Partner Article

Opus goes green to slash energy costs

TWO award-winning entrepreneurs are using their own headquarters to demonstrate to other businesses the considerable financial and energy-saving benefits of solar panels.

Gavin Richardson, MD of Opus Building Services, and Chris Cassells, MD of Opus Green, have fitted 80 panels to the Opus HQ at Boldon Business Park.

The panels, 1.7m long and about a metre wide, were put up in less than two days and as Chris explained, will save a huge amount in energy bills: “The estimated direct electricity saving for Opus Building Services will be a staggering 70 per cent reduction on their 2014 bill.

“The installation cost for the solar pv system – which will generate 15,540 units of electricity a year – was £20,352, paid for through an asset finance deal over a five-year term. Whilst there is a capital cost to the system, the reality is the income it will generate and the energy savings it will make over the five years will effectively make it self-funding.”

After the initial five-year loan period the combination of income and energy savings will generate in excess of £50,000 for Opus or £3,750pa as a conservative estimate, for the remaining 15 years of a 20-year plan. This will help future proof the business against rising energy costs and slash the company’s carbon footprint.

“Furthermore, we will receive £5,604 tax relief in year one as the expenditure is 100 per cent tax deductible,” explained Chris.

“And then, of course, there will be an immediate carbon reduction – up to eight tonnes a year – and a cut of the company’s carbon footprint, which is of growing importance for many businesses given increasing taxation on carbon emissions,” he added.

“Some business owners or FDs are concerned about realising a financial benefit in the short term but we can prove a system can be self-financing in five years and the initial capital outlay negated quickly by the savings made from day one. Many businesses don’t realise the panels are also a standalone asset that can be sold with a building or lease if the company decides to relocate.

“Planning is covered by permitted development rights, and there is a 25-year performance guarantee on the solar panels and inverters.”

Gavin, who launched Opus Green with Chris in 2010, said he didn’t have to think long about fitting the solar PV panels: “We’ve had a huge, immediate saving to our electricity bill and we’re also drastically reducing our carbon footprint, so as a business owner there wasn’t too much to think about really.

“There were no upfront costs, apart from the initial set-up £250 fee, and we estimate the net additional cost to the business will be just about £187 per month in year one. This will continue to reduce over the five-year loan period due to rising electricity prices and RPI linked payments, and then we’ll be into profit.

“So we’re future-proofed against rising electricity costs and any potential carbon taxes or levies and can look forward to an additional income stream.”

The solar PV system is ideally suited to building owners, landlords or leaseholders with a minimum 25-year lease, and works best with building south, south east or south west facing.

Buildings must be able to achieve a band D, or better, energy performance certificate with the addition of the solar system. The system can typically deliver an improvement of one to two grades in energy band ratings for a building.

Opus Building Services are a leading contractor of mechanical and engineering services, working throughout the region and across the UK.

Opus Green are green energy experts, established to provide businesses and homeowners with advice and guidance on reducing carbon emissions and cutting their fuel bills.

For more information, call Opus Green on 0191 2705124 or go to www.opus-green.co.uk

This was posted in Bdaily's Members' News section by Opus Building Services .