Commercial Solar Panels - Is your business energy efficient?
Solar panels for business - renewable energy
Big or small, your business can benefit from solar energy. High 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 are a solar panel company that provides expert commercial solar panels & installations.
Is commercial solar 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”.
Commercial solar panels can even benefit smaller operations with lower energy use, providing huge energy cost savings.
Financial savings with commercial solar
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 25-35p 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.
Our solar panels business will ensure that your commercial 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
The cost of electricity rose significantly in 2022, with many of our clients seeing two and three-fold increases in their bills. 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, and compares extremely favourably to the typical grid supplied rate in early 2023 of around twenty-five to thirty-five pence per unit.
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.
Delivering ROI in excess of 20%
Commercial solar PV installations provide a solid return on the investment. While the end of the Feed-in Tariff in 2019 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 commercial solar 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. Why wouldn't you choose commercial solar panels!
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 with a trusted solar business
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 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?
Expected to perform at a high level for 25 years
The typical industry 'performance warranty' on a solar panel is 25 years. In simple terms the 'performance warranty' relates to the output power of the panel, which is expected to degrade by a small amount year on year. Many manufacturers warranty their panels to be producing 80% of the power in Year 25 that they did in Year 1. Mypower utilises panels that are warrantied to produce around 85% of the output in Year 25. This doesn’t necessarily mean that electricity is no longer generated through solar energy after this time frame, it is just that the amount of energy produced by solar panels will likely to continue to reduce.
How much do commercial solar panels cost in the UK?
£75,000 to £100,000 for a 100kWp/250 panel system
Whilst solar panels constitute a significant proportion of the cost of a commercial solar installation, there are other factors and costs to consider too. Roof covering, accessibility of roof, electrical distribution setup and local grid connection considerations can all materially impact on the cost of a system. For a typical commercial system pricing can range from around £750/kWp to approximately £1,000/kWp, or £75,000 to £100,000 for the installation of a 100kWp/250 panel system. The cost of a solar PV system is typically recovered within the first 4-6 years of operation, sometimes less depending on the price of the grid supplied electricity it is replacing.
Commercial solar cost
The cost of a commercial can vary significantly with the efficiency and output of the panels, the size and complexity of the installation and type of roof all drivers of cost. As a whole commercial solar PV system installations typically cost in the region of £750/kWp to around £1,000/kWp or £150,000 to £200,000 for a 200kWp system (approx. 500 panels). The cost of installation is typically recovered within the first 4-6 years, and that’s before any potential Capital Allowance tax benefit is considered.
How big are commercial solar panels?
Usually 1.8m by 1.1m, containing 60 cells
Commercial solar panels are typically around 1.8m by 1.1m in size, commonly containing 60 cells (the small squares you can see if you look closely at a solar panel). In some situations, such as utility scale installations, it makes sense to use slightly larger 72-cell panels that are around 2.3m by 1.1m in size.
Are commercial solar panels worth it?
Typically saves over 80% per unit rate of electricity
The equivalent cost of producing electricity with a commercial solar PV system is around 4-6 pence per kWh. In 2023 UK businesses will typically be paying 25-30 pence per kWh for their daytime electricity, and in some cases significantly more than this. In generating solar electricity onsite at your business you are typically saving over 80% per unit rate of electricity (kWh) compared to buying from the grid.
Mypower’s customers typically see around 30% of their total annual energy needs being met by their onsite solar PV systems. The solar PV systems typically pay for themselves in 4-6 years, before any tax or investment incentives are considered. Therefore, in our opinion commercial solar PV installations provide a worthwhile return on investment.
Commercial Case Studies
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