A Comprehensive Guide to Solar Street Light Costs and ROI

Cost Analysis of Solar Street Lights vs Traditional Street Lights

Understanding Your Needs

After understanding your needs, I will detail the costs, installation costs, and maintenance costs of solar street lights, incorporating some overseas cases, while also calculating the return on investment (ROI) and comparing with traditional street lights.

Cost Comparison between Solar Street Lights and Traditional Street Lights

1. Initial Investment Cost

• Solar Street Lights
  • California, USA Case: The initial investment for installing 100 solar street lights in a small town in California is $120,000, averaging $1,200 per light.12
  • Queensland, Australia Case: The initial investment for installing 50 solar street lights in a community in Queensland is AUD 65,000, averaging AUD 1,300 per light.
• Traditional Street Lights
  • California, USA Case: The initial investment for installing 100 traditional street lights is $80,000, averaging $800 per light.
  • Queensland, Australia Case: The initial investment for installing 50 traditional street lights is AUD 40,000, averaging AUD 800 per light.

2. Installation Cost

• Solar Street Lights Installation Cost
  • California, USA Case: The installation cost per light is $200, with a total installation cost of $20,000.
  • Queensland, Australia Case: The installation cost per light is AUD 200, with a total installation cost of AUD 10,000.
• Traditional Street Lights
  • California, USA Case: The installation cost per light is $200, plus costs for transmission lines and transformers, resulting in a total installation cost of $40,000.
  • Queensland, Australia Case: The installation cost per light is AUD 200, plus costs for transmission lines and transformers, resulting in a total installation cost of AUD 20,000.

3. Maintenance Cost

• Solar Street Lights Maintenance Cost 
  • California, USA Case: The main maintenance cost is replacing batteries every 5 years, with a battery cost of $400 per light, resulting in a total maintenance cost of $80,000 over 50 years.
  • Queensland, Australia Case: The main maintenance cost is replacing batteries every 5 years, with a battery cost of AUD 400 per light, resulting in a total maintenance cost of AUD 40,000 over 50 years.
• Traditional Street Lights
  • California, USA Case: Annual maintenance costs include replacing bulbs and repairing transformers, averaging $100 per light per year, resulting in a total maintenance cost of $100,000 for 100 lights over 10 years.
  • Queensland, Australia Case: Annual maintenance costs include replacing bulbs and repairing transformers, averaging AUD 100 per light per year, resulting in a total maintenance cost of AUD 50,000 for 50 lights over 10 years.

4. Electricity Cost

• Solar Street Lights
  • Electricity cost is $0.
• Electricity Cost Calculation for Traditional Street LightsCalifornia, USA CaseAssuming each light has a power of 100 watts and operates for 10 hours a day at a cost of $0.15 per kWh, the total electricity cost for 100 lights over 10 years is calculated as follows:

      Total Electricity Cost (USD) = 
      Number of Lights × Power per Light × Operating Hours per Day × Days per Year × Years × Cost per kW

  Simplifying this gives:

      So Ptotal = 100 × 100 W × 10 hrs/day × 365 days/year × 10 years × 0.15 USD/kWh ÷ 1000
      = 54,750 USD

  Queensland, Australia Case

  Assuming each light has a power of 100 watts and operates for 10 hours a day at a cost of AUD 0.20 per kWh, the total electricity cost for 50 lights over 10 years is calculated as follows:

      Total Electricity Cost (AUD) = 
      Number of Lights × Power per Light × Operating Hours per Day × Days per Year × Years × Cost per kWh

  Simplifying this gives:

      So Ptotal = 50 × 100 W × 10 hrs/day × 365 days/year × 10 years × 0.20 AUD/kWh ÷ 1000
      = 36,500 AUD

Comprehensive Cost Analysis

California, USA Case

• • Initial Investment Cost: Solar Street Lights: $120,000; Traditional Street Lights: $80,000
  • Installation Cost: Solar Street Lights: $20,000; Traditional Street Lights: $40,000
  • 10 Year Maintenance Cost: Solar Street Lights: $80,000; Traditional Street Lights: $100,000
  • 10 Year Electricity Cost: Solar Street Lights: $0; Traditional Street Lights: $54,750
  • 10 Year Total Cost: Solar Street Lights: $220,000; Traditional Street Lights: $274,750

• Investment Return Rate (ROI):
  • Total Revenue (B): $54,750
  • Total Cost (C): $120,000
  • Lifetime (n): 20 years

  The formula for ROI is:

  ROI = (NPV / C0) × 100%

  The formula for Net Present Value (NPV) is:

  NPV = -C0 + (B - C) × ((1 + i)n - 1) / (i(1 + i)n)

  Substituting the data:

  NPV = -120,000 + 54,750 × ((1 + 0.10)20 - 1) / (0.10(1 + 0.10)20)

