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Edmo Limited

Commercial grant provides £40,000 towards Solar PV

Edmo was established over 40 years ago and provides a huge variety of customers and markets with product supply solutions using aluminium extrusion and a wide variety of other components, finishing and assembly capabilities.

Edmo’s Ross-on-Wye facility is a manufacturing site and like many in the engineering sector they require a lot of electricity to power their machinery as well as run everyday items such as lighting and computers. Their 6 day operation requires in excess of 200,000 units of electricity per annum at an annual cost of £28,000.

Continuously looking to reduce their environmental impact, Edmo have undertaken numerous carbon saving strategies. These include installing low energy compressors, energy efficient powder coating ovens, LED lighting upgrades, and now Solar PV.

50% grant funding

MarRE (Marches Renewable Energy) is a renewable energy grant available to SMEs located in the Marches areas of Herefordshire, Shropshire and Telford and Wrekin.  The MarRE grant is straight forward and offers eligible applicants a 50% grant towards the cost of installing renewable technologies, with Solar PV being one of them.

Through their other energy reducing investments, Edmo were already aware of the European funding available through MarRE. A successful application was made and the grant provided £40,000 of funding towards the installation of solar PV.

Reducing environmental impact

Their Solar PV will provide them with 121,000 kWh of clean renewable electricity helping them avoid over 28 tonnes of CO2 emissions annually. As well as the environmental savings any investment must make commercial sense. Edmo will see savings in excess of £570,000 over the next 25 years.

1/3 of annual electricity needs delivered by solar

Solar provides the highest financial returns when a business consumes the majority of generation on-site.  Any unused electricity can be sold to the grid at around 5p per unit. Sometimes the local grid infrastructure imposes an export limit which can restrict the amount of electricity exported after on-site consumption. This was the case at Edmo where they had tight restrictions on what they could export; so on a Sunday (when they are not operating) particularly during the summer months, a load limiter has been installed to ‘turn the power down’ and not overload the grid.  Whilst this means a slight loss of the 5p/unit export revenue for Edmo, the overall commercial returns still look great, and just over 1/3 of Edmo’s annual electricity needs are met with their own low cost renewable energy right from their rooftop. 

Proactive and flexible

"With the help of Mypower, and having previous experience of grant applications, we were able to secure funding without much difficulty that equated to half of the capital cost of the installation.

Mypower proved themselves to be proactive and flexible in meeting our requirements and also helped with the subsequent arrangements for the export of surplus electricity generated by our PV"

Paul Rhodes, Finance Director, Edmo Limited.

Key facts and predictions

The benefits from solar PV were impressive without a grant but even more so with...

 

Without grant

With Grant

kW installed by Mypower 130.98kWp (403 panels)
Units of energy produced per annum 85,445 kWh
First year income & savings £10,352 £14,886
First year ROI 12.7% 25.4%
25 year income & savings after indexation 291,919
Equivalent purchase price of electricity over 25 years including O&M costs 4.32 p/kWh 2.87 p/kWh
CO2 emissions avoided per annum 27.8 tonnes
Payback before finance, tax and capital allowance benefits 7.9 years 3.9 years
Solar PV electricity savings compared to grid supplied electricity at 15.7p/kWh 69% savings 79% savings

Paul Rhodes, Finance Director, Edmo Limited.

"Mypower proved themselves to be proactive and flexible in meeting our requirements and also helped with the subsequent arrangements for the export of surplus electricity generated by our PV"