ABB has launched an innovative energy payback calculator that helps small and medium enterprises (SMEs) evaluate the benefit of buying variable speed drives using the government’s Action Energy loan.
The calculations show that even with modest energy savings, the loan enables the user to save several hundred pounds per month.
This is because variable speed drives can save as much as 60% of the energy in many common applications, normally giving payback in 12 months or less on energy alone. The Action Energy loan is totally interest free and splits the repayment over four years, giving the user an overall net saving when both the energy savings and the loan repayments are taken into account.
“The Action Energy loans offer a really good incentive to small companies to start saving energy with variable speed drives,” says James Haigh, Senior Vice President, Drive Products, at ABB.
“This is a customer group where cash flow issues can be of paramount importance, regardless of the energy saving potential of the suggested solution. With an Action Energy loan, we can propose a repayment option which is tailored to this customer group.”
Loans from Action Energy are available to SMEs with no more than 250 employees and an annual turnover of less than £25 million.
With, for instance, a 70 kW pumping application, the monthly saving can be £421 per month. This assumes the drive installation costs £5,400, repaid with £112 per month, and runs 8,000 hours per year, operating at 70% speed. After four years, when the loan is paid off, the saving increases to £533.
“Essentially, users are getting paid to use a variable speed drive,” Haigh says. “By proving the energy savings as well as making the business case for either a new drive installation, or the replacement of an existing drive, we can make a substantial improvement to the cash flow of a small business.”
The calculations show that even with modest energy savings, the loan enables the user to save several hundred pounds per month.
This is because variable speed drives can save as much as 60% of the energy in many common applications, normally giving payback in 12 months or less on energy alone. The Action Energy loan is totally interest free and splits the repayment over four years, giving the user an overall net saving when both the energy savings and the loan repayments are taken into account.
“The Action Energy loans offer a really good incentive to small companies to start saving energy with variable speed drives,” says James Haigh, Senior Vice President, Drive Products, at ABB.
“This is a customer group where cash flow issues can be of paramount importance, regardless of the energy saving potential of the suggested solution. With an Action Energy loan, we can propose a repayment option which is tailored to this customer group.”
Loans from Action Energy are available to SMEs with no more than 250 employees and an annual turnover of less than £25 million.
With, for instance, a 70 kW pumping application, the monthly saving can be £421 per month. This assumes the drive installation costs £5,400, repaid with £112 per month, and runs 8,000 hours per year, operating at 70% speed. After four years, when the loan is paid off, the saving increases to £533.
“Essentially, users are getting paid to use a variable speed drive,” Haigh says. “By proving the energy savings as well as making the business case for either a new drive installation, or the replacement of an existing drive, we can make a substantial improvement to the cash flow of a small business.”
Click 'Next' to go to the SME Payback Calculator.....
