For small and medium-sized enterprises (SMEs) across South Africa, power outages and load shedding have become all too familiar, wreaking havoc on productivity, operating expenses, profits and ultimately the financial viability of their businesses.
Leading energy solutions provider, EnergyOn, explains what SMEs can do to combat the rising costs of energy and running expensive diesel generators during frequent outages and load shedding.
Using a Diesel Generator to run your business during load shedding
“Running a diesel generator during load shedding or other power outages costs businesses over R10 per kWh of energy generated. “
“This is already over 3 times more expensive than Eskom or municipal electricity rates, even before taking into consideration the fluctuating fuel prices and double-digit annual electricity rate increases,” says Riaan Maree, EnergyOn’s Technical Director.
Businesses are increasingly looking for alternatives to diesel generators, which, despite lower initial costs, have proven to be financially unsustainable to use with South Africa’s almost constant load shedding.
Why businesses are switching to Hybrid or Battery Storage Systems
With the drastic cost reductions and technology advancements in battery storage technologies over the last 5 years, medium and large-scale commercial energy storage solutions have become affordable and viable solutions for businesses.
EnergyOn’s advanced battery backup energy storage solutions are powered by the latest LFP (LiFePO4) lithium batteries, capable of fast charging and discharging with over 6000 cycles and a 10-year warranty.
These solutions, including advanced inverter systems, enable businesses to install substantial energy storage capacities ranging from 100kWh to multiple MWh, effectively sustaining operations throughout load shedding and other outages without a diesel generator.
“Our adaptable approach and innovative finance, rental and Power Purchase Agreement options allow businesses to invest as budgets allow, with the option to expand to a completely off-grid system in the future,” says Jaco Maree, EnergyOn’s Business Development Director.
Make your existing grid-tied Solar PV System work during Load Shedding
Many businesses, over the last decade, installed grid-tied solar PV systems to save on their electricity costs. The expected CAPEX payback period for a grid-tied solar PV system at a business is typically between 2 and 4 years, making it an excellent ROI and investment.
Unfortunately grid-tied solar PV systems, by nature, cease operation during power outages and load shedding, greatly constraining their actual realised savings.
Expanding your existing grid-tied solar PV system with an EnergyOn BESS (Battery Energy Storage System) unlocks new dimensions of efficiency.
The EnergyOn BESS seamlessly continues to power your business during power outages, without the need to start your diesel generator, while your existing grid-tied solar PV installation can continue to generate electricity and also store excess power for use when solar power is not available.
“When the batteries start running low on cloudy days or extended power outages, our BESS systems can automatically start and stop your diesel generator to optimally recharge your battery, saving you on diesel and maintenance costs,” says Riaan Maree, EnergyOn’s Technical Director.
Other BESS advantages include load shifting, peak shaving and power factor correction, which can contribute to even more financial gains.
Improved cash flow and budget – Finance your Investment
A major barrier to accessing solar and battery systems for most businesses is the initial capital investment.
EnergyOn recognises this, which is why their flexible financing solutions are a popular option for businesses. These include:
- Power Purchase Agreement (PPA) – EnergyOn installs a full solar PV and backup power solution on-premise for the customer, who then buys energy at a fixed rate from EnergyOn, putting no liability on the Balance Sheet of the customer.
- Bank Asset-Based finance – A medium to long-term finance option where EnergyOn source and liaise with your bank of choice to help you secure a suitable financing facility.
- Rent-to-Own – A popular option where customers enter into a rental agreement with EnergyOn, with the option of buying the asset at the end of the term at the cost of one additional rental payment.
Botha Maree, EnergyOn’s Financial Director adds, “Past experiences have proven that monthly finance payments are offset, in some cases fully from inception, by the monthly energy savings (e.g. reduction of generator fuel and grid charges) realised after the implementation of an inverter and battery solution”.
Join other leading businesses in making the switch to cost-effective and reliable backup power solutions from EnergyOn, the trusted solar PV and backup power provider.