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 solar 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 businesses' electricity use is during the day which is why companies can significantly save money on their electricity bills. High users of electricity can benefit the most. Bako Western, a wholesale distributor installed 996 commercial solar panels and over the next 20 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 businesses with lower energy use can still see huge savings.
NB These are year 1 figures, the FiT increases by RPI and the Savings by electricity inflation – currently around 7%, improving ROI in future years.
One of the the biggest reasons for making the decision to install solar is for financial gain and there are big gains to be had. At current installation costs, a solar PV system delivers electricity at a rate of around 5 pence per kWh. This compares with the current grid supplied rate of 11-15p per unit. So there is an immediate saving on energy costs which can often cover any financing costs of funding the capital costs of installation.
Within the next 10 years energy prices are predicted to double. Solar panels for commercial use effectively allow your business to forward buy your electricity at a set price of around 5 pence per unit. This means your business will never be exposed to energy price rises again which makes financial forecasting a lot easier.
Income from solar
The Feed in Tariff (FiT) is a government subsidy given to those businesses who install solar. Currently this subsidy pays companies around 4 pence per for every unit of electricity generated from solar and it is set at this rate for the next 20 years. You will always receive at least the same rate per unit as the date you installed solar, and it does increase with inflation. What’s more, any unused energy can be exported to the grid and you are paid accordingly, this is know as the export Tariff.
Even with the significant cuts to FiT payments in earlier 2016 companies can still see an excellent return on investment. We compare a high spec commercial solar panel install using European branded REC panels with a 25 year warranty and inverters with a 10 year warranty, by Mypower, from 2012 to 2017, based on 65% of the generated electricity being used on site by the business. This shows that businesses can buy low cost electricity and make excellent financial returns from solar: it’s just as good today as it was during the boom years of 2012-2016…
|Number of panels||200 x REC
|200 x REC
|192 x REC
|Electricity produced: Year 1||48,000 units
|Supply & installation costs||£66,000||£60,000||£43,000|
|Income and savings: Year 1||£10,620||£9,979||£6,702|
|Return on investment: Year 1||16.1%||16.6%||15.6%|
|Payback||6.2 years||6.0 years||6.4 years|
Average business electricity prices
– January 2017
Equivalent forward purchase price of
electricity for 25 years
Ben Harrison MRICS who heads up solar installers Mypower, explains “since 2012, average commercial electricity prices have increased by more than 30%. In May 2017 the UK’s big 6 energy suppliers will have advised their customers they will be applying at least a further 5-10% increase to their bills. In contrast, solar energy prices have fallen over time. Since 2012 the forward purchase price of electricity from solar has reduced by a massive 35%. This means with electricity prices rising and the reduction in installation costs, the achievable ROI in 2017 still surpasses 15%.
Reducing your carbon footprint
Generating your own solar energy will significantly offset your carbon footprint. It may give you a competitive edge over peers who are exposed to rising electricity prices and 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 recent cuts in 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