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Client
MC Group
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Sector
Transport & Logistics
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Technology
Solar PV
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Site
Southampton
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EST. ANNUAL OUTPUT
288,313kWh
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EST. ANNUAL CO₂ SAVINGS
79,857kg
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EST. PAYBACK PERIOD
3 years
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EST. 25-YEAR NET PROFIT
£3.9 million
Client
MC Group is one of the leading suppliers of commercial transport solutions in the UK. With more than 30-years experience in the transport industry, they serve a variety of sectors including retail distribution, construction, food manufacturing and distribution, local authorities, waste and recycling, and emergency services.
Working in the transport and logistics sector, the company specialises in vehicle sales, contract hire, rental, fleet and asset management, maintenance and support services. With EV trucks and buses becoming a growing part of MC Group’s business, their energy requirements have increased significantly. Coupled with an increase in utility prices, energy became a concern for Group Financial Director Peter Booth, who approached Solarsense to identify how much the business could save by installing solar panels on their depots.
As a forward thinking business, it was useful for MC Group to forecast their energy costs and protect their business from future price hikes. It therefore made sense to finance and install solar panels to provide their depots with a reliable source of clean energy.
From the client
“We had installed LED lighting at all of our sites and implemented automatic controls on our boilers and lights. But then you get to a point where there’s only so much you can do. A solar panel system seemed the next logical step and the sensible thing to do. We created a tender document and sent it out to about five different potential suppliers. Initially it was to work out which suppliers could do it in a reasonable timeframe, and then we had our criteria to score suppliers and Solarsense came out on top”.
“Because it was a long-term investment, it made more sense to match the savings with the cost of it and free up that cash for other things. From a cost-benefit perspective, the payback is less than 5 years, while the solar panels have more than a 20-year life. It’s a bit of a no-brainer really. We also know the cost of 40% of our electricity for the next 20 years. It takes quite a weight off your mind.”
Peter Booth, Group Financial Director – MC Group
Solar PV Systems
MC Group approached Solarsense to conduct a feasibility study, including detailed calculations to determine the amount of solar energy the company could generate at their transport depots in Southampton and Hythe. Each site provided several obstacles to overcome including an asbestos roof at the Southampton depot which required over-cladding.
Following a detailed technical review, site survey and feasibility study, the design engineers at Solarsense specified 400W solar PV modules due to their high efficiency and power output. This allowed MC Group to maximise their on-site energy generation from the available roof space and significantly reduce their reliance on buying electricity from the National Grid.
While MC Group had the capital available to pay for the solar PV project upfront, they preferred the option of commercial financing through a Smart Ease Payment Plan spread over 5-years. This allowed the company to retain their capital and match the savings to the cost of installation, freeing up cash to spend on other business activities. For more information please see our clean energy finance paper.
The result
The 280.4kWp solar PV system installed at the depot in Southampton is estimated to generate 288,313kWh of clean energy each year; reducing their carbon footprint by more than 61 tonnes per annum. As well as significantly improving the sustainability credentials of the transport company, the large-scale solar PV system installed for MC Group is estimated to generate a net profit of more than £3.9million for the company over the next 25-years. Positive early data indicates the solar panels are generating in line with the financial projections and likely to pay for themselves within three years.
Services provided
- Clean energy feasibility study
- Detailed technical design (solar PV system)
- Full supply, installation, commissioning and testing
- Full handover including MCS registration, G99 grid connection, operation and maintenance pack
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