Finance, Industrial, Solar, Sourcing Renewables  -  March 1, 2017

Onsite solar to save Florida steel company up to $80k

^{Photo of the solar installation at one of Tampa Tank Inc.-Florida Structural Steel's manufacturing facilities provided by TTI-FSS.} 

A recently installed onsite solar project at one of Tampa Tank Inc.-Florida Structural Steel's three Tampa, Fla., manufacturing facilities is expected save the global steel fabrication company between $75,000 and $80,000 in energy costs within its first year of operation. 

The 507-kW solar PV system is the largest solar installation for an industrial plant in Hillsborough County, Fla., and one of the largest in the state, according to a Feb. 24 news release announcing its completion. 

TTI-FSS board member David Reed explained in a video about the project that one of its most significant benefits is power price predictability. The installation, he said, not only reduces the facility's operating costs but also secures a large portion of its power needs for 25 years at a lower fixed price, reduced from 13 cents per kWh to 3 cents per kWh. 

"As a manufacturer, we use a lot of power, so it's a big part of our budget and a big opportunity to get more efficient," Reed said. "It helps us immensely to be able to predict what our power costs are going to be in the future." 

The company will also benefit from the federal investment tax credit, which is worth 30% of the system's cost, and bonus depreciation of 50% the first full year of operation. 

Solar Advantage installed the 1,492 Canadian Solar 340 panels and 51 inverters for property developer Shepard Capital Partners, from whom TTI-FSS leases the facility. Reed is also a principal at Shepard Capital Partners. 

"We're all concerned about the environment, so we were willing to consider solar energy as an alternative resource after evaluating three important factors: One, the return on investment; two, the viability of the manufacturing plant structure itself to support the number of solar cells necessary without having to reinforce it; and, three, the proposal from Solar Advantage to provide the quality and savings we expected at a reasonable cost," TTI-FSS founder Cal Reed said in a statement. "Fortunately, all three factors aligned to make this project possible."