Coveya Ltd - leading conveyor manufacturer removes 75 tonnes of CO2 for a cleaner future
For 30 years Coveya have manufactured and supplied modular conveyors that support a vast range of applications from demolition to farming. Coveya are based in Bristol and were spending £30,000 per year on their electricity bills. With high electricity usage and a large double-pitched warehouse roof, their site was ideal for solar PV, which would help to reduce their electricity costs.
Mypower were one of four solar PV installers to quote for providing solar panels to Coveya. After listening to the client's overall reasons for investment, we put forward three options to demonstrate the returns across a spectrum of system sizes. No other contractor had suggested looking at a larger than necessary array utilising all rooflines. Coveya could see the export income as a valuable commodity right now but also the opportunities a larger system provided for the future.
Key facts and predictions with no subsidy or grants
- 251.1 kW (837 panels) - installed by Mypower.
- 226,758 kWh - units of energy produced per annum.
- £21,762 - projected first year income and savings assuming 45.2% of electricity used on site.
- 14.5% - projected first year return on capital invested, before capital allowance benefits.
- 4.31 p/kwh - equivalent forward purchase price of 5,222,146 units of electricity over 25 years including estimated O&M costs, and excluding potential Annual Investment Allowance tax benefit.
- 75 tonnes - CO2 emissions avoided per annum.
- 6.9 years - system payback before finance, tax and capital allowance benefits.
- £881,374 - total projected income and savings over 25 years less capex of £150,000 = £731,374 margin.
- 71.6% - saving from solar PV electricity compared to grid supplied electricity at 15.17 p/kWh.
- In the first 6 months of operation the system has produced 72,889 kWh (5% more than Mypower's predictions in their initial quote).
Savings and income
Mypower was awarded the contract and, in September 2019, we installed 837 solar panels. The 250kW system would provide 45% of Coveya's energy requirements - the remainder to be sold to the grid to supply other local businesses and homes with clean renewable energy, while providing an annual income of nearly £7,000. Together, the total annual income and savings for Coveya following their solar PV installation is in excess of £22,000.
Currently, 55% of the electricity produced by the solar installation is sold to the grid at around 5p per unit. While this is generating an income for Coveya, the best is yet to come. With the impending transition to Electric Vehicles and Coveya's planned business growth, their solar electricity consumption is expected to increase and, therefore, they will export less. This means future energy needs will be met by the solar energy at the equivalent price of 4.31p per unit, rather than selling their solar electricity for 5p and buying it back from the grid at 15p! Savings can only improve.
What's more, as the cost of battery storage continues to fall, while grid electricity is predicted to rise by 30% in the next 5 years, it will become commercially viable for Coveya to add a storage option which will increase their renewable energy usage further.
No disruption and great consideration
"Coveya Ltd commissioned Mypower to design and install a 251.1kWp solar PV system and I can say we are very impressed with the service provided and the installation. Mypower did everything they said they would do and when they said they would do it and in particular they worked to install the system alongside our busy production operations with no disruption at all and great consideration. I'd be happy to recommend Mypower to any business wishing to install Solar PV."
Gareth Herbert, Managing Director - Coveya Ltd