Sustainable Procurement

Whole of Life Cost vs. Purchase Price

Due to the ease of installation, low impact on the environment, and use of a free and naturally replenishing clean renewable power source, the sun, solar lighting has become popular.

Sustainable procurement incorporates many factors like ethical labor, social responsibility, and environmental impacts into the purchasing decisions, and going beyond traditional procurement practices focused solely on purchase price alone.

By undertaking a life cycle cost analysis (LCCA) before purchasing, you can evaluate long-term economic benefits of environmentally and socially responsible practices, such as waste disposal costs and the opportunity to repair, repurpose, reuse, or recycle the product within a circular economy.

Solar path lights along headland lighthouse

Life Cycle Cost Analysis (LCCA)

LCCA is used to evaluate the overall cost of a solar light, from the initial asset cost (CAPEX), the assets ongoing operation, maintenance, and eventual disposal and/or replacement (OPEX).

Initially evaluating the asset consider:

Product:

  • 1. Design (is it an original design or cheap copy)
  • 2. Materials used in manufacture
  • 3. Overall finish quality
  • 4. Is it fit for purpose
  • 5. Are there limitations, that could expose compliance or liability risk

Warranty Term and Conditions:

  • 1. Length of term – should be no less than 10 years
  • 2. Critical components included (i.e. battery & pole)
  • 3. Critical components not covered or for full term
  • 4. Is warranty local or from overseas manufacturer
  • 5. What is overseas manufacturer’s warranty term

When undertaking an LCCA you should consider:

CAPEX: Capital Expenditure including

  • 1. Asset purchase price
  • 2. Delivery of asset/s
  • 3. Packaging: type, disposal, environmental impacts
  • 4. Installation and commissioning

OPEX: Operational Expenditure including

  • 1. Service costs: Routine maintenance, and inspection frequency.
  • 2. Maintenance costs: Repairs, upkeep, upgrades of asset, warranty exclusions.
  • 3. Replacement costs: Spare and replacement parts, labour cost.
  • 4. Disposal costs: Decommissioning, safe asset disposal/removal, up/recycling.

Simple Value for Money Analysis (VFMA)

To calculate procurement on a value for money basis, using the solar light manufacturer’s “actual warranty term” (not resellers), which is how long the actual product manufacturer “expects their solar light to remain reliable” before components, and/or the complete asset requires replacement.

Using this warranty term assumptions, the asset cost on a per annum basis can be calculated over a 10-year commercial operational period.

Warranty Term Asset Cost Comparison

3 year – Very Short Life Cycle–

(excl. costs of initial installation, labour, transport, taxes, end of life disposal, and battery or complete asset replacement costs)

$400 ÷ 3 years = $134 per annum

  • 2-3 asset replacements over 10 years
  • Battery warranty term from 0-1 years
  • Pole/mounting warranty 0-3 years
  • Higher transportation costs
  • Higher additional labour costs
  • Higher disposal costs
  • Extreme levels of e-waste created

5 year – Short Life Cycle–

(excl. costs of initial installation, labour, transport, taxes, end of life disposal, and battery or complete asset replacement costs)

$600 ÷ 5 years = $120 per annum

  • 1-2 asset replacements over 10 years
  • Battery warranty term from 0-3 years
  • Pole/mounting warranty 0-5 years
  • High transportation costs
  • High additional labour costs
  • High disposal costs
  • Excessive levels of e-waste created

10 year – Long Life Cycle

(excl. costs of initial installation, labour, transport, taxes, end of life disposal)

$900 ÷ 10 years = $90 per annum

  • No asset replacement
  • No battery replacement
  • No pole/mounting replacement ≥ 30 years
  • Single transportation cost
  • Single installation labour cost
  • Very low disposal cost
  • Minimal environmental impact

FAQ’s

Yes, solar bollard lights utilise free renewable energy from the sun, are easy to install, which is better for the environment than conventional lights that often rely on energy generated from fossil fuels, so minimising greenhouse gas emissions, and trenching for cables to connect to the grid, which is detrimental to the environment

No, stand–alone solar bollard lights in public areas have become very popular because they are easy to install, have a low environmental impact as trenching for cabling is required, and use a free renewable power source, which helps to reduce greenhouse gas emissions and mitigate climate change.

Yes, using solar bollard lights can significantly reduce light pollution, especially those with asymmetric LED arrangements and downward-facing optics reduce the amount of upward light spill and are designed to direct light where it’s needed. Making solar bollard lights a more environmentally friendly lighting option.

Yes, solar bollard lights are powered by the sun, which is a naturally replenishing and free resource. They are powered by solar panels that convert sunlight into electricity that recharges a battery, which is then used to illuminate the lights.

Yes, solar bollard lights using white lighting have a blue light spectrum that can have a detrimental impact on wildlife behaviour. The solution is to use LED chips having a light spectrum exceeding 580nm (Amber) or 620nm (Red), or in some instances, LED chips with a colour temperature below 2250 Kelvin, which minimises blue-white light and adverse impacts on wildlife.

Not all solar lights have the same environmental sustainability. Even though many claim they are green and recyclable, they are not. This is called greenwashing. Most non-commercial grade solar bollard lights have a short life cycle and create excessive e-waste, and why they are only warranted for 1 year up to 5 years at best.
However, Solar Bollard Lighting manufactures solar bollard lights with long life cycles that are 100% recyclable. The 2 Series range of solar bollard lights comes with an industry-leading 10-year product warranty, which makes them a sustainable procurement asset that offers the best return on investment over their life cycle.

Most solar bollard lights have very limited recyclability due to the material and component quality used in manufacturing and which creates excessive e-waste. The only exception is solar bollard lights made by Solar Bollard Lighting, which are 100% recyclable.

Nothing, as the energy is provided by the sun, which is naturally replenishing and a free resource. That is why solar lighting is so cost-effective and reliable.

It is important when purchasing solar lighting that the purchase price is not the only criterion when measuring value for money. Your ‘Return on Investment’ (ROI) should be calculated on the whole of life asset cost.
A simple way to calculate value for money is to use the product warranty term, which is how long manufacturers of solar lighting expect their product to be reliable and will provide you with an annual cost as shown in this example of a solar bollard light with a 5-year warranty versus one with a 10-year warranty (excl. installation, labour, transport, taxes).
3-year warranted product – Price $400 ÷ 3 years = $133.34 per annum 5-year warranted product – Price $600 ÷ 5 years = $120 per annum
10-year warranted product – Price $900 ÷ 10 years = $90 per annum

Have Questions? For more information check out our FAQs

FAQs

Solar Bollard Lighting acknowledges the Traditional Owners and Custodians of the lands and waters upon which we depend.
We recognize their continuing connection to land, waters and culture and we pay our respects to Elders past, present and emerging.

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