BeauClair - Solar Geyser and Lighting

Page 1

Solution Description BeauClair: Solar geyser and lighting solution

Prepared by : New Southern Energy Date : February 2011

Solution Description: BeauClair Page 2

Contents 1. Introduction .......................................................................................... 3

2. Energy Assessment .................................................................................. 4

2.1 Baseline energy costs .............................................................................. 4

2.2 Consumption patterns .............................................................................. 5

2.3 Cost breakdown ..................................................................................... 6

3.4 Solutions ........................................................................................... 7

3. Conclusion .......................................................................................... 11

Appendix 1 .................................................................................................. 12

A1.1 Step by step approach to effective energy management ........................................... 12

A1.2 Investment .......................................................................................... 14

Appendix 2 – Analysis and Projections .................................................................... 15

A2.1 BeauClair guesthouse .............................................................................. 15

Appendix 3 .................................................................................................. 18


Summary Recommended solution: Replace 4 electric geysers with solar geyser and replace all

lights with LED equivalants.

Total investment of R63,000 (ex vat) and after Eskom rebates

Payback period of less than 4 years Return on investment of 37%

1. Introduction

We would like to thank BeauClair guesthouse for the opportunity to visit your site and

present a brief solution document. This document discusses simple methods to reduce your current electricity bill by using renewable and efficient technologies. You will also benefit from marketing yourselves as ‘environmentally green’ and have a competitive advantage

over other guest lodges who do not move in this direction.

We have noted that you already use solar panels and a pump to heat your swimming pool. This would have been beneficial and adds value to your guests. This is a cost-effective way to heat your pool.

Through a quick site visit conducted on 10 February 2011, we have identified potential

savings for you through investing in solar geysers and LED lights. We have counted 3 *200 litre electric geysers for your guests and 1 * 150 litre geyser for

your kitchen.

We have noted that you have a number of inefficient lights. Your chandeliers hold incandescent candle bulbs and there is a chandelier in each guest room and throughout the

common areas of the guest house. There are few downlights throughout the common

areas. There are also a number of fluorescent tubes throughout the guest house.

The products and solutions we recommend last a long time. The solar geyser systems have an expected lifespan of 25+ years and the LED lights last between 30,000 – 50,000 hours. This is far longer than the systems and products you currently use.

There are also Eskom rebates if you install an approved solar geyser and follow the correct

protocols. In addition, there is a tax benefit you can gain through investing in solar geysers.

We discuss these points further in the document, with our suggested solutions and potential savings you would earn through investing in environmentally friendly

technologies.


2. Energy Assessment

It is essential when designing a solution to work from a base. You have to first know where you are before you can effectively plan ahead. We therefore break our analysis into the

following steps:

Baseline energy costs

Consumption patterns Cost breakdown

Energy solutions

2.1 Baseline energy costs

We received the municipal bill for December 2010. This is used to estimate the electricity costs over 2010 and projections into future years.

Charges (ex VAT):

Basic charge This is a fixed rand amount which is charged on each site. It is R738.21 in December 2010.

Demand charge This is a charge for the peak demand your site hits over the month (over a 30 minute period). It is measured in kVa and the charge per

kVa is R138.10 in December 2010.

Energy charge This is the charge for the energy used over the month. It is

measured in kWh and the charge per kWh is R0.3872 in December 2010.

Table 2.1.1 Baseline energy cost for 2010

Site Peak demand (kVa) Energy consumption (kWh)

Rand spend (incl Vat)

BeauClair 238 47,432 65,538 Notes:

• We used the actual bills for December 2010 and estimated usage for the remainder of the year • Peak Demand is the summation of all the Peaks for each month

• The Rand amount includes the fixed charge and Vat (14%)

A detailed breakdown of energy costs (over 2010) for the BeauClair guest house is provided in Appendix 2. You will notice that peak demand charge along is approximately

half your bill.

The baseline energy costs we have are at a high-level, summarizing the peak demand and energy usage over the month for each site. Without detailed analysis of usage across


various channels, we can only provide solutions based on the overall usage for the guest house.

2.2 Consumption patterns

We have made assumptions about your energy consumption over the year, based on our

experience and industry standards. We have assumed that your consumption is lower in

May, June and July in-line with your lower occupancy rates during the winter months.

