A significant solar project aims to take the heat out of energy costs at a Scunthorpe steel business.
The six-figure, 350-panel installation at SC4 Ltd on Midland Road is expected to pay for itself within five years because of energy cost savings and monies generated by its feed-in tariff to the National Grid.
The complex £118,000 project was handled by Brigg firm Lincs Eco Energy Ltd, with key financial advice from RNS Chartered Accountants, Oswald Road, Scunthorpe.
Finance director at SC4 Karen Eddy, who jointly owns the business with husband Shay, was pleased with the impressive result.
“I’m pro renewable energy and it’s something we’ve looked at for some time,” she said.
Finance director and SC4 joint owner Karen Eddy with (left) Rob Smith, of RNS Chartered Accountants, and Darren Adams from Lincs Eco Energy.
“We contacted Steve Abbott at Lincs Eco Energy, as well as other companies.
“It became apparent from the outset he was very passionate about renewables, it was a local business and he knew what he was talking about.
“Darren Adams, who works with Steve, then put a lot of work in, looking at our usage and the pattern through the year.
“They came back with a system to suit our requirements.”
SC4, originally established in 1983, is a “one-stop shop” steel service centre employing 26 people.
Its core business is structural steel used, for example, in car parks. It has a full fabrication department and also undertakes rectification when steel needs to be straightened after leaving the rolling mill.
Its annual energy costs run at between £45,000 and £50,000.
“Our commercial energy costs are high and, each time we renew a contract, go higher, so there was a sound business case for looking at solar,” said Karen.
The project had been a little rushed in the end because of the reductions to the feed-in tariffs, announced by the Government in January.
“It was completed in time to enable us to get the maximum benefits. We’re delighted by the end results and we think, conservatively, it will pay for itself inside five years,” said Karen.
“I’d also like to thank Rob Smith, our accountant at RNS, for his assistance during the project.
“He helped review the timing of the capital investment and demonstrated the tax efficiencies and allowances that could be claimed.
“We’ve been with RNS for many years. The advice we receive from Rob is always second to none.”
Darren, at Lincs Eco Energy, said it was a challenging project but, ultimately, beneficial to all parties.
“It is a big project,” he said. “Each of the 350 panels are rated at 255W, giving an overall system size of 89.25kWp and an estimated generation during its first year of 72,000kWh.
“The estimated annual combined financial benefit - not having to buy electricity from the grid and income from the feed-in tariff - is £14,000 per year.”
There had been a number of challenges.
“The panels needed to be mounted on a frame built above an asbestos roof.
“A structural survey had to be undertaken to ensure the building frame was structurally sound.
“The presence of old asbestos meant temporary safety netting had to be erected and movement across the roof was limited to operatives keeping to scaffold boards.
“Nearly two tonnes of moss build up on the roof had to be removed before work commenced.
“Building the framework for the panels to be clamped to required us to bring in an external asbestos handling company who safely drilled more than 800 holes through the roofing sheets.”
The project was completed in 10 working days.
“We also helped the customer secure a better deal on the additional top-up electricity they have to purchase from the grid,” said Darren, whose firm specializes in all kinds of renewable technologies apart from wind turbines.
“Now is a very good time for businesses to look at switching gas and electricity supplier and our business is ideally positioned to facilitate this.
“Although the feed-in-tariff has been cut, Solar PV is still very viable.”
Rob, from RNS, was most impressed by the installation.
“The figures made the project very worthwhile and it’s also enabled SC4 to benefit from capital allowances,” he said. “I’m delighted to have played a part in securing a win-win deal for two local businesses.”
Rob can be contacted at RNS Chartered Accountants on 01724 842713 or via www.rnsca.co.uk while Lincs Eco Energy can be contacted on (01652) 653863 or found at www.lincseco.co.uk