How much can installing a solar PV system reduce electricity costs for factories?

As the process of industrialization continues to advance, energy consumption and electricity costs have become a problem that many factories and enterprises must face. Especially those industries with high energy consumption and high electricity costs, how to reduce production costs and enhance competitiveness has become one of the keys to survival and development. In the field of manufacturing, the cost of electricity accounts for 8%-15% of the total operating costs of enterprises, and the power expenditure of high-energy-consuming factories even exceeds 20% of the total cost!

In recent years, solar photovoltaic (PV) systems have become the preferred energy solution for more and more factories due to their environmentally friendly, sustainable and cost-saving features. So, how much can installing solar PV systems save factories on their electricity bills? Next, we analyze the industry data and actual cases for you in detail.

Solar PV system can bring electricity cost savings

According to statistics, about 70%-80% of the electricity consumed by a factory during normal operation comes from the production process. These power expenses usually take up a considerable part of the factory's operating costs. In this case, solar PV systems, with their efficient energy conversion rates and relatively low installation and maintenance costs, are ideal for many factories to reduce their electricity expenses.

According to industry data:

Percentage of electricity bill savings: According to the China Photovoltaic Industry Association (CPIA), factories can directly reduce their electricity bills by about 30%-50% after installing a solar PV system.

Payback period: The payback period for PV systems is generally 5 to 7 years, and can even be shortened to 3 to 4 years in some areas where electricity is more expensive. This means that the installation cost of a PV system can be recouped in the short term through savings in electricity costs, after which you begin to enjoy ongoing economic benefits.

Long-term savings: Over the life of the system (typically 25+ years), companies can save more than 60% on their electricity bills by generating their own electricity and consuming solar-generated electricity.

Factory PV System Installation Analysis

Roof Assessment and Design

The load-bearing capacity of the roof on which the PV equipment is to be installed needs to exceed 20kg/㎡, shading conditions and structural stability, with preference given to color steel tiles or concrete roofs.

The design of PV system should match the peaks and valleys of electricity consumption, such as giving priority to self-consumption during the daytime when energy consumption is high, and relying on the grid to supplement at night.

Equipment selection and installation

The use of monocrystalline silicon modules with a PV conversion efficiency of more than 21%, as well as string inverters with a conversion rate of more than 98%, is the current mainstream solution, which can enhance the power generation per unit area by 15%-20%.

Innovative mounting techniques, such as water-guided trough mounts, can avoid the risk of hidden cracks caused by stepping on the PV panels and prolong the life of the equipment.

Grid Connection and Operation and Maintenance

Adopting the mode of “self-generation and self-consumption, and on-grid connection”, the annual operation and maintenance cost only accounts for 1%-2% of the investment, with the real-time optimization of power generation efficiency through the intelligent monitoring system.

Factory Case Study

1. An auto parts plant in Anhui, China:

Installed size: 2 MW rooftop PV

Effectiveness: annual power generation of 2.2 million kWh, covering 60% of the plant's electricity demand, saving RMB 1.54 million/year in electricity costs; 220,000 yuan of income from residual power feed-in, and a total payback period of only 4.3 years after government subsidies are added.

2. PV System Installation for Food Processing Plant in Hunan, China

The Hunan Food Processing Plant has an annual electricity consumption of 2,500,000 kWh/year and an annual electricity bill of RMB 2 million. By installing an 800kW solar PV system and utilizing the roof area for large-scale PV power generation, the plant successfully reduced its electricity bill by 70%.

System configuration: 800kW PV system with a total investment of about 6 million RMB.

Electricity bill saving: Self-generated and self-consumed 70% of the electricity, saving about 1.4 million RMB in electricity bill expenditure per year.

Payback period: The payback period of the system is 5 years, after which the company will fully enjoy the annual electricity bill savings of about 1.4 million RMB.

Other advantages of installing a solar PV system

In addition to significant savings on electricity bills, installing solar PV systems in factories brings the following advantages:

1. Green

Solar photovoltaic system is a zero-emission energy source, which can significantly reduce carbon dioxide emissions and help enterprises to improve their green image, in line with national environmental policies and sustainable development goals.

2. Energy independence

After installing the PV system, the factory can rely on its own PV power generation to reduce its dependence on traditional electricity, reduce the risk of power supply interruption and electricity price fluctuation, and ensure the stability of production.

3. Government subsidies and tax incentives

National and local governments provide certain financial subsidies and tax incentives for PV projects. Enterprises can obtain some policy support during the initial investment, thus reducing the investment pressure of the project.

4. Brand value enhancement

In an increasingly competitive market, more and more consumers and partners are concerned about the environmental protection actions of enterprises. Installing solar PV systems helps to enhance the brand image of enterprises and attract green consumer groups and environmental investors.

Summarize

To summarize, installing solar PV systems can significantly reduce the factory's electricity expenses. Depending on the electricity consumption, companies are usually able to save 30%-50% of the electricity costs, and through policy support and self-generated electricity use, the return is considerable in the long run. With the continuous progress of photovoltaic technology and the gradual reduction of costs, more and more factories will join the application of photovoltaic energy to enjoy the economic and social benefits of green environmental protection.

Photovoltaic systems have been upgraded from “optional” to “mandatory” industrial infrastructure. Through professional program design, companies can not only lock in a stable electricity price for the next 20 years, but also turn unused rooftops into assets with sustainable income. If your factory is looking to reduce electricity costs and improve its brand image, a solar PV system is definitely a smart choice for investment.