Is now the time to go solar?
Low-cost solar panels
Aside from the obvious benefit of reductions in carbon emissions and energy bills, why is now a great time for your business to invest in solar? Read on to find out more…
The majority of the World’s solar panel production emanates from China, in fact almost five times as much as the rest of the world combined according to consultancy firm Wood Mackenzie. This capacity has tripled since 2021 with state-of-the-art manufacturing plants helping to continue the significant trend of panel cost reduction* seen since Mypower started installing solar PV systems in 2010. Whilst this rapid growth in production capacity is welcome in many quarters (who wouldn’t want low cost, clean renewable energy) the higher output has seemingly outstripped global demand.
*Albeit there was a price hike blip during the pandemic years, ironically caused by supply chain challenges and an increase in demand due to the significant energy price rises.
What does this mean for businesses looking to reduce their electricity costs?
Whilst the ‘build it and they will come’ strategy finds its feet and installations across the globe ramp up to handle this volume, the economics of supply outstripping demand only mean one thing for businesses and consumers looking to invest in their own renewable energy supply – Lower costs.
The UK solar industry has been booming the last few years with the key driver being the massive rise in grid prices primarily driven by the war in Ukraine. Whilst the global fossil fuel supply chain has done its best to recover from prices hikes to over 60p/unit of electricity, the new ‘norm’ of 20-25p/unit supplied by the grid is still around 50% higher than it was just a few years ago. Whilst we saw some incredible solar PV business cases with payback periods under 2 years during the energy crisis, with the combination of the current energy price norm of 20-25p/unit coupled with the low cost of solar panels we are now regularly seeing payback periods of between 3-5 years before any potential Annual Investment Allowance benefit is considered.
Do you want to know how solar PV can benefit your business? Contact Mypower today!
Why should you invest now?
There is always a good environmental reason for investing in solar PV for your business, even with the huge progress that has been made cleaning the UK grid supply over the last 10 years a typical 250kWp (approx. 560 panels) will help your business avoid around 50 Tonnes of CO2e emissions per annum when compared to supply from the UK grid. What’s more, with the electrification of our transport and heating, unless we see a step change in our grid level clean energy generation, it is possible that we’ll start seeing the carbon content of our grid actually increasing.
On the commercial front, with panel supply currently outstripping demand the resultant discounted panel cost means it is a great time to invest and take advantage of this situation. Whilst we hope these lower costs are here to stay, how factors play out in China and across the global markets in the coming months will be the ultimate decider of this. At present we’re hearing that the manufacturers are likely to start increasing panel pricing in Q4 of 2024, so whilst we can’t predict the future, now would seem an ideal time to invest in solar PV and benefit from the current economic conditions.
What the current situation does mean is that if you look to invest in solar PV for your business today you’ll likely see a 3-5 year payback on your investment or a simple ROI equivalent of over 20%, before considering any potential capital allowance benefit. Overall, a fantastic time to invest in solar PV for your business to reduce your operating costs and your carbon footprint! 🌍☀️
You would say that…
Yes, obviously as a commercial solar PV design and installation business we would say ‘now is a great time to buy’, but don’t just take our word for it, almost 60% of our business over the last 12 months has come from repeat customers.
For us, this is both an endorsement of the results that the simple but fiendishly clever solar PV technology delivers and the experience, quality and professionalism our clients receive from Mypower. The latter point in our view is ever so important, when demand significantly increases, as it has for solar installation services over the last 2 years, so does the number of new entrants into the marketplace – some good, some not so good. This unfortunately means the number of sub-standard installations increases, that only serve to disappoint those unfortunate customers and damage the solar industry as a whole. To avoid any disappointment, we recommend you engage with an experienced installer that has strong references across many customers.
Since our beginnings in 2010 we’ve helped over 450 businesses reduce their carbon footprint and operating costs, with many returning for more as their businesses have expanded. If you’d like to find out how solar PV can specifically benefit your business and want to find out why so many customers return to Mypower.