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. "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."
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