Gregory Distribution expects to make almost £1m profit over 20 years from a new solar panel installation at its Cullompton distribution centre.
The 250 kWp solar PV system has been installed by SunGift Energy and Gregory is using most of the electricity generated for its chilled and frozen warehousing giving it a return on investment of 19.3 per cent.
Gregory’s operations director Paul Jeffersonsaid: “The decision to install solar panels was predominantly a financial one and the figures had to stack up.SunGift’s figures showed that we’ll pay back the price of the system in just over five years, followed by another 15 years of feed-in tariff payments, which presented a very strong case for going ahead.”
Using the electricity on site, rather than feeding it back into the national grid “allows us to make maximum use of the energy that is generated,” said Jefferson.
“It means that we get the maximum financial benefit and – as we’re producing our own electricity – we also reduce our reliance on our regular energy supplier.”
With electricity bill savings of almost £19,000 a year plus feed-in tariff income of up to £40,000 a year, it expects to make a 20 year profit of £906,000.
Gareth Walton, SunGift Energy’s business development manager, said: “Many distribution businesses are looking for ways to reduce their energy costs and become less reliant on their energy suppliers, and solar PV is the ideal solution, particularly as most have ample roof space on their warehouses to install the panels on.
“What’s more, as system costs have come down dramatically in the past few years and Feed-in Tariff rates have remained strong, five year payback periods are not uncommon.With a further 15 years of payments to look forward to and free electricity, distribution businesses really can make the most of the technology.”