The table below shows the energy consumption and seasonality for guest house, based on the electricity bill you have provided us and our estimations.

Table 3.2.1 Consumption pattern and seasonality for the guest house

Month Energy consumption

(kWh)

Seasonality

January 5 000 126%

February 5 000 126%

March 4 500 114%

April 4 50 114%

May 2 500 63%

June 2 500 63%

July 2 500 63%

August 3 000 76%

September 3 500 89%

October 4 500 114%

November 5 000 126%

December 4 932 125%

Total 47 432

A breakdown, in graph format is shown in Appendix 2.

We have assumed that the consumption pattern remains the same each year in the future.


2.3 Cost breakdown

We have been provided the electricity bills for December 2010. We use this information to create a base consumption profile and consumption pattern (shown above). The current charge for peak demand and energy consumption is used. We assume inflation in future

years to estimate the cost of your electricity in the future, assuming consumption profiles and patterns remain the same.

Inflation:

We know that Eskom is increasing tariffs to all users by 25% on 1 April 2011. The tariff increase will be the same in 2012, and has already been mention of a similar increase in

2013. We have assumed that tariff increases will be 10% per annum thereafter. You currently get charged for electricity by the Stellenbosch Municipality.

Stellenbosch Municipality increases their tariffs to you on 1 July each year.


3.4 Solutions

Proposed solutions: We propose two solutions:

1. Replacing all existing electric geysers with solar geysers, with back-up elements 2. Replacing all existing lights with LED equivalents

1. Solar geysers

You currently have three electric geysers for your seven guest rooms. You also have an electric geyser for your kitchen. We do not have the luxury of having actual consumption

per geyser and have to use industry experience in our estimations.

In a typical guest house like yours, the geyser will account for 30% - 50% of the total

electricity bill. We have assumed 40% in your case.

Investing in a solar geyser, you would use no electricity for hot water in summer and use a little in winter, due to cloudy days. We estimate a prudent savings of 60% on your hot water usage, which translates to 24% savings on your total kWh usage. Your peak demand

will also reduce, as the geyser elements will not be switching on at the same time. We estimate a 15% reduction on your peak demand kVa.

Both these assumptions are very prudent and we are confident your actual savings

experienced would be better. The total investment in one solar geyser is R20,500 incl VAT. The line items of this

investment for one solar geyser are shown below:

Line item Description Rand (ex

vat)

Solar Geyser 200 litre, non-

ferrous

Storage for water. It is non-ferrous because

it retains heat better, lasts longer (25+ years) and can handle poor quality water

R5,000

Collector set 24 tubes Tubes that go on roof to heat water through solar energy.

R6,000

Piping and lagging Pipes and frames needed to install geyser components

R1,500

PRV and vacuum breaker kit Needed to release pressure from geyser when needed

R750

Electrical timer Required for Eskom rebate. Can automatically switch geyser off during low usage times e.g. during day.

R1,250

Delivery and installation R3,500

Total (ex vat) R18,000

Eskom rebate R6,525 Actual investment(ex vat) R11,475


2. LED lighting solution

We have identified 3 types of lights used in your guest house, namely candle lights,

downlights and 4ft fluorescent tubes. We have based our calculation on the following estimated savings:

o LED down light = 58w to 5.8w = 90% advertised saving

o Candle bulb bayonet = 40w to 3w = 92% advertised saving o 5Ft T8-T5 flourescent conversion = 40 w to 25 w = 35% advertised saving

The LED lights have a much longer lifespan compared to the incandescent lights you use. Please see the lighting brochure attached, which highlights the other benefits of LED lights.

The tables below show the methodology used to calculating savings for different light types. We have used 100 lights in each table. You can scale this for the actual number of

lights you would use. We have assumed that the changing your lights will add a further 6% savings to your energy usage.

