Powerstar as a Service Business Case: 5 year comparison

Following an article published by Powerstar’s Chief Financial Officer, Robert Macklin, on 4 May outlining the benefits of funding an energy saving project through Powerstar as a Service, Powerstar has created the below business case to demonstrate how the ‘As a Service’ funding solution can work for multi-site organisations to save money in both the short and long term.

The Business Case

The way businesses seek to acquire high-value products and services is transitioning to a heavily serviced model, but it is important to explore exactly how these funding models work when subjected to the bespoke specifications of each business and their unique requirements. Powerstar as a Service was created to meet the shifting demands of Powerstar’s clients, who required energy and carbon reducing project through a flexible funding option that didn’t consume a large portion of the company’s available capex upon implementation.

To that end, below represents an example of how Powerstar as a Service could work for the first five years when compared with upfront purchase, where a staggered roll-out is required due to capex restrictions.

Powerstar as a service business case

In the above example, Company B is seeing a much greater return on investment for the implemented project, whereas Company A will not start to benefit from the projects full benefits until after the final systems have been installed, 5 years after the project begins.

In addition, Company A is funding the project through their own capital, whereas Company B is utilising third-party capital, reducing risk and maximising on the cost benefits available through the energy saving project.

The inefficiency expenses displayed on the table represent the potential savings that Company A misses out on over the 5 years it takes them to implement the project.

Company B will also receive additional benefits from the project, such as:

  • Comparability of all sites for Profit & Loss (P&L) / Cost Centre review
  • Prolonged life-span of on-site electrical equipment for the full 5 years
  • Fewer electrical equipment repairs and replacements
  • Reduced risk as responsibility for the energy saving equipment lies with the provider

For more information about Powerstar as a Service and the benefits it can provide your company when delivered as a fully tailored funding solution, contact Powerstar on 01142 576 200 or by emailing [email protected].

LATEST NEWS

Powerstar partners with renowned specialist distributor Thorne & Derrick

Powerstar, UK manufacturer of leading-edge smart energy solutions, has announced a new partnership with Thorne & Derrick International to help bolster its smart transformers offering for energy conscious businesses, allowing them to improve their existing high voltage (HV) infrastructures, maximise efficiencies and reduce electricity consumption and costs with a solution that enables real-time asset monitoring...

STAY IN TOUCH WITH US...