Decision

To award a contract to Path Energy Ltd to supply full turnkey installation of solar PV panels on the bulking shed roof at Swindon Road depot including battery storage at a cost of £152,052.

Government tax relief of £38,013 can be claimed reducing the total cost to £114, 039.

Reasons for the decision

This project aligns with our corporate priorities. As energy costs continue to rise and we are seeking to achieve Net Zero targets, Cheltenham has a unique opportunity to maximise electricity generation on the Swindon Road bulking shed roof to supply a significant proportion of the site’s energy requirements as part of an invest to save project.
The proposed solar PV and battery storage installation would allow a significant proportion of the site’s electricity demand to be generated and stored on site reducing operating costs, improving energy resilience, supporting future fleet electrification and demonstrating industry leading environmental stewardship. Tewkesbury Borough Council are likely to contribute to this project to support future electrification of their 3.5T and under fleet.
The business case assumes a short pay back period and a lift and shift approach should the site relocate in the future. The Council forecasts a reduction in energy bills for the site of approximately £30,000 per year.
The proposed system for solar generation:
209.5kW solar PV installation; 292 high efficiency JA solar 635W panels; annual generation of appox. 168,741 kWh likely to cover approx. 66% of current site electricity consumption.
Battery storage: 96.4kWh Fox LFP battery system, increases self-consumption of solar energy; raises electricity coverage to approx. 75.5% of total site demand; reduces dependency on peak rate grid electricity; improves site energy resilience.
The Uk Government currently allows business to claim 100% tax relief on qualifying plant and machinery investments including this type of solar installation. Payback for the original investment of £152,052 once 25% corporation tax benefit is realised will reduce from 5 years to 3.8 years.
The scheme is forecast to avoid either 988,575kg of CO2 emissions, be equivalent to planting 8,200 trees or removing almost 794,000 road miles from the atmosphere.

Alternative options considered

The Council could choose not to take this opportunity to implement a solar scheme at the site however this is not recommended as there is a need to reduce revenue costs given current budget constraints but also a commitment to supporting sustainable schemes such as this.