Central Storage & Warehouse
The system will produce 905,500kWh/year, offsetting 16% of CSW’s annual electrical load. The owners are excited they are now powering a good portion of their refrigeration needs with natural sunlight, thus lowering operating costs, increasing sustainability, and enhancing their competitive market differentiation.
With a former utility blended cost of electricity of 10.2¢ / kWh, this system reduces their levelized cost of energy over the life of the system to about 3.2¢ / kWh, which will produce over $90,000 of direct energy cost savings per year. As the cost of electricity increases over time due to inflation, these energy savings will grow over time. Over the 30-year expected lifespan of the system, CSW will save over $5.1 million in projected energy costs.
In addition to the federal tax credit and accelerated depreciation benefits, this particular project was able to take advantage of a one-time cash grant, which further assisted the financing of the system. SunPeak wrote the entire grant on behalf of CSW. SunPeak will assist all of its customers in evaluating and applying for any additional funding that may be available for a given project, which varies by state, utility, population density and current political initiatives.
SunPeak was able to arrange financing for this system that allowed CSW to install the system on a cash flow neutral basis and then finance it over time to provide ongoing positive cash flow throughout the entire life of the system. No net cash was invested, and energy cost savings began immediately. With the financing deal, the IRR was dramatically enhanced through the use of borrowed capital.
SunPeak can work with you to devise a creative financing strategy that can lead to no out-of-pocket investment and ongoing positive cash flow over the life of the system. There are numerous financial structures available to accommodate this.
SunPeak handled everything including: project engineering, financial analysis, permitting, component procurement, final installation and commissioning. A few short meetings with Central Storage management was all that was necessary, and from there SunPeak managed the entire process.
SunPeak can lead you through the world of generating your own power using the sun’s free natural energy. Please contact one of our sales representatives today to begin the discussion and ask for a free solar analysis. Our goal is to educate everyone about the exciting new alternatives available to economically power your business. We are a high integrity company, offering the strongest value in the industry.
This project was featured in several news articles nationally.
"Central Storage & Warehouse is proud to have partnered with SunPeak to make this solar project a reality. We are excited by the opportunity to both improve our operating efficiency and reduce our environmental impact, consistent with our commitment to our customers and community.”
John Winegarden, CEO Central Storage & Warehouse