Optimizing self-consumption of electricity with photovoltaics using the example of transport and logistics companies – including rooftop solar systems and electricity storage

Calculating the return on investment, amortization, and potential profit from your own solar power system is not so simple, as many factors play a role, and these vary considerably from company to company. This starts with the different electricity tariffs and the differences between residential, commercial, and industrial electricity.

Bold calculations start with a payback period of 8 years. The average for well-calculated and self-financed solar systems is 11 to 14 years.

Assuming a possible lifespan of up to 30 years for a solar power system, a solar power system generates at least 10 times the energy required for its manufacture and disposal.

The return on investment: Whether a solar power system is worthwhile depends primarily on how the electricity generated from solar energy is used. The government-guaranteed feed-in tariff, valid for 20 years, is far less profitable than self-consumption. Self-consumption, in particular, offers significant potential for cost savings. Besides personnel costs, energy costs are among the largest operating expenses for a company.

Those who use their solar power at the moment it is generated need to purchase less additional electricity. With the help of a battery storage system, excess PV power can be stored and used at a later time, further minimizing expensive electricity purchases from the grid.

Financing model for photovoltaics – Image: Daria Lukoiko|Shutterstock.com

Following the decisions on phasing out coal and the Climate Protection Act of 2019, electricity prices are expected to rise by approximately 40% by 2030. Current financing models are based on the current situation and do not take future developments into account. This means that as electricity prices increase, solar power systems become increasingly worthwhile.

Since January 2021, a CO2 tax has been in effect on gasoline, diesel, heating oil, and gas. Those who do not drive sustainably or heat their homes sustainably must expect significantly higher and increasing costs.

But goods and services are also affected!

Previously, this only applied to companies in the energy sector, industrial groups and airlines with their greenhouse gas emissions, which they could settle via so-called emission certificates : With the introduction of CO2 pricing on January 1, 2021, this now also applies to companies that put petroleum products, natural gas or coal into circulation.

“When we use petroleum products, natural gas or coal as fuels, this has a strong impact on our environment. Therefore, incentives should now be created to reduce their consumption and to trigger a steering effect towards more environmentally friendly forms of energy and products,” according to the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety.

“From January 1, 2021, CO2 emissions from such fossil fuels will therefore be priced. Companies that place such fuels on the market will have to purchase emission allowances in the form of certificates.”.

According to the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, companies will pass these costs on to consumers. The CO2 levy is to increase gradually by €55 per ton by 2025. Currently, the CO2 price is €25 per ton.

Almost all of our everyday products are based on petroleum!

Everyone still talks about fuel and heating oil when it comes to the CO2 tax. However, the fact that petroleum is found in all our everyday products is often overlooked. This includes textiles and rubber (synthetic rubber). Mineral oil is also used in cosmetics, from body lotion and mascara to shower gel. Plastics, too, are generally produced using petroleum.

In short: If these additional costs are passed on to buyers, the goods and services affected will become more expensive.

“Since the CO2 price was set uniformly from 2021 onwards, manufacturers and suppliers of goods and services now have to pay a fixed price per ton of carbon dioxide. If these additional costs are passed on to buyers, sooner or later goods and services that are harmful to the climate will become more expensive. In other words: Everyone who emits carbon dioxide pays this tax,” writes WirtschaftsWoche.

“The permanent increase in the CO2 tax will favor the shares of companies that save energy or avoid emissions,” according to RP Online.

The market and competitive advantage will generally pass to the companies that set the course for this in time

Xpert.Digital has long pointed out this fact and that companies like Amazon Logistics are not only pushing ahead with autonomous power supply for purely environmental reasons: “It’s about the higher costs that will accompany environmental regulations, peak electricity demand (infrastructure and grid stability) and CO2 balance in the future.”

Above all, it's about market share and competitive advantages. Companies that haven't yet taken concrete steps in this area need to act quickly to avoid falling behind the competition. The increased cost of their own products and services due to a lack of investment in autonomous power generation through photovoltaics will be another major challenge for the future in the coming years.

Electricity price development for industry – Possible scenarios from 2021 to 2030 – Image: Xpert.Digital

Related to this:

• Autonomous power supply and solar power monetization – Learning from Amazon Logistics

Xpert.Digital is not only a pioneer in digitalization, but also among the first to promote the importance of autonomous power supply (see island solution). Our expertise is reflected in over 800 technical articles. We have been active in photovoltaics for several years and in logistics/intralogistics for over 15 years.

More on this topic:

• Energy transition: Background information on petroleum, CO2 tax and renewable energies

Electricity prices for commercial and industrial customers in Germany from 2010 to 2020 (in euro cents per kilowatt hour) – Image: Xpert.Digital

As of April 1, 2020, commercial customers in Germany paid 23.03 cents per kilowatt-hour of electricity, based on a volume-weighted average for an annual consumption of 50 megawatt-hours. Industrial customers with an annual consumption of 24 gigawatt-hours, on the other hand, paid 16.54 cents per kilowatt-hour on the same date.

