Is this a sensible investment?

Would your management consider a  £658,798 investment with a potential payback of  £33,633 per year?

Boost EV sustainability with solar power and battery storage (fleetnews.co.uk)

Is it only possible as a local government decision to spend taxpayers money?

Parents
  • I've not checked and won't comment on any numbers in detail, and have no information other than skimming the news article, but it is worth noting that it is a car park canopy on the council's flagship building. It might therefore have added value from the amenity to council building users. The cost might, or might not, include car charging facilities. Given the front-of-house deployment it is possibly also a statement of intent from the council. It also therefore no doubt increases the value of the site, having a book value. There may be budget that "needs" spending (unlikely in the current clime) and there may be tax relief on capital expenditure (I am not an accountant). From a cold-hard-cash perspective these things might well aid staff retention. And energy costs are not coming down in the long run.

    So while it might seem expensive as an investment, in crude numbers there is a 25%ish ROI over the design life, notwithstanding O&M as Roger G notes, and councils should be applauded for thinking long-term. Some of these wider benefits councils will rightly spend on with no expectation of a directly-linked return. I know my extension, which gives me a lot of amenity, definitely isn't generating me any money.

    I would expect the same logic would also apply to another large business able to think long term about its assets.

    I wouldn't expect a standard rooftop solar system to take so long to pay back; solar carports are not advertised as the cheapest solution as you get other benefits.

Reply
  • I've not checked and won't comment on any numbers in detail, and have no information other than skimming the news article, but it is worth noting that it is a car park canopy on the council's flagship building. It might therefore have added value from the amenity to council building users. The cost might, or might not, include car charging facilities. Given the front-of-house deployment it is possibly also a statement of intent from the council. It also therefore no doubt increases the value of the site, having a book value. There may be budget that "needs" spending (unlikely in the current clime) and there may be tax relief on capital expenditure (I am not an accountant). From a cold-hard-cash perspective these things might well aid staff retention. And energy costs are not coming down in the long run.

    So while it might seem expensive as an investment, in crude numbers there is a 25%ish ROI over the design life, notwithstanding O&M as Roger G notes, and councils should be applauded for thinking long-term. Some of these wider benefits councils will rightly spend on with no expectation of a directly-linked return. I know my extension, which gives me a lot of amenity, definitely isn't generating me any money.

    I would expect the same logic would also apply to another large business able to think long term about its assets.

    I wouldn't expect a standard rooftop solar system to take so long to pay back; solar carports are not advertised as the cheapest solution as you get other benefits.

Children
No Data