Voltage optimisation is a powerful tool for reducing energy consumption, lowering carbon emissions, and extending the lifespan of electrical equipment. However, one of the most frequently asked questions when considering this technology is, “How much does it cost?”
In this guide, we’ll explore the factors that affect the cost of voltage optimisation, the potential return on investment (ROI), and why this investment could be a game-changer for your business.
The cost of voltage optimisation depends on several key factors, all of which vary from business to business. Here are the main considerations that affect the pricing:
The size and type of your building play a crucial role in determining the cost of voltage optimisation. For small businesses such as retail shops or small office spaces, the installation of a single-phase voltage optimisation unit might be relatively inexpensive. However, larger industrial plants or facilities with high energy consumption and complex electrical systems will require more advanced, three-phase voltage optimisation systems, which typically come with higher installation costs.
As mentioned earlier, the type of voltage optimisation system plays a significant role in determining costs. Businesses can choose between fixed, variable, and dynamic systems.
Fixed systems are generally the least expensive option. They reduce voltage to a set level and are suitable for sites with stable energy usage. However, they may not be ideal for businesses that experience fluctuating energy demands.
Variable systems are slightly more expensive, as they adjust the voltage depending on the load and supply conditions, making them better suited to environments with inconsistent energy use.
Dynamic systems are the most sophisticated and come with a higher price tag. These systems continuously monitor the incoming voltage and make real-time adjustments to ensure the most efficient operation. While these systems are more expensive upfront, they deliver the highest levels of energy savings and efficiency.
Another cost factor is the complexity of installation. For simpler setups, like small offices or retail outlets, installation is relatively straightforward and can be completed with minimal disruption. Larger facilities, especially those with multiple buildings or high-powered equipment, will require more complex installation processes, which can increase labour costs.
Additionally, retrofitting an existing facility with voltage optimisation technology may involve upgrading parts of the electrical infrastructure, adding further to the total cost. For this reason, it’s crucial to consult with a professional to assess the current state of your electrical system before proceeding with installation.
The more energy your business consumes, the more savings to be gained from voltage optimisation. As a result, larger energy users may need a more robust system, which will naturally come with higher costs. However, this also means that the savings potential is greater, and the payback period is often shorter for businesses with higher energy usage.
Different types of equipment respond differently to voltage changes. For example, voltage optimisation is particularly effective for reducing energy consumption in buildings that run heavy machinery, HVAC systems, lighting, and refrigeration units. If your facility has voltage-sensitive equipment, a tailored voltage optimisation system will need to be implemented, potentially increasing the cost.
While the initial cost of voltage optimisation can seem significant, it’s essential to consider the long-term financial benefits. Voltage optimisation can typically reduce energy bills by between 7% and 12%, meaning that the system will often pay for itself within two years. After this period, businesses will continue to benefit from ongoing energy savings.
For example, if your business spends £50,000 per year on energy, a 10% reduction in electricity bills through voltage optimisation would save you £5,000 annually. If your system costs £10,000 to install, the payback period would be two years. Once this period has passed, the system continues to generate savings, effectively increasing your profit margins year after year.
For businesses concerned about the upfront cost of voltage optimisation, there are several financing options and incentives that can help reduce the financial burden:
Energy Efficiency Grants: Many local authorities and energy suppliers offer grants to businesses investing in energy efficiency technologies like voltage optimisation. These grants can help offset the initial cost of installation, making it more affordable for smaller businesses.
Power Purchase Agreements (PPAs): In some cases, businesses can opt for a Power Purchase Agreement (PPA), where Powerdown220 installs and maintains the voltage optimisation system at no upfront cost. Instead, the business pays for the energy saved through the system, which can result in immediate savings without the need for capital expenditure.
Tax Incentives: The UK government offers various tax incentives for businesses investing in energy efficiency, such as the Enhanced Capital Allowance (ECA) scheme. This scheme allows businesses to claim 100% of the cost of energy-saving technologies, including voltage optimisation, against taxable profits in the year the investment is made.
In addition to the direct financial savings from reduced energy bills, voltage optimisation offers several long-term benefits:
Extended Equipment Lifespan: By optimising the voltage supplied to your equipment, voltage optimisation reduces wear and tear, meaning your machinery and appliances will last longer and require fewer repairs. This reduces the costs associated with maintenance and replacement.
Improved Power Quality: Voltage optimisation can improve the overall quality of the power supplied to your business, reducing the risk of surges, sags, and harmonic distortions that could damage sensitive equipment. This adds another layer of cost-saving by preventing equipment failure and downtime.
Environmental Impact: Reducing energy consumption also means reducing your carbon footprint. This not only helps your business meet sustainability targets but also enhances your reputation as an environmentally responsible organisation, which can be a powerful marketing tool in today’s eco-conscious market.
While the upfront cost of voltage optimisation may vary depending on the size and needs of your business, the long-term benefits make it a worthwhile investment. By reducing energy consumption, lowering electricity bills, extending the lifespan of your equipment, and contributing to sustainability goals, voltage optimisation provides both immediate and ongoing returns.
With a typical payback period of two to five years, and the potential to save between 7 – 12%% on energy bills, voltage optimisation is a smart choice for businesses looking to enhance their energy efficiency, cut costs, and future-proof their operations.
Energy saving – it’s something that’s hugely important for all of us, irrespective of whether you’re running a commercial business or simply looking to optimise energy use in your home. However, this isn’t necessarily a simple process, and there are several do’s and don’ts you should keep in mind to help.
Energy saving – it’s something that’s hugely important for all of us, irrespective of whether you’re running a commercial business or simply looking to optimise energy use in your home. However, this isn’t necessarily a simple process, and there are several do’s and don’ts you should keep in mind to help.
Energy saving – it’s something that’s hugely important for all of us, irrespective of whether you’re running a commercial business or simply looking to optimise energy use in your home. However, this isn’t necessarily a simple process, and there are several do’s and don’ts you should keep in mind to help.
Wondering if voltage optimisation (VO) is a smart investment for your company? It’s often unclear how VO can impact your carbon footprint and energy costs. Our latest blog at Powerdown220 explores how VO can benefit your business and help the environment. Let our experts guide you through the advantages of this technology.
