Two packaged foods companies embarked on a joint venture to form a new food processing company. After the company was formed, two of their California manufacturing facilities within the combined real estate portfolio were experiencing unplanned downtime due to plant shutdowns during power outages, along with high energy usage and peak demand charges.
In fact, they were hit with approximately $30.5 million in costs associated with unplanned downtime in one year, which also negatively impacted the lifecycle of the motors in their equipment. The company needed to reduce operating expenses via the deployment of renewable energy solutions, and they were unsure of which rebates/incentives were available.
The assessment showed the ROI of implementing two solar PV systems and energy storage. In addition, approximately $4.6 million in state incentives were uncovered that would:
- Prove ROI with a renewable energy solution
- Enhance power quality on-site
- Maintain production and operations independent of the utility
- Reduce equipment failures and necessary repairs
By implementing our recommendations, the company expects to see:
- 5-year payback period
- 16% internal rate of return
- 150% 20-year ROI
- 80% coverage of power outages
- $674,150 annual savings on electrical bills alone
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