How can a business fix electricity prices? invests in solar power plants

With the sharp rise in energy prices in the world, more and more people are looking for ways to reduce energy bills. Swedbank experts calculate that investments in own solar power plants can pay off for Lithuanian companies faster than in 4 years.

The sharp rise in electricity prices over the past six months has led to interest in solar power plants among both residents and businesses. According to our calculations, after setting up a solar power plant for your business needs, its payback period is from 4 to 8 years. Still, the main advantage of solar power at this time? it is an opportunity to fix the price of electricity and have stable operating costs related to it for the next two decades, says Rasa Verkauskait-Kazanskien, Swedbank’s small business client and head of the marketing department. According to her, favorable conditions have been created in Lithuania to develop own electricity production capacities. Therefore, companies, having directed their investments accordingly, get an effective way to manage the risks of electricity price growth.

Investment exceeds expectations

Ugint, a small community located in the Kretinga district, engaged in the production of cosmetics and food supplements, built a 15 kW solar power plant in the middle of last year and received almost 11 thousand from Swedbank. euro loan According to Virginijus Uginta, the director of the small association, it was already clear then that this is a sufficiently attractive investment that can pay off in a reasonable time. We have three buildings in our company, we use electricity to fill them, and it is also needed for various production processes. We decided to build our own solar power plant at the beginning of last year. Getting the permit and building the power plant took about half a year, and we started producing our own electricity last summer, says V. Ugintas. The solar power plant was built on the plot behind the building, and although, as V. Ugintas notes, it did not particularly decorate the landscape, it provided the opportunity to place the solar modules in the optimal direction and angle of inclination. This made it possible to achieve that the maximum amount of sunlight will be converted into electricity. According to him, the decision to invest in his own solar power plant exceeded his initial expectations. First of all, the solar power plant made it possible to mitigate the sharp rise in electricity prices, and secondly, due to the prevailing sunny weather in the spring, it produced much more electricity than was planned. These factors ultimately contributed to a better return on investment.

There are other solutions available to us

Currently, people in Lithuania have very wide opportunities to start using solar energy. The simplest bdas? to set up a solar power plant on the roof of the building belonging to the company or on the plot below. If there is no such possibility, then you can consider purchasing part of the electricity in a remote solar power park. As R. Verkauskait-Kazanskien observes, the payback period of solar electricity probably mostly depends on the chosen method of setting up solar electricity and the specifics of electricity consumption. We calculate that the solar power plant can pay for itself in the shortest time if it is installed on the roof of the building or on the plot and all the electricity is consumed locally. In this case, its payback reaches 5 years, and after receiving the support of the Environmental Project Management Agency, it takes only 3 years. The return on investment is 7.7 and 9.7 percent, respectively, according to Swedbank’s representative. When a company sets up its own solar power plant, not all of the electricity is consumed for its own needs and part of it is given to protect the grid, its payback time is about 6 years or 4 years with support, and the return on investment is 6.8 and 8.7 percent, respectively. in this case, the payback period is extended by the applicable electricity conservation fees. At that time, the electric power investment in the remote park should pay for itself in 8 years or 6 years with support, and the return on investment is 5.4 and 6.8 percent, respectively. In this case, the electricity payback is extended by the applicable access and electricity transmission fees. According to the representative of Swedbank, if the mon solar power plant decides to borrow, it can take advantage of special financing conditions, and the payback of the investment in this case is extended by only about one year.

Although most of us have electricity

The owners of Ugint are thinking about the purchase of additional solar power, because currently they do not meet all their business needs. The main limitation in the preparation of the solar power plant was the power of the electrical conductor, which at that time did not allow the construction of a larger power plant. Now we are looking for solutions that will allow the expansion of the power plant, because we already expected its benefits, says V. Ugintas. Although the main motive for investing in solar power was based on its profitability and the possibility of long-term savings, V. Ugintas also mentions the aspect of sustainability, which gives additional value to the products produced by Ugintas. We produce natural cosmetics and detoxified food supplements, we plan to start producing medicinal teas, we emphasize naturalness in our activities. Many people say that the electricity needed for the production of things is obtained in an environmentally friendly way, says V. Ugintas. According to the information of the Ministry of Energy of the Republic of Lithuania, there are currently about 1.1 thousand solar power plants in Lithuania. moni As Ugints experience shows, this is a value-creating solution for small businesses as well, especially if a larger amount of electricity is consumed in our activities.

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