A Hole-in-One! Increase Cash Flow and Improve Operating Ratios at a Country Club with Solar Energy

Memberships and “profitability” of country clubs and golf courses have a tendency to fluctuate according to how the economy is performing, as golf and leisure activities are considered discretionary expenses by most households.  One way to lessen the negative impact during challenging economic times is to lower operating expenses and lock in favorable rates.  Transition Energy offers such a solution, and will fund, own, and operate a solar energy system on your site, selling the electricity to you for less than you currently pay your electric utility.  

Transition Energy Saves Millions for Country Club 

Transition Energy offered a prominent country club in southern California a low-cost solar Power Purchase Agreement (PPA), in which Transition Energy would pay for the construction of the system, and own, operate, and maintain it for the long-term asset life.  In this type of arrangement, the country club agrees to buy only the electricity produced by the solar energy system, eliminating the need for financing the project and avoiding the hassle and expense of maintaining it.  

This PPA would provide the following financial benefits over the asset life:

• Approximately $7 million in savings compared to the amount they would pay to the electric utility, with a Net Present Value of about $3 million.

• A 21% decrease in electricity expense in the first year, achieving savings of about $100,000. This goes directly to the bottom line, and is roughly equivalent to a $700,000 increase in top-line revenue, increasing each year!

• A certain, stable increase in price inflation of 1.5% annually.  Compared to uncertain and volatile increases in utility prices, this provides a great deal of value for budgeting purposes.

• A very low up-front investment (about $5,000), to assist with project development costs.  This low-cost approach allows the club to focus its capital on investments that relate to its core business.  

• Immediate positive cash flow from the day the solar energy system is turned on.

Other benefits

While the financial aspect is certainly compelling, the project also provides other benefits, including…

• Renewable energy source.  Among the obvious environmental and health benefits, solar energy is a proactive way to address the likelihood of mandated energy goals, as is the case with many governments, businesses, and other organizations.
• Covered parking; “carports” are very welcome during the intense sun and heat of the summer.
• Electric vehicle charging.  Solar energy is the perfect solution to EV charging, especially while the club member often spends hours on the property grounds.  

A hole-in-one or par-for-the-course?

Cutting an expense immediately by 15-20% with very little cost or risk often sounds too good to be true for many of the organizations we speak with.  But it’s the truth, and a lot of it has to do with the generous government incentives being thrown at renewable energy projects.  However, many country clubs are non-profit organizations, and can’t monetize these incentives.  The alternative is to stick with the same monopolistic, antiquated electric utility you’ve been dealing with for decades.  Transition Energy’s PPA solution is the hole-in-one you’ve been waiting for.  

Free evaluation

If you want to improve your club’s financial health, Transition Energy will provide a free evaluation, indicating whether our solar PPA might be a good solution.  To get started, we’ll just need to analyze your electricity usage and have an introductory call.  Once we analyze your data and evaluate your site, we will send you our preliminary report with the results, typically within just a few days.  To tee off, let’s get the data from your utility… CLICK HERE.