Table 3: Annual savings of using LED downlights

Savings on 100 normal dimmable down lights replaced with 100 LED dimmable down lights

Number Unit

Lights installed 100

Power usage old lights 58 Watt

Power usage new light 5.2 Watt

Savings per hour (100 lights) 5.2 K/watt hours

Hours per day 4 Hours

Savings per day 20.8 K/watt hour

Cost per KW hour (average over 2011,

2012 and 2013) 0.55 Rand

Savings per day 11.44 Rand

Savings per year(energy usage) R4,176 Rand

Demand savings per peak period 2 kVa

Peak demand charge (average over 2011,2012 and 2013)

197 Rand

Savings per month 394 Rand

Savings per year (Peak demand) 4,728 Rand

Total savings of R8,904 per annum. 100 LED lights cost R19,000 (excl VAT).


Table 4: Annual savings of using LED candle bulbs

Savings on 100 candle bulb bayonets replaced with 100 LED candle bulb bayonets

Number Unit



Power usage new light 3 Watt



Savings per day 14.8 K/watt hour

Cost per KW hour (average over 2010,

2011 and 2012) 0.55 Rand


Savings per year 2,971 Rand



197 Rand



Total savings of 6,699 per annum. 100 LED candle bulbs cost R19,000 (excl VAT).


Table 5: Annual savings of using T8 – T5 converters for florescent tubes

Savings on 100 conversion kits for Florescent tubes

Number Unit



Power usage after installation 25 Watt



Savings per day 6 K/watt hour

Cost per KW hour (average over 2010, 2011 and 2012)

0.55 Rand


Savings per year 1,205 Rand



197 Rand



Total savings of 5,932 per annum. 100 conversion kits cost R14,500 (excl. VAT).

Total solution

We have used the prices for four solar geysers and budgeted R17,000 for lights. We did not count the actual number and types of lights you have.

Four solar geysers will cost R46,000 (ex VAT) and after Eskom Rebate of R6,525 per

geyser. The total energy savings is then 30% from the combination of solar geysers and LED lights.

The savings on Peak demand is assumed to be 15%. We expect far higher savings, but have kept our assumptions prudent.

The total investment will be R63,000. Based on your current usage and tariff structure, this investment will pay itself off in less than 4 years at a ROI of 37%.

The breakdown of our calculations is shown in appendix 2.


3. Conclusion

Currently your cost of electricity is 38c per kWh. You also have a peak demand charge, which is the largest constituent of your electricity bill. Given the imminent increases in electricity, your current annual cost of R65,500 will increase to more than R260,000 per

annum in 2020. This is assuming your consumption remains similar to what it is now.

Investing in renewable energies and efficient technologies will reduce your impact to these increases and also improve your environmental image, whilst keeping you at a good competitive advantage over other guest houses and conference centres.

The solutions we have recommended are simple to implement and have a very attractive

payback period. The savings are based on one electricity bill and our assumptions. A detailed monitoring of your guest house will be required to give more accurate estimations. We still believe our figures and estimates are based on prudent assumptions and your

actual experience should be better.

There are good government incentives available currently such as the Eskom Rebate and a tax benefit of depreciating your investment over 5 years (instead of the lifetime of the

products). These incentives exist now and it is not known how long they will still be

available.

We hope this document provided a brief and succinct summary of the recommended solutions and estimated savings you will earn.

Please feel free to contact us if you have any further questions.


Appendix 1

A1.1 Step by step approach to effective energy management

The idea is to first reduce consumption to base levels and from there look towards more

advanced energy solutions.

Step 1: Changing Mindsets

We begin with the smallest step but possibly the greatest challenge namely, changing consumption habits and mindset. Educating and incentivizing staff to save energy is the first step to a total solution.

There are many innovative approaches that can be considered and there is no hard and

fast rule. We encourage clients to design their own strategies to specifically fit their staff and organization which they know best - NSE will be happy to help where possible.

In short, this is the most cost effective and immediate way to save and adds further benefit to solutions implemented.

Step 2: Reducing Demand and Saving Costs

Once mindsets are changed we look to existing equipment and how to optimize current systems.

The replacement of outdated products with new efficient equipment is an obvious choice. We understand there is a reservation to new technology but we urge clients to keep an

open mind and base decisions on results.

We look to maximize savings by minimizing use during peak hours. Points of highest consumption are back of house at all lodges with geysers being the main culprit and obvious replacements. Front of house, due to the sensitivity of guests experience and

expectations, we look to subtle changes in lighting by incorporating LED’s, effective geyser and pool pump timers and phased in replacement of more efficient air conditioners. Where

possible, we would also look to replace guest geysers provided this is simple process which would never effect guests.

