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 electricity use for a business's premises is during the day, which is why companies can make a significant saving 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, commented: “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 see huge energy cost savings.
One of the biggest reasons for deciding to install solar is for financial gain. At current installation costs, a solar PV system delivers electricity at a rate of around 5p 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.
While 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 driven by supply and demand. With nuclear proving to be cost prohibitive and fossil fuels clearly not the answer, there needs to be significant commercial and business investment in grid scale renewable generation, particularly 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. While the end of the Feed-in Tariff made residential installations more challenging to justify financially - 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.
Sound too good to be true? The table below shows typical costs and returns from a 100kW commercial Solar PV install from 2012 to 2021. With grid electricity supplied prices rising and a fall in supply and install costs, it means that ROI and payback have improved.
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 the cost of batteries falling and the price of grid supplied energy continuing to rise. Currently, it is 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 while 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 a significantly reduced carbon footprint. It may give you a competitive edge over peers who are exposed to rising electricity prices - in fact, 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 while offering income and savings of over £14,000 each year.
"Mypower’s price in the tender process was competitive and, following my research on them and verifying their references, I awarded Mypower the contract based on professionalism, attention to detail and price as well as their complete project management offering.
Making any new investment in 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, then 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
Frequently Asked Questions
How long do solar panels last?
About 25 years
The industry standard life span for solar panels is about 25 years. This doesn’t necessarily mean that electricity is no longer generated through solar energy after this time frame, however it is likely that the amount of energy produced by solar panels will have reduced.
How much do commercial solar panels cost uk?
The cost of commercial solar panels in the UK is measured in pence per kilowatt. The average cost of commercial solar panels is between £16,000-£70,000 for small to medium sized businesses. However there are different factors which influence the cost of solar panels for businesses such as the amount of roof space, the amount of energy they consume and the number of panels used.
How big are commercial solar panels?
The typical commercial solar panel dimensions are between 77 inches by 39 inches. Commercial solar panels tend to be larger in size when compared to residential solar panels. Each commercial solar pv system is a similar size (100 kW) producing around 91,500 units p.a, using panels with a 25-year warranty and inverters with a 10-year warranty.
Are commercial solar panels worth it?
The average cost of producing commercial solar PV energy is 5p per kWh. Businesses which currently pay for national grid electricity are likely to see a 60-70% reduction in energy costs when they move across to solar energy. Therefore, commercial solar PV installations provide a worthwhile return on investment.
Have we captured your interest?
Mypower is highly experienced in supplying agricultural building solar panels.
If you would like more information along with the facts and the figures on how you can benefit from solar please
get in touch on 01242 620894 or visit our contact page.