In recent years, businesses of all sizes have been increasingly adopting commercial solar panels to reduce their environmental impact and save on energy costs. Solar panel systems offer numerous advantages, such as lower utility bills, reduced carbon footprint, and the potential for additional income through energy sales.
In this article, we will explore the benefits of using solar panels for businesses, delve into the costs involved, discuss installation considerations, and highlight both the advantages and disadvantages of commercial solar PV systems.
Benefits of Commercial Solar Panels
Cost Savings: One of the primary benefits of commercial solar panels is the significant cost savings they can offer. By generating your own electricity, you can reduce your reliance on the grid and lower your utility bills.
Even small businesses can save hundreds of pounds per year, while larger industrial solar panel systems have the potential to generate profits by selling excess energy back to utility companies.
Environmental Sustainability: Switching to commercial solar panels demonstrates a commitment to sustainable practices and helps reduce your business’s carbon footprint. Solar energy is renewable and carbon-neutral, meaning it does not contribute to greenhouse gas emissions. By utilizing solar power, businesses can play a part in mitigating climate change and promoting a greener future.
Energy Independence: Solar panels allow businesses to generate their own electricity, providing a level of energy independence. By producing your own power, you are less reliant on the grid and the potential fluctuations in energy prices. This stability can provide peace of mind and protect your business from escalating utility costs.
Enhanced Corporate Image: Adopting commercial solar panels demonstrates your business’s commitment to sustainable practices and environmental stewardship. This can enhance your corporate image and reputation among customers, employees, and the community. It showcases your business as an environmentally responsible and forward-thinking organization, which can attract eco-conscious customers and partners.
Long-Term Financial Stability: Investing in commercial solar panels provides long-term financial stability for your business. As energy costs continue to rise, generating your own electricity shields your business from these increases, allowing for better budget planning and financial stability. Additionally, solar panels have a long lifespan, typically 25 years or more, providing a reliable and consistent source of energy for decades.
Government Incentives and Grants: Governments often provide incentives and grants to encourage businesses to adopt renewable energy sources like solar power. These incentives can significantly offset the installation costs and accelerate the return on investment for commercial solar panels. Research and take advantage of local, regional, or national programs that offer financial support for solar panel installations.
Educational Opportunities: Installing commercial solar panels can provide educational opportunities for your employees, customers, and the local community. It allows you to showcase your sustainable practices and educate others about the benefits of renewable energy. This engagement can foster a sense of pride among your employees and encourage them to embrace sustainable behaviours both in and outside the workplace.
Energy Security: Solar panels offer a level of energy security, especially during power outages or disruptions. With an integrated solar battery storage system, your business can store excess energy generated during the day and use it during periods of low sunlight or high demand. This ensures continuous power supply and minimizes business disruptions during unforeseen circumstances.
Cost of Commercial Solar Panels
The cost of commercial solar panels varies depending on factors such as roof size, energy requirements, and the number of panels needed. On average, small to medium sized businesses can expect to invest between £16,000 and £70,000.
It’s important to evaluate your energy consumption and calculate the potential savings to determine if solar panels are a feasible option for your business. Additionally, tax relief may be available for commercial solar panel installations, further reducing the overall cost.
The primary expenses associated with installing commercial solar panels include the cost of the panels themselves and the inverters. Installation costs can vary based on the system’s size and complexity.
As a rough estimate, the budget is around £0.2p per watt fitted, which means a 10 kW system may cost approximately £2,000 (excluding VAT) for installation. Larger commercial systems may require additional labour, resulting in higher installation costs. Once the initial installation is complete, ongoing maintenance costs are generally low.
In some cases, planning permissions may be required before installing commercial solar panels. If you’re building or property site has historical or heritage designations, it’s essential to obtain the necessary permissions. When working with a reputable solar panel installer, they can guide you through the planning process and help navigate any permissions needed for your specific location.
The maintenance costs for commercial solar panels are generally low. Routine cleaning to remove dust and debris is recommended to ensure optimal efficiency. In most cases, professional inspections every four to six years are sufficient. However, if your solar panels are located on commercial buildings and are difficult to access, hiring a professional cleaner may be necessary.
Advantages of Commercial Solar PV
Reduced Utility Costs: Commercial solar panels can significantly lower your business’s utility costs. By generating your own electricity, you can reduce or eliminate your dependence on grid power, resulting in long-term savings.
Efficient Energy Production: Solar panels offer efficient energy production, and different panel materials have varying levels of efficiency. Monocrystalline panels are known for their high efficiency but are more expensive, while polycrystalline panels offer a more cost-effective solution. Thin-film panels are the cheapest to manufacture but have lower energy efficiency.
Tax Relief and Additional Income Potential: Installing commercial solar panels may make you eligible for tax relief, reducing the overall cost of the system. Additionally, businesses can generate income by selling excess energy back to the grid through programs like the Smart Export Guarantee (SEG).
Disadvantages of Commercial Solar PV
High Initial Investment: The upfront cost of installing commercial solar panels can be substantial, requiring a significant initial investment. However, the long-term return on investment and energy savings can offset this expense.
Weather Dependency: Solar panels are weather-dependent, meaning their efficiency can be affected by factors such as clouds, snowfall, or extreme heat. While solar panels will still produce energy even in less-than-optimal conditions, their output may fluctuate throughout the year.
Commercial solar panels offer numerous benefits for businesses, including cost savings, environmental sustainability, and energy independence. Despite the initial investment cost, the long-term return on investment and potential income from excess energy sales make commercial solar panels a worthwhile consideration.
By evaluating your energy requirements, calculating potential savings, and working with reputable installers, businesses can transition to solar power and contribute to a greener future while reaping the financial benefits.