Division Red: Prices continue to rise. Therefore, it is worth starting a solar park now
Entrepreneurs and individuals who installed solar parks last year may be very satisfied with the results – material prices have risen considerably in the meantime, and the sunny summer and increasing electricity prices have kept the productivity of panels high. However, the price hike continues, and experts suggest that investing in renewable energy should not be postponed under any circumstances.
“Considering that material and labor costs will continue to rise, and electricity prices also show no signs of decreasing, it is definitely worth undertaking the construction of an energy facility as soon as possible. The sooner you start, the sooner the payback period begins,” advises Alar Avloi, a board member of Division Red OÜ, specializing in the design, sales, installation, and monitoring of solar parks.
Another board member, Magnar Vipre, adds that indeed, solar panel prices have increased by more than 30% in the last two years, and the trend continues. “But the bigger issue is the so-called saturation of electricity substations. It’s no secret that there are already restrictions on connecting solar energy on Hiiumaa and several Estonian small islands because the infrastructure cannot handle such a large amount of electricity transmission.”
He also points out that the requirements for solar parks are becoming increasingly complex, and the process of obtaining permits is getting longer. Small producers with less than 500 kW capacity can sell the solar electricity produced for their own consumption to an appropriate electricity seller. Liabilities to increase the capacity of production directional throughput between the distribution network operator and the transmission network operator may extend the processing time by 90-190 days, so the issuance of a connection offer can take up to 150-340 days. In some cases, it is also necessary to pay a processing fee to Elering of 1600 euros + VAT.
This means that by applying for a permit now, construction could start around springtime. And that’s the right moment because panels cannot be installed on sloping roofs with heavy snow and ice, but solar parks can only be built on the ground during winters and on flat roofs.
Division Red specializes in designing and installing solar panels for both private and business clients. “”Today, when a client contacts us and provides their location and requirements, we assess the most suitable solution, for example, in case of roof obstructions or shadows falling on panels, we can use optimizers that switch off shaded panels individually, not all at once,”” explains Avloi.
A solution for cases where obtaining a connection permit from Elektrilevi is delayed or too expensive.
In recent years, there have been several cases where Elektrilevi’s price quote for connecting to the electricity grid has amounted to hundreds of thousands or even millions of euros. However, Avloi and Vipre suggest not being discouraged by overly large bills. “”The requirements for additional fees usually arise when industries or farms want to create a large energy park in places where substations are at risk of overload, and investments are needed to increase capacity. Another concern may also be the long processing time for permits, while the company has already allocated money for building a solar park and is ready, interested, and in need of electricity production.””
In recent years, there have been several cases where Elektrilevi’s price quote for connecting to the electricity grid has amounted to hundreds of thousands or even millions of euros. However, Avloi and Vipre suggest not being discouraged by overly large bills. “”The requirements for additional fees usually arise when industries or farms want to create a large energy park in places where substations are at risk of overload, and investments are needed to increase capacity. Another concern may also be the long processing time for permits, while the company has already allocated money for building a solar park and is ready, interested, and in need of electricity production.””
In such cases, Division Red offers a solution to business clients to build a solar park with limited electricity grid transmission. Thus, after obtaining approval from the local government, planning and installation can begin, and then the client can start reducing their fixed costs without connecting to the electricity grid.
The same solution is also suitable for individual clients who already have permission from the local government but have not yet received a response from the electric company due to time constraints. Meanwhile, the client can already start earning returns on their investment through their own consumption.
Our cooperation with Division Red is not very long, but it’s been positive, productive, and challenging for both parties. I met Alar Avloi by chance in Helsinki at the Kuljetus-Logistiikka 2019 logistics sector fair during a panel discussion on “”Future Technologies and Competencies,”” where environmental issues were discussed, and alternative solutions for reducing traffic emissions were debated. I knew Alar briefly before, but I was pleasantly surprised that he was also passionate about the topic, and that’s where I learned that Division Red cultivates and promotes a green mindset. Alar introduced me to Division Red’s perspective and comprehensive solution, which includes the design, installation, monitoring, and maintenance of solar panel parks. Division Red is beneficial for people who want to contribute to a cleaner environment through electricity produced by solar energy, and I highly recommend them to everyone because my personal experience has been so positive. After receiving the information, I seriously considered building a solar panel park, and within just a few months, we turned plans into a necessary solar energy-producing asset for the company.
Battery allows using cheap energy even during sunless times
It is particularly efficient to connect a battery or batteries to your solar park, which are charged by the sun to later consume the free electricity if necessary. Using a hybrid inverter, the battery can utilize solar energy when the station is not producing energy, as well as during power outages or when the electricity price would be too expensive from the grid. Additionally, the hybrid inverter can be set to store energy from the grid during cheaper periods, for example, in the sunless winter months, to use it during peak grid price hours.
“The payback calculation for solar panels depends on how much of your consumption can be covered by solar energy. The more solar energy you consume, the faster the payback period,”” says Vipre. “”We install panels on existing buildings and are increasingly involved in the design phase of new projects. The requirement for building energy efficiency states that today’s new buildings must meet Class A energy standards, and one way to achieve this is by using renewable energy, such as solar panels.”
For older buildings, it is important, according to him, that besides a strong structure, the roof is in perfect condition. “”Sometimes it makes sense to replace the roof before installing the panels because the lifespan of the panels is more than 25 years. It would be very costly to remove the panels a few years after installation because the roof needs to be renewed.””
Similarly, for industrial and commercial buildings, the strength of their structures is important, as well as the volume and time of energy use. For example, in shopping centers or office buildings, energy consumption may be higher in the morning and evenings when people are just arriving at work and leaving. It may turn out that installing panels facing east-west is more efficient than the typically considered south-facing installation. East-west panel configuration is also twice as light and has less wind resistance, making it the only option given the technical conditions of some specific building roof constructions.
Solar energy for condominiums has become a trend, allowing them to reduce the costs of solar energy for general lighting, corridor heating, and ventilation. Division Red’s experts are ready to present various solutions and discuss the profitability of solar energy both at seminars and condominium meetings.
The productivity of a solar park can be shared among multiple consumption points
“Many people don’t know that the productivity of a single solar park can cover multiple consumption points. For example, I use the solar panels on my house roof to cover the electricity consumption of my summer house,”” says Avloi. “”This means that if you have available land, it is worthwhile to build a ground park there, which, by the way, is the most productive among other options. And with this single park, you could successfully cover both the electricity costs of a rural and urban home from March to October.”
Division Red does not offer standard solutions but considers each client’s object and needs. The company deals with the design and documentation of solar parks, sales, installation, monitoring, and maintenance of solar panels. Monitoring is done with a specific device that allows real-time monitoring of the park’s productivity and network parameters. Additionally, Division Red installs surveillance systems for solar parks, enabling real-time monitoring of the park and reviewing recordings later.
Division Red’s goal is to make the process as straightforward as possible for its clients. The company helps with electricity grid connection agreements, handles documentation submission to the construction register, and also organizes electrical audits.