Gorhams First Solar Phase Complete
To cut down on initial investment costs, Gorham’s chose to implement their new solar system in phases and will continue to build upon the system until it is a total of 160 kilowatts.
Upon completion, the 160 kilowatt system will save Gorham’s approximately $105,0001 a year on electricity bills based on the current cost of electricity.
In addition, over the 25-year warranty period the photovoltaic system will save almost 4.5 million pounds of carbon dioxide or CO2 emissions from entering Bermuda’s atmosphere. It’s the emission of CO2 that is a major contributor to global warming.
Pictured below: Henry Durham, Director, Gorham’s True Value Home Centre; Tim Madeiros, founder and CEO, Alternative Energy Systems; Rod Farrington, Director.
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Is this going to help reduce our power bills? I seriously doubt it…
It’s going to save Gorham’s money. If you want to save some money on your electricity bill, you will have to put solar power panels on your own house. Some people can be so selfish.
Cool photo Bernews. Especially with Belco in the background spewing its fumes into the atmosphere..
Agreed. Very interesting contrast.
We thought it was a very nice image ourselves actually. Wasn’t us perched on Gorhams roof getting it however, AES provided it. Definitely done by a very good photographer…
The photograph was taken by Ernest McCreight Photography.
LOL what is with the HDR Image? LOL just a little over the top ya think!
Installing Solar here in Bermuda costs almost 3x what it does in the USA – interesting to see that Gorhams will save $100 000 a year – but they dont say what their investment was… I had a quote for an appox 8Kw system for my house that was in excess of $75 000.00 and which put my ROI out at 11 years or so… ridiculous!!!
@ Still Larnin, installation costs more here (if done correctly) because we have to attach to a Bermuda slate roof rather and just drill through a a tar paper roof as they do in the US. There is also shipping and wharfage and the cost of supporting Bermudians and their families. For your FYI the payback on this system is approx 7 years. The ROI which comes into effect after payback is well over 200%. I hope this has helped you to “Larn” a little more. contact me if you would like to talk more.
Tim
@ Tim – My BELCO bill is about $300 a month on average. So we are looking at about $3600 a year. So you are telling me you have a system for my needs for $25,200($3600 over 7 years), plus installation. I already know the answer, but still looking forward to your response
@ Askin. your calculations assume that in 7 years your bill will still be $300 – that’s incorrect, so you have to build in an inflation factor for belco rate + oil. secondly i stated that Gorham’s installation has a 7 year payback; basic economics dictates that there are “economies of scale” between commercial and residential so your payback for a 5kW system might be pushed out to 9 years max, depending on the difficulty of the install.
Lets take this a bit further though, with financing provided through my company, you could have a system installed for no money down that produces $300 of electricity per month (at todays rate) but costs you less than that in loan payments, so from the first month you are cash flow positive. In a few years your system is paid off and then starts to give you a return on your investment. By contrast when you pay cash to belco – you calculated $25,200 over 7 years – you get zero return on paying that bill, that money is gone forever to help belco’s bottom line. I hope this helps to clarify. Let me know if you need to Larn some more!
Mr Madeiros,
My inquiry is intended to be serious because the system you spoke about which saves $300 / month sounds amazing.
I’m assuming the $300 is on average, is this correct? I ask based on my limited knowledge that photo voltaic cells require x amount of sunlight to generate/store enough energy.
Would an owner of the solar cells still require Belco if they currently use ~ $250 on average per month?
In other words can I go solely solar? Sorry if it’s a stupid question… But you’ve peaked my interest because you made it sound affordable. A term I never related to solar power in BDA.
Thanks
@ tha killin me.
A 5kW system (22 240watt panels) will produce approx 725kWh’s of electricity per month , which, at Belco’s current rate of $0.41/kWh, is about $300 worth of electricity per month. Depending on weather conditions and season, this value will vary but over the course of a 12 month period this will be the approximate average. My knowledge of this is based on the 18 installations (175kW) that i have completed and can monitor online.
There are many variables which contribute to the amount of energy that panels will produce; azimuth, tilt, reflection factors, air circulation, wire sizing, inverter efficiencies, temperature coefficient of the cells, etc… all of these variable must be taken into consideration when designing a system and predicting its energy production value. All systems i have installed are grid tied, meaning the customer is still connected to Belco and no batteries are required. This allows the customer to sell electricity to belco during the daylight hours when most residential system owners are away from their homes and the solar panels are generating at their peak efficiencies. The utility meter will register a credit when electricity is sent out to the grid. In the evening, when the sun has set, the customer will use up that credit as they pull energy from the grid. If the system has been designed correctly and there is enough roof or ground space available the customer can completely “zero” their electricity bill or even be in credit with Belco who will settle that credit at the end of a 6 month cycle by sending you a cheque.
The grid tied capabilities of solar systems have eliminated the necessity for expensive battery banks that need maintenance and eventually replacement. Yes, there is an up front cost for solar but as i stated previously I can provide financing and the system will eventually be paid off and then earn you money because of the 25 year warranty periods. This is in stark contrast to paying your Belco bill every month and never seeing a return on that money. Over 25 years a $300 monthly Belco bill adds up to $90,000….and this is if rates don’t go up for that 25 years.
I hope this helps. call me if you’d like to discuss further.
I must say the on grid idea sounds good, but the idea of producing electricity for BELCO to sell (at their inflated rate and ‘fuel adjustments’) and then they cut me a check 6 months later does not sit well with me. They will be piggy backing off us and make money, while we had to pay up front. Really means the big guys win again
@Just askin
Belco will buy from you at the same rate they sell to you, and the general public, this is the definition of net metering.
A 6 moth billing cycle is not a big deal in the current scheme of things and this time frame actually assists the customer in the long run. The real winners here are the customer who has a zero balance on their bill and the general public who has less Belco exhaust fumes to breathe in.
Tim,
What are your contact details
Can I just get a windmill thingy in my backyard. If I cut my water heating cost that would be half the battle I think for most Bermudians and Belco would still make enough profit so they won’t have to price gouge
The intial cost for solar seems to be the deterrant for many people but when you look at it from the point of view that a new car can easily cost you $50K and loses value the minute it leaves the dealership but the same investment once in a solar system (once the loan is repaid) not only helps to reduce your expenses (BELCO bill) but adds value / equity to your home. What I would be interested in seeing is an airconditioner which is solar powered and a portable solar system that a renter could use.
I find it interesting that AES calculates the projected energy savings for Gorhams at the residential rate. I would like to see them show their math for the projected savings with a Demand rate billing structure.
I wonder how Lindo’s is doing, funny how they have not gone public with their “savings”. Yes, I have heard the rumors.
I am pro solar and want these commercial installs to work, but the savings projections and numbers shown here are not at accurate at all. The residential numbers are in the ballpark but inflated about 10-15%. The commercial numbers outrageous.
http://Www.aes.bm…these guys are amazing….by far the best if not only solar company in bermuda, cause it doesnt even make snce saying Pure Energy…..well done tim and the guys