Budget Concerns/Limitations:
The most common reason for
delaying electric savings projects is; “it is not in
the investment budget this year!” However as with
any waste the “repair” is cheaper than allowing the
waste to continue and with -S3-
the implementation
will cost the client nothing. From the first moment
the recommended products are installed they will be
paying for themselves entirely out of the savings
they generate.
Let’s look at an example:
If the monthly electric bill is $5,000.00 and -S3-
can reduce the electric consumption by say 20% that
will save $1,000.00 per month.
By using a leasing agreement where the client
owns the equipment after the pay off time (usually
between 18-36 months), the savings will be greater
than the monthly cost. For purpose of this example
assume a leasing cost of $800/month.
What would you prefer 1 or 2 below?
|
1
Cost/month
WITHOUT
-S3-
implemented
| Cost of Electricity |
$ 5,000 |
| |
_______ |
| |
Total $ 5,000 |
|
|
|
|
2
Cost/month
WITH
-S3- implemented
| Cost of Electricity |
$ 4,000 |
| Cost to lease -S3- |
_$
800 |
| |
Total $ 4,800 |
|
|
For each month the implementation of -S3- is
delayed, in this example, $1,000 will be wasted. The
first few months – until the lease is paid off – the
cash flow will increase by $200/month and $800/month
will pay for the improvements made to the electric
distribution system. After the lease is paid off the
positive cash flow will increase with $800/month to $1,000/month,
money that otherwise would have been wasted to pay
for electricity “leaking” out of the facility.
|