Industrial electricity prices

Without taxes, the electricity price for industry in Germany in 2020 was approximately 8.49 cents per kilowatt-hour. The electricity price including taxes, at around 19 cents per kWh in 2020, was composed of various components. A large portion resulted from the "procurement, grid fees, and distribution" component, as well as the EEG surcharge, which promotes the expansion of renewable energies in Germany.

Electricity prices for residential customers

Since 2017, a general upward trend in electricity prices for residential customers has been observed in Germany. For annual consumption of 1,000 to 2,500 kilowatt-hours, Germany had the highest electricity prices in the EU. Conversely, the lowest electricity prices were charged in Bulgaria, Hungary, and Lithuania. As with electricity prices for industry, the electricity price for residential customers is primarily composed of network charges, procurement and distribution costs, and the EEG surcharge.

Electricity prices for commercial and industrial customers in Germany until 2020

Electricity prices for commercial customers in Germany until 2020

• April 1, 2010 – 21.52 cents per kilowatt hour
• April 1, 2011 – 23.38 cents per kilowatt hour
• April 1, 2012 – 23.89 cents per kilowatt hour
• April 1, 2013 – 26.74 cents per kilowatt hour
• April 1, 2014 – 21.86 cents per kilowatt hour
• April 1, 2015 – 21.47 cents per kilowatt hour
• April 1, 2016 – 21.20 cents per kilowatt hour
• April 1, 2017 – 21.70 cents per kilowatt hour
• April 1, 2018 – 21.56 cents per kilowatt hour
• April 1, 2019 – 22.22 cents per kilowatt hour
• April 1, 2020 – 23.03 cents per kilowatt hour

Electricity prices for industrial customers in Germany until 2020

• April 1, 2010 – 12.29 cents per kilowatt hour
• April 1, 2011 – 15.74 cents per kilowatt hour
• April 1, 2012 – 15.78 cents per kilowatt hour
• April 1, 2013 – 17.17 cents per kilowatt hour
• April 1, 2014 – 15.11 cents per kilowatt hour
• April 1, 2015 – 14.80 cents per kilowatt hour
• April 1, 2016 – 14.21 cents per kilowatt hour
• April 1, 2017 – 14.90 cents per kilowatt hour
• April 1, 2018 – 15.30 cents per kilowatt hour
• April 1, 2019 – 15.98 cents per kilowatt hour
• April 1, 2020 – 16.54 cents per kilowatt hour

To get an initial overview, it's good to know what your annual electricity costs are.

Based on this, initial investment and amortization scenarios can be mapped out.

Those who wish to finance their solar system 100% with equity capital can find interesting investment volumes of 10 to 15 years here.

Other financing models, such as solar contracting (Solar as a Service – SaaS / leasing), offer terms of up to 20 years. The operator fully finances the solar system and receives discounted electricity from it compared to the grid provider. After 20 years, the solar system becomes the owner's property.

• Energy producers refer to electricity as "private electricity" when between 1,000 and 5,000 kilowatt hours of electricity are sold annually.
• Depending on the electricity supplier, commercial electricity is worthwhile if companies consume at least 30,000 kWh per year.
• There is no law that specifies the minimum consumption level at which energy suppliers must offer commercial electricity tariffs. Each supplier is free to decide.
• For electricity consumption exceeding 100,000 kWh per year, it is generally possible to obtain so-called industrial electricity from electricity suppliers.

Examples:

Commercial electricity

Annual electricity consumption: 100,000 kWh / 100 MWh
Net electricity price: 23.03 cents per kWh
Annual electricity costs: €23,030

Amortization after 10 years = possible investment volume: 230.300 € ^*1

Industrial electricity

Annual electricity consumption: 100,000 kWh / 100 MWh
Net electricity price: 16.54 cents per kWh
Annual electricity costs: €16,540

Amortization after 10 years = possible investment volume: 160.540 € ^*1

^*1 Not included:

• The expected increase in electricity costs by 40% in the next 10 years, which shortens the potential amortization period.
• The CO2 tax on goods and services shortens the potential amortization period and strengthens market position and competition.

• Gasoline +7 cents/liter
• Diesel +7.9 cents/liter
• Heating oil +7.9 cents/liter
• Natural gas +0.6 cents/kWh

The calculations show that for 1 liter of milk, the additional costs amount to 0.17 euros, with CO2 emissions of 0.92 kg.

More information here:

• https://www.wiwo.de/finanzen/steuern-recht/klimaschutz-co2-steuer-alles-was-sie-wissen-muessen/25533826.html
• https://www.bundestag.de/resource/blob/660794/dfdee26b00e44b018b04a187f0c6843e/WD-8-056-19-pdf-data.pdf
• https://de.wikipedia.org/wiki/CO2-Steuer
• https://uba.co2-rechner.de/de_DE/

Average composition of commercial electricity prices according to the Federal Network Agency (2016)

• Energy provider's performance – 24%
• Government taxes and levies – 48%
• Network operator's network charges – 28%

Composition of the electricity price^*1 for household customers in Germany in 2020

• Energy procurement, distribution, other costs and margin – 23.7%
• Net network charge – 22.6%
• EEG surcharge – 21.1%
• Value Added Tax – 16%
• Electricity tax – 6.7%
• Concession fee – 5.3%
• Fee for measurement and meter operation – 1.4%
• Offshore grid levy – 1.4%
• Section 19 levy – 1%
• CHP levy – 0.9%
• Levy for interruptible loads – 0%

^*1 Volume-weighted averages across all tariffs (standard contract with the default supplier, special contract with the default supplier, contract with an energy supplier other than the default supplier) as of April 1, 2020. EEG = Renewable Energy Sources Act; KWKG = Combined Heat and Power Act.