  NPV = -120,000 + 54,750 × 8.5136 = -120,000 + 466,112.4 = 346,112.4 USD

  Therefore, the ROI is:

  ROI = (346,112.4 / 120,000) × 100% = 288.43%

Dynamic Payback Period (n_dp):

• Initial Investment C₀ = 40,000 USD
• Annual Net Revenue (B – C) = 10,000 USD
• Social Annual Interest Rate i = 10%

The formula for dynamic payback period is:

ndp = ln((B - C) / (i C0) + 1) / ln(1 + i)

Substituting the data:

ndp = ln((10,000 / (0.10 × 40,000)) + 1) / ln(1 + 0.10)

ndp = ln((10,000 / 4,000) + 1) / ln(1.10)

ndp = ln(2.5 + 1) / ln(1.10) = ln(3.5) / ln(1.10) = 1.2528 / 0.0953 ≈ 13.15 years

Queensland, Australia Case

• • Initial Investment Cost: Solar Street Lights: AUD 65,000; Traditional Street Lights: AUD 40,000
  • Installation Cost: Solar Street Lights: AUD 10,000; Traditional Street Lights: AUD 20,000
  • 10 Year Maintenance Cost: Solar Street Lights: AUD 40,000; Traditional Street Lights: AUD 50,000
  • 10 Year Electricity Cost: Solar Street Lights: AUD 0; Traditional Street Lights: AUD 36,500
  • 10 Year Total Cost: Solar Street Lights: AUD 115,000; Traditional Street Lights: AUD 146,500

Investment Return Rate (ROI):

• Total Revenue (B): AUD 36,500
• Total Cost (C): AUD 65,000
• Lifetime (n): 20 years

The formula for ROI is:

ROI = (N PV / C0) × 100%

The formula for Net Present Value (NPV) is:

NPV = -C0 + (B - C) × ((1 + i)n - 1) / (i(1 + i)n)

Substituting the data:

NPV = -65,000 + 36,500 × ((1 + 0.10)20 - 1) / (0.10(1 + 0.10)20)

NPV = -65,000 + 36,500 × 8.5136 = -65,000 + 312,643.4 = 247,643.4 AUD

Therefore, the ROI is:

ROI = (247,643.4 / 65,000) × 100% = 380.99%

Dynamic Payback Period (n_dp):

• Initial Investment C₀ = 25,000 AUD
• Annual Net Revenue (B – C) = 7,300 AUD
• Social Annual Interest Rate i = 10%

The formula for dynamic payback period is:

ndp = ln((B - C) / (i C0) + 1) / ln(1 + i)

Substituting the data:

ndp = ln((7,300 / (0.10 × 25,000)) + 1) / ln(1 + 0.10)

ndp = ln((7,300 / 2,500) + 1) / ln(1.10)

ndp = ln(2.92 + 1) / ln(1.10) = ln(3.92) / ln(1.10) = 1.365 / 0.0953 ≈ 14.32 years

Conclusion

Although the initial investment cost of solar street lights is higher, their long-term operating costs are lower, maintenance costs are reduced, and significant savings on electricity costs can be achieved. Therefore, in the long run, solar street lights are a more economical and environmentally friendly choice. Here’s a summary of the two overseas cases:

• California, USA Case:
  • Initial Investment Cost: Solar Street Lights: $120,000; Traditional Street Lights: $80,000
  • Installation Cost: Solar Street Lights: $20,000; Traditional Street Lights: $40,000
  • 10 Year Maintenance Cost: Solar Street Lights: $80,000; Traditional Street Lights: $100,000
  • 10 Year Electricity Cost: Solar Street Lights: $0; Traditional Street Lights: $54,750
  • 10 Year Total Cost: Solar Street Lights: $220,000; Traditional Street Lights: $274,750
  • Investment Return Rate: 288.43%
  • Dynamic Payback Period: 13.15 years
• Queensland, Australia Case:
  • Initial Investment Cost: Solar Street Lights: AUD 65,000; Traditional Street Lights: AUD 40,000
  • Installation Cost: Solar Street Lights: AUD 10,000; Traditional Street Lights: AUD 20,000
  • 10 Year Maintenance Cost: Solar Street Lights: AUD 40,000; Traditional Street Lights: AUD 50,000
  • 10 Year Electricity Cost: Solar Street Lights: AUD 0; Traditional Street Lights: AUD 36,500
  • 10 Year Total Cost: Solar Street Lights: AUD 115,000; Traditional Street Lights: AUD 146,500
  • Investment Return Rate: 380.99%
  • Dynamic Payback Period: 14.32 years

Both cases demonstrate that solar street lights have significant economic advantages over the long-term and high ROI with relatively short payback periods. This makes them an attractive option for international clients seeking to achieve sustainable development and reduce operating costs.

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Comprehensive Guide to Installing Solar Street Lights