There is an excellent commercial case for harnessing the power of the sun in your business – here are 3 reasons to install solar panels.
Whatever your company size, rising energy costs mean that that making best use of clear space at your business premises to generate energy is a wise move.
Solar PV panels are a trusted, reliable technology, whether you decide to use the roof space on your factory, office, agricultural building or warehouse.
There is an estimated 250,000 hectares of south-facing commercial roof space suitable for solar PV and the initial costs are now well within the budgets of a large number of small to medium-sized businesses. The benefits of going solar are no longer just for the large corporations.
It is understandable that many SMEs have shied away from investing in solar PV panels, given what the technology cost in the past but this should no longer be an obstacle to reaping the rewards of solar power.
The price of solar panels has dropped 62% over the past decade, aided by support and subsidies.
This investment decision can be moved from a long-term dream in the distant future to the present as part of an agile energy strategy.
Basically, while solar PV panels are good for the environment, they also simply help businesses save money by generating green electricity. This is used onsite and so reduces energy demand on the National Grid in daylight hours and saves thousands of pounds on energy bills year after year.
A recent study indicated that if around 61% of south-facing commercial roofs were fitted with solar PV, this could supply all the energy needs of UK businesses. At the same time, it would save at least £30,000 a year on the energy bills of medium-sized and larger enterprises.
Another financial benefit is that the annual investment allowance can offset the capital cost against income tax in year 1 while there are a range of easy financing options that make solar PV an attractive proposition.
Taking into account current installation costs, a solar PV solution will provide electricity at around 5 pence per kWh – this includes operations and maintenance. That is around 60-70% cheaper than buying from the National Grid.
It will deliver a 25-year, fixed-cost energy provision in contrast to continuing rises in the cost of electricity supplied by the National Grid which is the second reason to invest in solar PV.
The growing strain on the National Grid is creating more headaches for businesses, which face costs of up to £1 million and more to upgrade their supply systems while facing the threat of more frequent power outages.
With rapidly changing conditions in production, it is a fact that that the grid now struggles to generate electricity supply to meet rising demand. In this light, the costs of taking a business off-grid can be weighed against having a robust energy source if the worst case happened and the grid failed to supply all needs.
The Government has given some hints that the introduction of mandatory energy audits for large businesses through the Energy Savings Opportunity Scheme is part of the process where eventually energy usage from the grid could also be regulated.
There is also no long-term future for climate-threatening fossil fuels and so there will need to be large-scale investment in renewable generation at grid level to meet huge new demands such as that created by the growth in numbers of electric vehicles.
UK Energy prices, already among the highest in Europe, are predicted to double over the next decade but with solar PV panels a company will “forward buy” its electricity at a set price of around 5 pence per unit. And that will shield a business from energy price rises, which simplifies financial forecasting.
An added benefit is the reduction in carbon emissions, as the power can be generated from renewable sources, which is the third reason to move to solar.
Great for the planet
By investing in solar power production, a company will drastically reduce their carbon footprint. In fact, with the right conditions, a business could offset nearly all of its carbon emissions. Over its working life, a solar PV installation would produce 30 times less CO2 than coal power, on average.
The climate emergency has moved to centre stage in the UK and around the globe and companies are moving away from feelgood green policies that actually achieve little by way of concrete improvements.
In place of these sentimental strategies there are a growing number of companies of all sizes that are pledging to move to zero carbon status well within the Government’s target date of 2050.
Solar PV is just one important element in climate-focused strategies that are proving popular with clients and customers, which can help to boost competitive advantage while strengthening supply chain and consumer relationships.
What’s holding you back from solar?
As you can see, there are multiple valid reasons why your business should install solar panels. They’ll save you money, protect you from future energy price increases and will help save our planet. If you would like to discuss your options, feel free to contact us using the form below.
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