Should Solar Panels Be Mandatory on Commercial, Industrial and Agricultural Properties?
Are Solar Panels Required on Commercial, Industrial and Agricultural Properties?
They aren’t mandatory and there are no laws which say you must have them. However, they are encouraged. In November 2023, the Government announced new rules to make the process of installing solar panels easier. There are also grants and schemes in place to encourage homeowners to make the switch to solar energy and a few for businesses too. Although it’s not a requirement, many businesses choose to install them because of their long list of benefits.
Why Are Solar Panels Beneficial for Commercial, Industrial and Agricultural Properties?
They can reduce bills: Certain facilities require a lot of energy which can be costly, like refrigeration warehouses and dairy units on farms. Installing agricultural solar panels in this case can make these energy bills cheaper. This goes for the industrial and commercial sectors too – there are factors in both which use a lot of energy and can be swapped out for solar. The costs are often more predictable as well.
Maintaining solar panels themselves is a cheap process as they don’t need much upkeep. They usually need cleaning annually which is why costs in this area are so low.
They produce a good ROI (return of investment): When installing solar panels, businesses look out for those that will bring in good ROI. For example, Mypower installed a 108KW solar PV system in Gloucestershire for Daylesford Organic Farm. This will create a ROI of 17.5% - anything higher than 10% is usually considered very strong. In 2024 the typical UK for buying electricity from the grid is 20p per unit whereas this system that was installed will create subsidy-free electricity at around 4.85p per unit.
They’re a sustainable solution: Many businesses are exploring how they can be more green and solar panels are a good solution to reducing CO2. Doing so is also a good way to draw in clients and customers. People love environmentally friendly solutions, particularly the younger generation. If your ideologies align with theirs, then people are likely to stick around. Industrial solar panels are particularly good for those involved in manufacturing processes because it shows social responsibility has been considered.
They’re reliable: Unpredictable power outages can be a huge problem if you rely heavily on the grid. If this is backed up by a battery, excess electricity can be stored, giving you a continuity solution.
Should Solar Panels Be Required on Commercial, Industrial and Agricultural Properties?
Businesses that use a large amount of energy are likely to benefit from installing solar panels and can improve the environment as a result. The Government have grants available and schemes to encourage people to install them.
For most commercial, industrial or agricultural solar PV systems the amount of electricity exported is of interest to the energy companies that will onward sell your green energy to their wider customer base. However, in some cases, particularly if you have a small amount of export, you may find it hard to identify an energy company willing to purchases your excess energy, in this case the government’s Smart Export Guarantee will provide you with a baseline price. To get paid for your excess electricity you will need a suitable meter installed and contract setup – In some cases there are costs associated with this, so it is worth checking that it makes commercial sense to do this.
If you do not wish to invest you own business’s capital in a solar PV system you can choose a Power Purchase Agreement (PPA) option. If you do this, your solar panels are installed, owned and operated by a 3rd party who will then sell you the generated electricity at a rate which is typically cheaper than the current grid energy prices.
With the government encouraging solar power, this raises questions about whether it should be mandatory. It’s a no-brainer that they’re a great solution and are becoming more popular every day. There’s no evidence that solar panels will become a requirement for the commercial, industrial and agricultural industries, but it’s something these sectors should invest in for a cleaner future.
Solar Panel Solutions with Mypower
Mypower supply and install PV systems which are award winning across the industrial, agricultural and commercial industries. We are the UK’s leading commercial solar power installation company and are dedicated to providing the best services. As we’ve been established since 2010, we know all about solar energy - with us you’ll get peace of mind that we know everything about this area of work. We’ve completed a large number of projects with high-quality panels so you can put your trust in us. We’ll help you lower your energy costs which will also help to reduce your carbon footprint.
Rather than taking a sales approach like other solar panel companies, we’re open and honest by using consultancy to plan projects. We know what works and what doesn’t. Enquire with us today.