Southland Leisure Centre Solar Project
Generating electricity and cost savings with solar energy at Southland Leisure Centre
The Southland Leisure Centre solar PV project was expected to provide between 161,000 to 184,000 kWh of electricity to offset grid electricity during the first full year of production. In 2016, the project generated 163,250 kWh of electricity, helping offset approximately $24,000 in electricity costs for the facility for that year. Based on the system performance and electricity costs avoided to date, the updated financial returns on the project conservatively indicate 4.76% internal rate of return and a payback within 13 years.
There are multiple categories of potential avoided costs, including rate riders and balancing pool allocations, which are excluded from this forecast due to the uncertainty of their values into the future. This exclusion increases the conservativeness of the forecasted rate of return. Forecasted system performance is also reduced at a rate of 0.89% per annum (as recommended by the panel manufacturer) to account for the anticipated degradation of system performance over time.