Commercial Solar Panels - Is your business energy efficient?
Renewable energy and solar power for commercial properties
Big or small, your business can benefit from solar energy. Rising electricity costs and good roof space provided by commercial properties make a solar panel system a sensible investment. Whether your business is looking to save money, reduce its carbon footprint or secure its future energy supply, Mypower provides expert commercial solar installations with proven high yielding solar panels.
Are commercial solar panels right for my business?
The majority of a business premises electricity use is during the day which is why companies can significantly save money on their electricity bills. What's more, solar panels have no moving parts, so ongoing maintenance costs are minimal. High users of generated electricity can benefit the most. Bako Western, a wholesale distributor, installed 996 commercial solar panels and over the next twenty years are predicted £1.5 million in savings and earnings. Stuart Wilson, General Manager at Bako Western “I have no hesitation in recommending Mypower. Of special note was Ben Harrison’s attention to detail and energy, driving the project to a successful completion during our busiest period”.
Even small commercial operations with lower energy use can still see huge energy cost savings.
One of the biggest reasons for making the decision to install solar is for financial gain. At current installation costs, a solar PV system delivers electricity at a rate of around 5 pence per kWh including Operations & Maintenance costs. This compares with the current grid supplied rate of approximately 15p per unit.
In many cases your business solar panel system will return enough benefit to achieve a positive cash flow within twenty-four months when you finance the capital outlay.
Your solar PV investment will quickly cover its' outlay, offer reduced carbon footprint, and when your finance term completes, provide you with a sizeable portion of your energy solutions for free.
A fantastic win:win:win for your business.
Protect your business from rising grid supplied electricity costs
Within the next ten years, energy costs are predicted to double. Solar panels are a smart energy solution for commercial use that will effectively allow your business to forward buy your electricity at a set price of around five pence per unit. This means your business will never be exposed to energy price rises again which makes financial forecasting a lot easier.
Whilst the UK is making really positive strides to meet more of its electricity demand with low cost renewable energy, the price of grid supplied generated electricity is still going driven by supply and demand. With nuclear proving to be cost prohibitive and fossil fuels clearly not being the answer, there will need to be significant commercial and business investment in grid scale renewable generation, especially to meet the significant demands that the rise of the electric vehicle will place on our supply. EV charging creates a massive demand for electricity.
Protect your business' cost base by investing in your own clean electricity generation.
Payment for exported (unused) electricity
Energy companies are keen to purchase excess electricity from businesses generating their own electricity. Once the required export meter setup is in place, it is simply a matter of agreeing a contract with one of the many energy companies. They will be keen to buy your clean energy at wholesale rate, to then sell on to their customers at the prevailing retail rate.
Commercial solar PV installations provide a solid return on the investment. Whilst the end of the Feed-in Tariff made residential installations more challenging to financially justify - compared to buying renewable energy from the grid - it's a different story for commercial solar system installations.
Why? The reason is a combination of cheaper solar PV technology, a 25-year fixed-cost for solar energy generation, minimal maintenance of the solar PV system post-installation, and continuing rises in the cost of National Grid-supplied electricity. Altogether, the result is solar energy that’s around 60-70% cheaper than buying from the National Grid. Additional enticements are the 100% asset finance available and the annual investment allowance which can offset the capital cost against income tax in year one.
As an example: a roof space of 36m x 9m can accommodate a 50kW system generating 48,000kWh/year of electricity. The system costs around £37,500 but will provide £5,700 in savings in the 1st year (assuming 70% of the electricity is used on site), a 15.2% ROI, and have a payback time of <7 years with a panel warranty of >25 years and a 10-year inverter warranty.
Sound too good to be true? Below is a comparison chart illustrating how the figures relate to the above 50 kW example from 2012 to now.
Supply & install costs
ROI year 1
|7.0 years||6.3 years||7.4 years||6.6 years|
Typical SME grid electricity price
Equivalent forward purchase price of Solar electricity fixed for 25 years (includes capex & O&M costs)
Difference between solar and grid electricity price
What about Battery Storage?
At present, in most situations where a business is looking to maximise the onsite usage of its own renewable energy generation for commercial benefit, it does not make sense to install solar batteries. The situation is fluid though, with costs of batteries coming down and the price of grid supplied energy continuing to rise. It is, however, currently more cost effective to sell excess solar generation to the grid, and buy back electricity (preferably renewable) when required, than to install a battery.
This dynamic changes if other considerations are taken into account, such as solar batteries being used as a backup supply for critical circuits in the event of a power cut. In this scenario, the battery costs may well be justified for keeping critical systems running whilst mains power is restored. Please contact us to discuss your specific scenario and requirements.
Reducing your carbon footprint
Generating your own business solar energy will achieve significantly reduced carbon footprint. It may give you a competitive edge over peers who are exposed to rising electricity prices - not to mention that some of our customers have won contracts based on their green credentials. Wiles Greenworld, a London based stationary supplier, are working towards a zero-carbon operation. Their 81.8 kW solar rooftop installation from Mypower offsets 28 tonnes of carbon per annum whilst offering income and savings of over £14,000 each year.
Looking for more information and advice?
If you have thought about installing solar but have been put off by the early 2019 removal of the FiT payments, then please don't. Talk to us at Mypower and we can offer advice and show you the number on how you can benefit. Call us on 01242 620894 or visit our contact page.
"Mypower’s price in the tender process was competitive and following my research on Mypower and verifying their references I awarded them the contract based on professionalism, attention to detail and price as well as their complete project management offering.
Making any new investment into technology that is an unknown to you takes a lot of research, meeting numerous suppliers and getting a consensus of target results to be achieved. After my detailed research I always felt a roll out to a bigger system was likely. I engaged with an engineer to help me with the final selection. Ben Harrison of Mypower worked hard to gain the order, planned and installed the system with a very high degree of professionalism. We are very happy with the results to date."
Stuart Wilson, General Manager, Bako Western