Division Red: Solar Park Development Should Start Immediately
Entrepreneurs and individuals who built solar parks last year can be very satisfied with the results – material prices have risen somewhat in the meantime, and a sunny summer and rising electricity prices kept the panels' efficiency high. However, price increases continue, and therefore, according to experts, it is by no means worth postponing investments in renewable energy.
"Considering that material and labor costs will continue to rise and electricity prices also show no signs of declining, it is certainly worth undertaking the construction of an energy facility as quickly as possible if you have the opportunity. The sooner you start, the sooner the payback period begins to tick," recommends Alar Avloi, a board member of Division Red OÜ, which deals with the design, sales, installation and monitoring of solar parks.
The company's other board member Magnar Vipre adds that indeed solar panel prices have increased by more than 30% in the last two years and growth continues. "But a bigger problem than that is actually the so-called saturation of electrical substations, or the lack of available capacity. It is no secret that on Hiiumaa and several other small Estonian islands, there are already restrictions on connecting to solar energy, because the infrastructure does not allow for the transmission of such large amounts of electrical energy."
According to him, the requirements set for solar parks are also becoming increasingly complex and the processing times for permit applications are lengthening. Small producers with a capacity of less than 500 kW can, in addition to consuming quality electricity, sell generated solar electricity to a suitable electricity retailer. Elektrilevi issues connection offers up to 15 kW within 60 days, and connection offers above 15 kW within 70 days. The processing of electricity producers' applications may require an increase in transmission capacity between the distribution network operator and the main network operator, which extends the processing time by 90-190 days, meaning that in total, the issuance of a connection offer can take up to 150-340 days. In some cases, Elering's processing fee of 1,600 euros + VAT also needs to be paid.
This means that if you apply for a permit now, you could start construction around spring. And this is a very good time, because you cannot install panels on a sloped roof with heavy snow and ice – in winter, you can only build parks on the ground and on flat roofs. Division Red deals with the design and installation of solar panels for both private and business clients. Today, a client makes a request to us, indicating their location and wishes. We assess what type of solution would be most efficient – for example, we can use optimizers for roofs with special slopes or shadows falling on panels, which switch off shaded panels one by one, not all at once," explains Avloi.
A solution for when getting a connection permit from Elektrilevi is delayed or too expensive
In recent years, there have been several cases where Elektrilevi's price offer for connecting to the electrical network has turned out to be several hundred thousand or even several million euros. Nevertheless, according to Avloi and Vipre, one should not despair over such a large bill. "Additional fees usually come when factories or farms want to create a large energy park in places where a substation is threatened with overload and investments need to be made to increase capacity. Secondly, the long processing time for obtaining a permit can also be a concern, while the company already has money allocated for building a solar park and is ready, interested and in need of electricity production."
Division Red offers business clients a solution in such cases to build a solar park with limited transmission of electrical energy to the grid. This way, you can start design and solar panel installation after obtaining a permit from the local municipality, and after that you can start reducing your fixed costs without connecting to the electrical grid. The same solution works well for private clients who already have local municipal permits but lack time as the electricity company has not yet managed to respond. In the meantime, the client can already start earning back their investment through their own consumption.
Rait Männa, V&V Veod OÜ
Our cooperation with Division Red has not been very long, but it has been positive, productive and challenging for both parties. I met Alar Avloi by chance at the Kuljetus-Logistiikka 2019 logistics sector fair in Helsinki, where a panel discussion on "Future technologies and competencies" touched on environmental issues and discussed finding alternative solutions to reduce traffic emissions. I knew Alari vaguely before, but was pleasantly surprised that he also held the topic close to his heart, and there I learned that Division Red cultivates and promotes a green mindset. Alar introduced me to Division Red's vision and comprehensive solution, which included solar panel park design, installation, monitoring and maintenance. Division Red is useful for people who want to invest in a cleaner environment through solar-generated electricity, and of course I recommend them to everyone because my personal experience has been so positive. After receiving the information, I began seriously considering building a solar panel park, and within just a few months we reached a point with Division Red where we went from plans to a solar energy-producing park needed for the company.
A battery allows you to use affordable energy even during times with little sun
Particularly effective is to connect your own solar park to one or more batteries, which are charged with sunlight so that the free electricity generated can be consumed later if needed. Battery bank use, thanks to a hybrid inverter, allows you to use solar energy when the plant is not producing energy, also in the event of a power outage or when electricity prices would be too expensive from the exchange. You can also set a hybrid inverter to, for example, store energy from the grid during winter when there is little sun at a more favorable price period, which you can then consume at a more expensive grid price.
"The payback calculation for solar panels comes from how much of your own consumption can be covered with solar energy. The more solar energy you consume, the faster the payback period," says Vipre. "We install panels on existing buildings and increasingly we are involved in the design phase of new projects. The energy efficiency requirement for buildings states that today's new buildings must meet class A energy classification, and one way to achieve this is to use renewable energy, such as solar panels."
For older buildings, he says it is important that in addition to a strong structure, the roof is in 100% condition. "Sometimes it makes sense to undertake a roof replacement before installing panels, because the lifespan of panels is more than 25 years. It would be very expensive to remove the panels again after just a few years of installation, as the roof would need renovation."
Also, in the case of industrial and commercial buildings, the strength of their structures is important, but also the volume and timing of energy use. For example, in shopping centers or office buildings, energy consumption may be higher in the morning and evening, when people are just arriving at work and leaving. It may turn out that instead of installing south-facing panels, which is considered most efficient, panels installed in the east-west direction are sufficiently efficient. By the way, east-west solution panels are also twice lighter and have lower wind resistance, which is why this solution may also be the only option when considering the technical conditions of a particular building's roof structure.
It has also become trendy for apartment cooperatives to use solar energy 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 solar energy payback both at seminars and at apartment cooperative meetings.
Solar park output can be distributed among multiple consumption points.
"Many people don't know that the output of one solar park can cover multiple consumption points. For example, I cover my summer house's electricity consumption with solar panels on my private house roof," says Avloi. "This means that if you have spare land, it's worth building a ground park there, which is also the one with the best output among other options. And with this one park, you could successfully cover both rural and urban home electricity costs from March to October."
Division Red does not make standard solutions, but is based on each client's object and needs. The company deals with solar park design and documentation, solar panel sales, installation, monitoring and maintenance. Monitoring is done using appropriate equipment, which allows you to monitor your solar park's productivity and grid parameters in real time. In addition, Division Red installs solar park surveillance systems, which allow real-time monitoring of the park and later review of recordings.
Division Red's goal is to make the process as easy as possible for its clients. The company helps conclude electrical grid connection agreements, handles submission of documentation to the building register and also arranges electrical audits.
