warranty A product warranty provided by the manufacturer, covering the mounting system for 10 years. MW Megawatt. MWh Megawatt hour. National Grid A high-voltage electric power transmission network for delivering electricity to customers in the UK. O&M Operations & Maintenance. Centrica Business Solutions offers O&M packages tailored to your site needs. PV Photovoltaic. Panel warranty A product warranty provided by the manufacturer, covering the Solar panels for 10 years. Payback A calculation that estimates how long it will take for you to break even on your Solar investment. Performance guarantee A guarantee provided by the Solar panel manufacturer that ensures the panels will perform and degrade as designed by the manufacturer. Power Purchase Agreement (PPA) A form of funding your Solar system where you purchase the electricity generated from the system installed at your site at a set kwh price for the term of the contract. Product warranty A warranty provided by the manufacturer (see Inverter warranty, Mounting system warranty, and Panel warranty ). Project Manager Solar team member who will handle your project from start to finish. ROI Return on investment. Renewable energy Energy that is collected from resources which are naturally replenished, like sunlight, wind, and tides. Rooftop Solar installation Solar panels are mounted to the available Solar-optimal roof space of your facility. Site meter A device that meters export to the grid or reduction in purchased electricity depending on the site load. Solar/Solar panels Technology that enables you to generate your own electricity onsite by converting sunshine into electricity. Storage The process of storing Solar energy for future use, typically with an electro-chemical battery such as lithium ion. Sustainability The principle of supporting present and future generations by maintaining conditions where humans and nature can exist in productive harmony. System design The process of customdesigning a Solar system based on your facility and needs. Tier 1 components Equipment developed by manufacturers that are recognised by Bloomberg New Energy Finance as financially strong, experienced, worldwide brands. Workmanship warranty Centrica Business Solutions offers a two-year Turnkey defects warranty which ensures all equipment is installed to manufacturers specifications and all relevant codes and standards. 14

15 Useful contacts and further information Greentech Media (GTM) International Renewable Energy Agency (IRENA) British Photovoltaic Association (BPVA) SolarPower Europe Solar Trade Association Renewable Energy Association (REA) Department for Business, Energy & Industrial Strategy department-for-businessenergy-and-industrial-strategy Keep up to date on our blog Visit the Centrica Business Solutions Blog at to learn more about new ways of thinking about energy and technologies that help drive business performance and advantage in a changing energy landscape. 15 The information provided in this publication is for general purposes only and in no way does it represent an actual offer or explicit instruction on any matter, technical or otherwise. Centrica Business Solutions accepts no responsibility for any consequence of the information contained in this publication.

16 About Centrica Business Solutions In a changing energy landscape, we help our customers unlock the power of power to realise their ambitions. We re already helping more than 1,500 businesses around the world, from retail and manufacturing to health and education: Powering Performance: Improving business performance Powering Resilience: Enabling businesses to stay on 24/7 Powering Growth: Unlocking new sources of value and advantage for business We build intelligent, end-to-end energy solutions to power performance, resilience and growth for our customers through: Insight: Leveraging big data to help customers manage energy performance across all their equipment and devices Optimisation: Redesigning how businesses use energy to improve operational efficiency Solutions: Providing power sources and systems to help customers take control of their energy supply and manage demand Centrica Business Solutions is part of Centrica a global energy and services company dedicated to satisfying the changing needs of its customers. With the acquisition of Panoramic Power and ENER-G, we re helping more and more customers gain competitive advantage from energy, building intelligent end-to-end energy solutions that power performance, resilience and growth. Through Centrica, we also provide energy trading services and supply energy through British Gas in the UK, Bord Gais in Ireland and Direct Energy in the USA. Want to know more? Centrica Business Solutions is generating new opportunities across all types of industry. Find out how we can help you power new levels of performance today Centrica plc. Registered office: Millstream, Maidenhead Road, Windsor, Berkshire. SL4 5GD. Registered in England & Wales No SL UK-EN