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Energy Savings Maintenance Saving Financial Model Tax Financing

Case Study in a Cold Storage Environment of SZL340 lighting systems versus 400W metal halide light fittings

Costing   % of Lights # of Lights  
Number of Lights   58% 87  
Cost Per Light Unit including installation ex VAT £760      
Total Contract Cost ex VAT       £66,120
       
Existing lighting No of lamps on Wattage    
Number of 250W metal halide lights 0 290    
Number of lamps on at 400W 150 480    
Total electrical consumption, kWh   72.0    
SZL Lighting        
Percentage of Lamps actually on 60%      
Number of lamps on  52 342    
Total electrical consumption, kWh   17.9    
Hours per day   24    
Days per week   7    
Days per year   365    
Total hours lamps on / Yr   8,760    
 

Lighting Consumption

  Prior New Saving
Existing, kWh / Yr   630,720 156,387 474,333
Price per kWh £0.06      
Cost Per Year   £37,843 £9,383 £28,460
       
       
Refrigeration Savings   Prior New Saving
Metal Halide Heat output as % of Total Power Consumed 71%      
Heat generated by lamps inside cold space, kWh/Yr   447,811 2,221  
Residual Heat - IR from SZL System 2%      
Coefficient of Performance of Refrigeration Equipment 1.3      
Energy to remove heat from existing lamps, kWh/Yr   344,470 1,708 342,762
Cost Per Year   £20,668 £102 £20,566
       
Total Power Comsumption   Prior New Saving
Total Consumption in kWh/Yr   975,190 158,095 817,095
         
saving in GBP       £49,026
       
Maintenance Savings   Prior New Saving
Lamp Life, Hours   10,000 20,000  
Lamp Life, Years   1.1 3.8  
Number of Lamp Changes / year   131 14 118
Hire of Scissor lift £400 £0    
Frequency of Scissor Lift Hire 0      
Cost Per Lamp   £14.50 £34.00  
Man Hours Per Lamp Change   0.35 0.17  
Cost Per Man Hour £30.00      
Cost Per Lamp Change   £25 £39  
Total Maintenance Savings / yr   £3,285 £535 £2,750
         
Climate Change Levy        
Annual Climate Change Levy / kWh £0.00485 £4,730 £767 £3,963
       
Enhanced Capital Allowance Scheme        
Corporation Tax Rate       28%
Capital Allowance       100%
ECA cash flow advantage       £18,514
 

Cash Flow Calculations

Year1 Year2 Year3 Year4 Year5
Annual Electricity Savings 49,026 49,026 49,026 49,026 49,026
Loan Payments 0 0 0 0 0
Climate Change Levy Saving 3,963 3,963 3,963 3,963 3,963
Capital Allowance  18,514 0 0 0 0
Savings on Maintenance 2,750 2,750 2,750 2,750 2,750
Net Positive Cash Flow to Business £74,252 £55,739 £55,739 £55,739 £55,739
         
Estimated Payback Period (years) excluding financing payments       0.9
         
Estimated savings over five years     £297,207

 

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Subzero Lighting Limited

Registered Office: 49 Sandy Lodge way, Northwood, Middlesex HA6 2AR, UK

Registered in England Company Number 07017416 VAT Registered 979470754