CEO at TouchLight Innovations
Let’s take a look at a small commercial site in California. This site pays an average of $0.18 /kWh for electricity and consumes an average of 400,000 /kWh per year. This office building primarily operates during the day and has an HVAC unit and one LVL 2 EV charger located at the site.
Here is the projected energy usage model for this site
For this location there is ample roof space and minimal shading which enabled us to design in a 285 kW solar system for this location.
After running the site layout through design software we were able to come up with the following annual estimated performance of 438,395 kWh /Year. Which should comfortably offset 100% of this property’s energy needs annually.
Quotes received from other providers for the same system size came in as low as $2.05 /Watt for this 285 kW solar system.
This brings the total to $810,980 [$567,686 with 30% ITC] to have this site permitted, installed and activated. Which yields an estimated 8 year payback period for this system
On top of that you pay an on going annual monitoring and O&M fee which comes to $3,000 /Year
Of the providers asked to quote the site none were willing to provide a PPA for a system below 500 kW in size.
To run an example PPA offering:
This brings your total out of pocket expense on a PPA between $1,052,148.00 – $1,315,185.00 over the 20-year period. Your monthly expense for this solar system would be between $4,384 – $5,480.
Purchase Option Negatives:
PPA Option Negatives:
Overall between a PPA and purchasing – purchasing the hardware is the better option for commercial property owners as financing terms currently are structured like a mortgage which is limiting and not the ideal way for owners to adopt renewables. Nonetheless, making a heavy upfront purchase puts property owner in a position requiring a heavy amount of research and due diligence which can take a lot of time away from other critical business efforts and property upgrades that may have better opportunity costs.
As a property owner you want the following resolved:
We resolve all the above concerns with the way we at TouchLight have structured our offering
On every TouchLight Subscription:
To summarize how this subscription helps you:
In conclusion if you are looking into renewables or have been deterred by an industry that has designed its offering to maximize tax incentives or building utility scale power plants only then you can see that a subscription from TouchLight can be a viable alternative to help maximize the benefit of implementing an energy generation technology like solar.
This is primarily because you spend less money with TouchLight as you are extended wholesale level rates, given access to full building energy automation software free with your subscription, access to upgrades and modifying your system overtime and highly flexible contracts.
Overall, if you are evaluating options – purchasing will always provide the greatest economic return as it gives you the opportunity to tap into various tax incentives that are available in this industry. California happens to be one of the leaders in providing state level renewable energy incentives and also is a prime location to begin your journey toward getting your energy consumption as low as possible while also working toward increasing your property’s energy resilience.
If you are a property owner and curious how TouchLight can help you, feel free to contact our technical sales team so we can get you a quote and site evaluation done. This way you can see what your property should be getting in terms of a solar or solar + storage system to meet your specific energy goals. It will also allow you to set a benchmark for what to expect.