Optimizing a system relates to small changes upfront, working toward a larger change over time. This change will allow one to start looking at more advanced energy options.

Step 3: Independent electricity generation & hybrid Systems (Optimum Solution)

Once consumption is minimized, we can start looking forward depending on the requirements and specifics of a site. Grid independence and hybrid solutions is the next

step.


By incorporating renewable energy and producing a large portion of your own electricity, one can significantly reduce dependence from the grid or in remote off-grid locations,

substantially reduce reliance on generators reducing spend on fuel and maintenance, increasing generator lifespan and providing a triple redundant system where lodges are

assured never to be without power such as that illustrated below.

1) Wind turbine (optional) 2) Grid tie inverter +Maximum PowerPoint tracking

3) Large grid tied inverter for common solar source. 4) Large solar array 5) Hybrid inverters

6) Deep cycle battery pack 7) Diesel Generator

The vision for this proposal is to strategically work towards a long term energy goal which will create independent and environmentally friendly lodges by developing a co-operative

internal mini-grid either on each site or for entire reserves.

The image above illustrates how by harnessing renewable energy a little bit at a time and feeding into the network, the system becomes more efficient depending on layout and distance. Please see www.sma.de/en/products/off-grid-inverters.html for a comprehensive

video explanation.


A1.2 Investment

Spending in renewable energy and energy efficient equipment is an investment and should

be viewed as such. Decisions are based on rand’s and cents savings. Costs of solar panels and energy efficient equipment have come down. The quality, efficiency and reliability have significantly increased over the past few years. The high Return on

Investment (ROI) and short payback periods have made this type of investment an attractive option.

We venture to say that nowhere else will you find a financial instrument that pays itself off giving this sort of return, guaranteed for an extended period of time not to mention the

positive environmental impact.

In all our analysis, we have focused on financial metrics. The financial investment, the savings per annum, payback periods and return on investment. You will notice that in

addition to improving the efficiency of your lodges, there is also attractive financial

incentive to implement green solutions.

There are environmental benefits, which are fast becoming mandatory requirements in many countries. An investment in our nature and ecosystem does not have direct financial rewards, but will improve the environment.


Current consumption (2010)

14%

Month Demand Energy Demand charge Energy charge Other Vat Total

January 22.00 5 000.00 2 430.56 1 548.80 590.57 639.79 5 209.72

February 22.00 5 000.00 2 430.56 1 548.80 590.57 639.79 5 209.72

March 22.00 4 500.00 2 430.56 1 393.92 590.57 618.11 5 033.16

April 22.00 4 500.00 2 430.56 1 393.92 590.57 618.11 5 033.16

May 15.00 2 500.00 2 430.56 774.40 590.57 531.37 4 326.90

June 15.00 2 500.00 2 430.56 774.40 787.85 558.99 4 551.80

July 15.00 2 500.00 3 038.20 968.00 738.21 664.22 5 408.63

August 17.00 3 000.00 3 038.20 1 161.60 738.21 691.32 5 629.33

September 22.00 3 500.00 3 038.20 1 355.20 738.21 718.43 5 850.04

October 22.00 4 500.00 3 038.20 1 742.40 738.21 772.63 6 291.44

November 22.00 5 000.00 3 038.20 1 936.00 738.21 799.74 6 512.15

December 22.00 4 932.00 3 038.20 1 909.67 738.21 796.05 6 482.13

Total 47 432.00 32 812.56 16 507.11 8 169.96 8 048.55 65 538.18

60%

70%

80%

90%

100%

110%

120%

130%

-

1 000.00

2 000.00

3 000.00

4 000.00

5 000.00

6 000.00

Se

aso

na

llit

y o

f e

ne

rgy

usa

ge

(k

Wh

)

Ra

nd

sp

en

d (

Ex

Va

t)

Office: Consumption breakdown and seasonality (2010)

Demand charge Energy charge Other Seasonality (kWh)

Appendix 2 – Analysis and Projections

A2.1 BeauClair guesthouse


Solution: Installing 4 solar geysers and replacing all your inefficient lights with LED equivalents.