Composition of the electricity price for household customers in Germany in 2020 and 2021

The statistic shows the development of the composition of the electricity price for household customers in Germany in the years 2020 and 2021. In 2021, the electricity tax for private households in Germany was 2.05 cents per kilowatt hour.

The following information is based on a three-person household with an annual consumption of 3,500 kilowatt hours. Some values ​​are rounded. The concession fee is based on the average; it varies depending on the size of the municipality.

Composition of the electricity price for residential customers in Germany in 2020

• Network charge (incl. measurement, billing, meter operation) – 7.75 cents
• Procurement, sales – 7.51 cents
• EEG surcharge – 6.76 cents
• Value added tax – 5.08 cents
• Electricity tax – 2.05 cents
• Concession fee – 1.66 cents
• §19 levy NEV levy – 0.36 cents
• Offshore network levy* – 0.42 cents
• CHP surcharge – 0.23 cents
• Surcharge for switchable loads – 0.01 cents

Composition of the electricity price for household customers in Germany 2021

• Network charge (incl. measurement, billing, meter operation) – 7.80 cents
• Procurement, sales – 7.70 cents
• EEG surcharge – 6.50 cents
• Value added tax – 5.09 cents
• Electricity tax – 2.05 cents
• Concession fee – 1.66 cents
• §19 levy NEV levy – 0.43 cents
• Offshore network levy* – 0.40 cents
• KWKG surcharge – 0.25 cents
• Surcharge for switchable loads – 0.01 cents

* Offshore liability levy until 2018.

Electricity costs are a crucial factor in the balance sheets of many companies, depending on the type and size of the business. A photovoltaic system can reduce these costs simply and reliably, but only during periods of high sunlight. In the mornings and evenings, when the sun is not yet at its full strength, companies remain dependent on expensive electricity purchased from the grid, while at midday, the cheaper, surplus solar power is fed into the grid.

Due to societal changes towards greater sustainability, the topic of electricity storage for renewable energies is also gaining increasing importance in industry.

The requirements and needs of a company will change dramatically, especially in the coming years. Therefore, flexible systems with and for energy storage are in demand.

The problem ❌

• High costs for electricity drawn from the grid
• Consumption sometimes occurs outside of sunny hours
• Excess, inexpensive PV electricity is fed into the grid
• The full savings potential of the PV system is not being utilized

The solution 🎯

👉 With the help of a battery storage system, excess PV electricity can be stored and used at a later time to further minimize the expensive electricity consumption from the grid.

👉 An electricity storage system pays for itself even faster through multiple uses, e.g. to avoid peak loads and/or as an emergency power supply.

👉 Use more affordable, self-generated solar power and reduce your operating costs with a power storage system

The advantages at a glance:

• Increase your return on investment for your PV system with electricity storage
• With electricity storage, even less expensive electricity consumption from the grid is possible
• With electricity storage, you become even more independent from electricity price increases
• Generally fast amortization

• Electricity storage systems increase self-consumption rates and cut off expensive peak loads
• Flexible energy storage solutions save costs and minimize the effort required for potential retrofits
• Cost savings increase competitiveness
• Planning certainty regarding energy costs.

Automation 🤖

Automation (see robotics) can not only reduce further costs, it also helps with:

• Reduction/minimization of picking errors, see also:

  ☑️ Warehouse optimization with order picking: 5 steps to increased productivity with optimized order picking

• Acceleration of order picking, see also:

  ☑️ Automated Warehouses – Autonomous Retail Systems

Large roof areas are not only ideal for solar installations, but in many cases also facilitate short payback periods for commercial energy storage systems. Warehouses and logistics companies are prime examples, especially when electric forklifts need to be charged after work.

In general, the following factors have a positive effect on the return on investment through self-consumption optimization:

• Large roof areas
• High electricity consumption
• Electricity consumption outside of daylight hours
• High electricity price

Typical examples of suitable businesses are:

• office building
• Craftsmanship
• agriculture
• warehouses
• Industry and production

Everything from a single source: ground-mounted and rooftop solar solutions specifically tailored to your photovoltaic system! Refinance or offset your future with your own electricity generation.

Find advice and solutions here 👈🏻

Consultation and planning including a non-binding cost estimate. We connect you with strong partners in photovoltaics.

Find advice and solutions here 👈🏻

We have a regional presence throughout the German-speaking world. We have reliable partners who will advise you and implement your wishes.

Get in touch with us 👈🏻