A New York-based solar energy firm has signed a contract with a food manufacturer in Cebu covering a 100-kilowatt solar rooftop system, as more businesses turn to producing their own electricity.
UGE International Ltd., which caters to the commercial and industrial sector, said in a statement the 100-kw capacity was just the initial size of the project. It was expected to save London Biscuit Co. (Lonbisco) P25 million over the next several years.
According to UGE, its products allow commercial and industrial clients to enjoy more affordable and reliable energy as the company provides readily available no-cash-out financing, and the payback period is less than six years.
The company said the project with Lonbisco would similarly be undertaken through a financed contract.
UGE said that through its financing scheme, Lonbisco would save about 40 percent on energy costs from the electricity provided through the rooftop system.
“Energy costs in the Philippines are some of the highest throughout Asia, while solar costs continue to decline, making it a ‘win-win’ for all parties involved,” the company said.
The contract with Lonbisco is the first one that UGE entered into after the closing of its inaugural “project green bond” last week.
Through this issuance, UGE raised $500,000, which enables the company to provide project financing to qualified clients in each of its three key markets—New York in the United States, Toronto in Canada and Cebu in the Philippines.
In August, UGE completed a 1.26-megawatt solar project for Philippine Spring Water Resources Inc. (PSWRI), which is expected to help the bottled water firm save P20 million yearly in power expenses.
This latest project is for PSWRI’s facility in Mandaue City in Cebu, and is the second of a three-phased, 3.5-MW rooftop solar system portfolio intended for three plants where drinking water is bottled under the Nature’s Spring brand.
The first phase involved UGE Philippines installing a 475-kW rooftop system last year.
The entire 3.5-MW package for PSWRI is designed to generate a total of 4.9 million kW-hours of solar energy yearly.
According to the International Renewable Energy Agency, more companies in 75 countries across the world—including the Philippines—are getting their electricity from renewable energy sources, and corporate demand is expected to continue rising.