Projection to 2020

Year Demand Energy Demand chage Energy charge Other Vat Total

2010 264.00 47 432.00 32 812.56 16 507.11 8 169.96 8 048.55 65 538.18

2011 264.00 47 432.00 41 015.70 20 633.89 9 965.84 10 026.16 81 641.58

2012 264.00 47 432.00 51 269.63 25 792.36 12 457.29 12 532.70 102 051.98

2013 264.00 47 432.00 64 087.03 32 240.45 15 571.62 15 665.87 127 564.97

2014 264.00 47 432.00 74 768.20 37 642.50 18 166.89 18 280.86 148 858.45

2015 264.00 47 432.00 82 245.02 41 406.74 19 983.58 20 108.95 163 744.29

2016 264.00 47 432.00 90 469.53 45 547.42 21 981.93 22 119.84 180 118.72

2017 264.00 47 432.00 99 516.48 50 102.16 24 180.13 24 331.83 198 130.59

2018 264.00 47 432.00 109 468.13 55 112.38 26 598.14 26 765.01 217 943.65

2019 264.00 47 432.00 120 414.94 60 623.61 29 257.95 29 441.51 239 738.02

2020 264.00 47 432.00 132 456.43 66 685.98 32 183.75 32 385.66 263 711.82

Savings in year 1 (2011)

Current Savings % After solution Savings

264.00 15% 224.40 39.60

47 432.00 30% 33 202.40 14 229.60

41 015.70 34 863.35 6 152.36

20 633.89 14 443.72 6 190.17

Tax benefit 3 528.00

15 870.52

Energy Consumption(kWh)

Energy spend (Rand)

Demand (kVa)

Demand spend (Rand)


Projected Payback and ROI

Year Total rand Investment Savings Cumulative savings

2010 65 538.18

2011 81 641.58 -63 000 15 870.52 -47 129.48

2012 102 051.98 18 956.15 -28 173.33

2013 127 564.97 22 813.19 -5 360.14

2014 148 858.45 26 035.98 20 675.84

2015 163 744.29 28 286.78 48 962.62

2016 180 118.72 27 234.65 76 197.27

2017 198 130.59 29 958.12 106 155.39

2018 217 943.65 32 953.93 139 109.33

2019 239 738.02 36 249.33 175 358.65

2020 263 711.82 39 874.26 215 232.91

Payback 3 to 4 years

ROI 37%


Unit

Climate data

location

Project

location

Latitude ˚N -34.0 -34.0

Longitude ˚E 18.6 18.6

Elevation m 42 42

Heating design temperature °C 5.0

Cooling design temperature °C 29.0

Earth temperature amplitude °C 15.2

Month

Air

temperature

Relative

humidity

Daily solar

radiation -

horizontal

Atmospheric

pressure Wind speed

Earth

temperature

Heating

degree-days

Cooling

degree-days

°C % kWh/m²/d kPa m/s °C °C-d °C-d

January 20.4 71.0% 7.72 101.1 6.6 25.9 0 322

February 20.4 72.0% 7.06 101.0 6.5 25.5 0 291

March 19.2 74.0% 5.86 101.2 5.4 23.4 0 285

April 16.9 78.0% 4.17 101.3 4.4 19.8 33 207

May 14.4 81.0% 2.97 101.5 3.8 16.3 112 136

June 12.5 81.0% 2.44 101.8 4.0 13.1 165 75

July 11.9 81.0% 2.64 101.8 4.2 12.4 189 59

August 12.4 80.0% 3.39 101.8 4.4 13.6 174 74

September 13.7 77.0% 4.72 101.6 4.9 16.1 129 111

October 15.6 74.0% 6.08 101.5 5.6 19.6 74 174

November 17.9 71.0% 7.47 101.3 6.2 22.7 3 237

December 19.5 71.0% 7.89 101.1 6.1 24.8 0 295

Annual 16.2 75.9% 5.19 101.4 5.2 19.4 879 2 267

Measured at m 10.0 0.0

Appendix 3 Climatic data for Cape Town

Documents

BeauClair - Solar Geyser and Lighting