Case study : Motors
Find out how a textile manuafacturer using an operating lease to finance motors determined that they would be better off by about $663,000 over 15 years if they invested in an energy-efficient system.
A textile manufacturing company is developing a new production line. It needs to install motors with a combined capacity of 2,750kW. The motors will run approximately 8,000 hrs. p.a. with an average load of 75%.
How does the energy efficient system (EE) compare to the standard system?
|Cost to install ($)
|Operation and maintenance costs ($ p.a.)
|Electricity use (kWh p.a.)
|Equipment life (years)
|Electricity cost reduction in first year from the system ($)
|Simple payback period for the system (years)
|Simple payback period for the system, with marginal capital1 (years)
Financial option selected: Operating lease
The company wants a financial option that is off-balance sheet. Based on this preference, the company seeks an operating lease to finance its new efficient motors.
1This is the payback period for the energy-efficient (EE) option using the difference in capital outlay between the standard and EE equipment, rather than the full capital outlay for the EE equipment.
What would you like to do next?
Page last updated: 10 December 2015