February 15, 2018 In the face of a complex and confusing time, commercial solar may initially sound like a risky move. But, despite the new tariff , experienced solar energy companies, like KMB, can help business owners use the sustainable and cost-effective energy alternative to maximize ERoEI.
What is Energy Return on Energy Investment (ERoEI)?
Energy return on energy investment (ERoEI), also referred to as EROI, refers to the amount of energy that must be expended in order to produce a certain amount of usable energy.
For example, when referring to solar energy, it requires energy to extract silicon for a solar panel, refine it and create the solar cells. The additional components, such as the inverter and cabling are also a part of the manufacturing process that requires energy. Following that initial energy input of manufacturing, the solar system will generate usable energy for decades. The ratio of input to output energy over the lifetime of the system would be its ERoEI.
ERoEI = Quantity of Energy Supplied ÷ Quantity of Energy Used in the Supply Process
An EROI of 1 would mean there is no energy surplus; the energy has been wasted; when the number is large, energy from that source would be considered cost-efficient.
While it varies between types of solar PV, some current studies find the initial average ERoEI of solar to be between 8.7 and 34.2. As technology continues to improve and the costs become more attractive, this energy payback estimate will continue to improve.
In addition, considering that the average lifespan of a PV system is 30 years, it will not only generate enough electricity to repay their energy invested to produce the system, but will continue to produce clean energy for many years, even decades, to come. According to the US National Renewable Energy Lab, the use of photovoltaics (PV) has an attractive energy payback time (EPBT) of one to four years depending on the type of technology employed and the location where it is mounted. And, the Fraunhofer Institute in Germany states that solar energy has an even lower ERoEI of one to two and a half years.
Solar Energy Companies that Deliver ERoEI Opportunity
Commercial solar installation is a long-term investment, so businesses must consider the reputations of the solar energy companies they are looking to hire. Savvy solar energy companies look beyond the current tariff and see the prospect of sustainable renewable energy not as a roadblock for businesses, but as a unique opportunity to increase profits.They will take a systematic approach to develop comprehensive solar engineering solutions that directly line up with your goals.
As one of the top solar energy companies in the nation, KMB combines vast photovoltaic experience with quality engineering consulting services. We are a full-service engineering firm licensed in the United States and Europe.
Contact us to find out how KMB can help your business navigate the new solar tariff and maximize ROI for commercial renewable energy.