Computer customers currently pay for the following besides the computers themselves.
1. Energy costs
2. Power management (UPS) and energy back up system (generator and fuel) costs
3. Costs to “green” the energy
4. Cooling costs
5. IT costs (staff, training, hardware/software upgrades, lost productivity, etc.)
6. Space costs
Grid supplied energy costs more (at retail rate) to consumer, can be unstable (e.g., brown outs and spurious spikes) and undependable (power outages/blackouts), is environmentally unhealthy.
Energy Costs: Total energy costs can vary from $105 to $193 per year for each PC. In terms of energy rate, that is $120 per MWh on the low end to $220 per MWh on the high end. Typical PCs are assumed to consume about 0.9 MWh energy per year. Retail energy rates are also known to increase annually.
The SELC solution: Our energy will be provided at a constant rate of $103 per MWh and for the life of the contract. However, it should be noted that our price of $103 per MWh is a bundled price that includes huge discounts on costs related to cooling, space, IT services, etc., so it should not be compared to the energy rate our customers are paying to their utilities currently. In other words, if a client is now paying a lower energy rate than $103 per MWh, we can match that price, although they will not receive the same level huge discounts noted below. In any case, our solution will provide stabilized, clean energy and related services at lower cost than what our future customers are currently paying to the other traditional energy vendors.
Additionally, we keep an eye on the market closely and we currently see the cost of installation of renewable energy systems trending down. If that trends continues, our bundled price of $103 per MWh will be adjusted downward as well.
The SELC technology saves the consumer anywhere from %14 to 53+% and hedges 100% against potential increases in energy rates.
For the three customer segments (with 5,000, 10,000, 20,000+ computers), these energy savings will translate into the following:
For 5,000 computers: Annual energy savings will vary from $75K to over $500K, depending on the energy rate they currently pay.
For 10,000 computers: Annual energy savings will vary from $150k to over $1M, depending on the energy rate they currently pay.
For 20,000+ computers: Annual energy savings will vary from $300+K to over $2+M, depending on the energy rate they currently pay.
Note 1: SELC will provide online calculators in the coming months so you can plug in the type and number of computers your business owns and the current energy rate you pay in order to determine your own annual energy savings.
Note 2: Considerable R&D will be required to ensure this type of energy savings that SELC Corp has begun to undertake. Businesses are encouraged to contact us to discuss these solutions, terms, and our continually refined development timeline.
Power management/back up system costs: In order to mitigate the problem associated with the unstable/undependable energy source from the grid, computer customers use other devices such uninterruptible power supply (UPS), back up generators, etc. Such devices will not only require additional capital investments but also require technical staff to operate and maintain them.
The SELC solution: Energy is provided at a steady rate from a dedicated battery system. Energy from the renewable source is stored first as it becomes available and used as required to maintain a fully charged battery system all the time.
The SELC technology offsets 100% of this cost to the consumer, as part of the fixed, low energy cost.
Costs to green the energy: There are scenarios where computer customers may feel compelled to use renewable energy, for obtaining green certification, avoiding environmental penalties, extracting PR benefits, etc. Customers using grid supplied energy are left with no choice but to buy renewable energy certificates (RECs). While RECs present an alternative solution, they come at a price of $20 to $60+ per MWh. Or, a PC owner will have to buy RECs worth of $18 to $54+ per year to claim their computer is “green.”
The SELC solution: Energy is provided from green sources only (e.g., wind/solar/geothermal) so there is no need to buy RECs. Regular PCs become Green PCs with the SELC technology.
The SELC technology offsets 100% of this cost to the consumer, as part of fixed, low energy cost.
Cooling costs: Energy used to cool the computers is estimated at nearly 100% of the energy load itself. For example, a typical PC may require as much as 0.9 MWh of energy to maintain optimal system temperature. This will mean that the computer cooling costs may be from $105 to $193 per year.
The SELC solution: Through economies of scale and advanced rack placement methods, the SECL technology will keep the cost to below $52.5 per PC per year.
The SELC technology offsets 50% to 73+% on the cooling costs.
IT costs: It is determined that for the true cost of ownership (TCO) of PCs, which is $4000 in this example, nearly 80% (of the cost of a PC) is incurred in maintaining the PC through its typical 3-year life time. In other words, a PC that costs $800 to purchase, may cost the computer customer up to $3200 to maintain and operate during its life time. [Note: Energy and cooling costs are not included in this TCO analysis.]
The SELC solution: Through economies of scale, expert crew, and whole hardware/software products, that cost will be contained by 50+%.
The SELC technology offsets 50% or more of this cost, depending on the type of computer use required. For certain type of use (e.g., desktop applications), multiple cost containment options are available.
Space costs: Large, medium, and small businesses alike will have to house their computers within a data center compatible environment—with racks, cables, access space, etc.
The SELC technology offers a flat rate of $20 per PC for the life of the contract.