FIT (feed-in tariffs) for business purpose?

Sustainable Development Director of Wiles Greenworld, London office Supplies Company thought, finally subsidies to support renewables until such time as a credible carbon tax was introduced. However the commercial evaluation of the FIT (feed-in tariffs) did not match Toby Robins initial enthusiasm.

Financials numbers looked very appealing to begin with, with a 3.5Kw PV system costing £15,000 producing almost £25,000 from the FIT, and saving the company just over £10,000 on electricity expenditure over the 25 year period. This is a £35,000 return on investment of £16,500 including allowing for a replacement inverter halfway through its projected life.

A concern of Toby Robins was that the £15,000 would have been worth £84,000 if put into the bank 25 years ago. Another concern arose because of the tremendous ongoing investment in improving the efficiency and reducing the costs of PV Panels. For example, if a roof is covered by panels now, in five years time will it become obsolete when current models might be producing 10 times more power at a tenth of the price?

As a company, Wiles Greenworld have a high profile promoting sustainably within the office supplies industry and win a significant proportion of business from organisations that recognise the lack of carbon price hides the true cost of energy.

The FIT guarantees that Wiles Greenworld will not lose money and reassures the fact that the company won’t make as much if money was invested elsewhere in areas such as resource or investing money in the bank.

The plans for the installation of a 3.5Kw system will go ahead, which leaves Wiles Greenworld with sufficient roof space for further phased installations as technology evolves while giving a clear message that the London based office Supplies Company supports a move to renewables and is ethical in all its business operations.

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