Worked example
Overview
Capital expenditure after first year (traditional procurement) = £98,270
Capital expenditure after first year (Lifesaver procurement) = £0
Example calculation
Replacement of high pressure sodium installation with Brilliance T5 fittings:
Reduction in installed electrical load = 136kWh
24 hour/364 days operation, annual running hours = 8,736 hours
Include daylight and occupancy control, annual running hours = 5,242 hours
Reduction in annual energy consumption = 1,444,956kWh
Electricity costs @ 5.811p (inc. CCL)
Financial savings on electricity = £83,966 per annum
Maintenance savings = £9264 per annum
Total financial saving on energy and maintenance = £93,230 per annum
Traditional procurement route
Initial capital outlay = £191,500 in first year.
Ongoing payments (exc. maintenance) = £0
Capital expenditure by end of first year, after savings = £98,270
Lifesaver procurement route
Initial capital outlay = £0
Quarterly payments, in arrears, = £20,000
Quarterly savings (93,230 / 4) = £23, 307
Annual payment = £80,000
Annual saving = £93,230
Capital expenditure by end of first year, after savings = £0
Financial saving at end of first year = £13,230
Financial savings over 3 year PAYS contract = £39,690
Ongoing annual savings after first 3 years = £93,230 per annum
PLUS
The Lifesaver procurement route offers benefits over and above the financial savings outlined here. These include:
Savings protection visits
Pre- and post installation monitoring ensures that maximum savings continue to be achieved beyond the installation and commissioning phase.
Assistance in sourcing external funding
Chalmor has extensive experience in not only identifying appropriate grants, loans and other sources of additional finance but also in navigating the often complex application processes associated with them. This expertise is available to all Lifesaver scheme customers.
Peace of mind
All Lifesaver contracts are accompanied by an extended warranty scheme for the duration of the contract. So all financial risk is transferred to Chalmor and any problems are dealt with swiftly and efficiently.
To find out more information or to discuss a project, please complete our Enquiry Form or call 01582 748700