As energy costs continue to rise, load-shedding prevails, and pressures to become more sustainable proliferate, it’s little wonder that many businesses are getting smarter about their energy monitoring and management. Smart energy management systems such as PowerRadar™ offer a solution to modern-day challenges by automating data collection, providing real-time insights, and allowing businesses to develop a data-driven energy strategy to reduce costs and downtime.

Implementing an energy optimisation system can lead to significant cost savings over time. While traditional measuring tools often overlook fluctuations in energy consumption (resulting in inefficient usage and unnecessary costs), a solution like PowerRadar™ provides accurate data throughout the day, allowing businesses to identify opportunities for energy savings, such as optimising usage patterns, integrating renewable energy sources like solar panels and batteries, and reducing overall energy consumption.

For businesses considering implementing PowerRadar™, we offer two pricing models: rental and purchase. Both options have their merits, but which one is the right choice for your business?

Energy management system cost: rental option (with additional options)

With the rental option, you pay a monthly fee to use the energy management sensors (starting from R856* per sensor, depending on sensor size) along with an 8% monthly subscription fee to access the smart energy management software. For example, if you opt for ten small sensors priced at R856 each per month, plus an 8% subscription fee, the total monthly cost would be R9,244.80.

The advantage of the rental option is its affordability, making it accessible for businesses of all sizes, especially those with limited upfront capital. The flexibility of monthly payments also allows for easier budgeting and scalability as business needs change.

The rental option includes:

• Access to the platform for up to five users
• Training
• Detailed monthly reports and recommendations
• Monthly site visits
• Uncapped data for the onsite router
• Two free technician call-outs per month

Energy management system cost: purchase option

The purchase option involves buying the sensors outright, starting at R6,854* per sensor. With this option, you own the equipment, which can work for businesses with larger budgets. The cost to access the software is 5% of the total purchase cost per month.

The purchase option includes:

• Access to the platform for up to 5 users
• Training
• Two free technician call-outs

Rent or buy? Analyse the ROI

Whether you choose to rent or purchase a smart energy management system depends on your business needs, budget, and long-term goals.

Specifics for your business to consider:

• The size of your operation: How big is your business, and how many areas or departments do you want to focus on and measure separately?
• Long-term goals: Does your established business have consistent long-term energy needs?
• Budget constraints: If your business has limited upfront capital, the rental option may be more feasible.
• Scalability: Consider the scalability of each option. Will your business need to expand its energy management system in the future? The rental option may offer more flexibility in scaling up or down as needed.
• Management: Do you have the capacity to take care of the system yourself, or would you benefit from monthly management, reports and recommendations? Businesses without the expertise to manage solar operations in-house can benefit from the hands-on rental model, which includes monthly site visits, technician call-outs, and reporting.

Top tip: think about the specifics of your business energy needs

For example, a hospital may want to monitor energy usage in different departments, such as clinics, kitchens, and offices. This would require more sensors than, say, the sweet shop at the airport, which only needs one sensor. The more sensors, the higher the purchase or rental cost. If your budget only allows for a certain amount of sensors (for rental or purchase), our team can help you identify priority areas or a phased approach.

Implementing an energy optimisation system can result in significant cost reductions

At the end of the day, the potential ROI comes down to the specifics of your business’s needs and consumption. Let’s go back to the operation with an energy management system cost of R9,224.80 rental per month—for the system to achieve a direct ROI, system implementation would need to result in interventions that reduce the business’ energy bill by R9,224.80 per month. It certainly is possible. For example, as a result of smart energy management and the adoption of innovative solutions, one of our clients (a hospital) witnessed a staggering 43% reduction in energy expenditure when comparing their January 2023 bill to their January 2024 bill.

You may also be interested in: How South Africa’s First Real-Time Energy Management Solution Can Build Your Bottom Line

So, should I rent or buy an energy management solution?

Ultimately, the decision to rent or purchase a smart energy management system depends on your business’s individual circumstances and objectives. For clients wanting flexibility and affordability, we recommend the rental option, but we are committed to helping you navigate the decision-making process that’s right for you. We provide expert guidance and tailored solutions based on your needs, assisting you in prioritising areas for measurement and suggesting appropriate sensor sizes and payment options.

Regardless of your choice, investing in smart energy management is a step towards a more sustainable and cost-effective future. To learn more about how THOHO Energy can assist you in optimising your energy consumption and achieving your sustainability goals, contact us today.

*Please note that all prices mentioned in this article are indicative; accurate quoting requires a site visit.