The Future Of The Solar Power Industry: Our Predictions
Solar power has become increasingly popular over the years and many businesses are acknowledging the various benefits that solar panels can bring. Not only does solar have the potential to reduce your overhead costs through cheaper electricity prices, but it can also substantially reduce your carbon emissions and make your brand more attractive to consumers. Solar PV systems have evolved rapidly and commercial solar panels are more accessible and affordable than ever. As with any technology, solar PV panels will continue to evolve and improve over the years. With that in mind, here are our predictions for the future of the solar power industry:
The first thing worth noting is that the UK has agreed to environmental targets to reduce carbon emissions by 34% by 2020/21. These targets were brought in to help fight climate change and environmental pollution. In response to this, many business have committed to making their business processes greener, meaning that there has been an increase in commercial solar panel installations. The UK has also agreed to take action to lower emissions by 80% by 2050.
To meet this target, we need UK businesses to set environmental objectives and take steps to make their processes more sustainable. One way to achieve this is by installing a solar panel system that allows companies to produce clean, renewable energy on-site. Utilising solar power is an excellent way for businesses to lower harmful emissions and reduce their carbon footprint. This is particularly true for companies with high energy consumption i.e. manufacturers, food producers and those with cold storage facilities.
Cheaper solar panels
The UK government axed the solar Feed-in-Tariff scheme (FiT) back in 2019. This means that the solar sector now works without subsidies. It was feared that a lack of financial support from the government would result in fewer solar panel installations. However, the cost of commercial solar panels has continued to decrease and solar systems are more affordable than ever. In fact, the average cost of solar panels has dropped by an impressive 70% in the past 9 years according to the Eco Experts. This makes solar power an attractive investment for many businesses, especially those that require a lot of electricity to operate.
Increasing electricity prices
While solar panels get cheaper, electricity prices have increased rapidly over the years. Surveys show that electricity prices have tripled in the past 20 years and this trend is expected to continue. Installing commercial solar panels can be a reliable way for businesses to reduce their electricity bills and protect their company against rising electricity prices. This is because solar panels produce electricity at around 4p-5p per unit, compared to electricity from the main grid that costs roughly 15p per unit. Businesses who install solar panels are essentially forward buying their electricity at this lower rate, meaning they won’t be affected by increasing electricity prices. On top of this, solar panels typically have a payback time of around 6-8 years and businesses can benefit from a return on investment of between 14% and 16%. This makes commercial solar a great option for businesses looking to reduce their electricity costs and safeguard their future energy supply.
Higher demand for electricity
Electricity consumption has increased over the years due to factors like an increase in manufacturing companies and the introduction of electric fleet cars. This means that there has been a need to find additional electricity sources that are affordable and sustainable. Solar power is an excellent solution and offers an eco-friendly alternative to electricity generated from fossil fuels. As mentioned, solar power technology has advanced over the years and resulted in more efficient solar panel systems. For example, new solar batteries allow businesses to store excess electricity and use it at a later date. This reduces wasted energy and allow businesses to increase the revenue potential from commercial solar panels. Investing in a commercial solar battery is an excellent way for businesses to boost the overall efficiency of their solar power systems.
Solar power technology has evolved rapidly over the years which means that solar panels are more efficient and affordable than ever. More and more businesses are recognising the various benefits of solar and installing commercial solar panels on their properties. We expect that commercial solar power will continue to grow in popularity, as businesses look for ways to cut their overhead costs, reduce their environmental impact, and meet their corporate responsibility objectives. If you would like to discuss the benefits of commercial solar panels in more details, then contact experts at Mypower by clicking here.