Commercial solar panels - a sure route to long-term affordable clean energy
The introduction of commercial solar panels is a smart business decision that will deliver both immediate and long-term benefits to your company or organisation.
Having the ability to generate your own green solar power reduces a reliance on commercial energy suppliers and provides your business with greater long-term energy security.
What’s more, by combining solar power solutions with smart energy storage, you can open up new revenue streams by selling your excess electricity to an energy supplier, or by providing ‘flexibility services’ on behalf of the local electricity network.
Finally and perhaps most importantly, by introducing on-site renewable energy solutions your business will be demonstrating to customers and stakeholders that you are taking vital action on the most pressing challenge of our times – the existential threat of climate change.
Solar panels provide long-term protection against energy market volatility
As the world economy recovers from the impact of Coronavirus lockdowns there has been a surge in energy demand which has forced up energy prices to record levels.
Nowhere has this been felt more acutely than by business owners who have already experienced a very challenging two years of trading.
A squeeze on gas markets has caused the cost of energy in the UK to increase by nearly 70% between April 2021 and April 2022.
Forecasts by energy market analysts predict a further increase of 20% in October 2022, and the International Energy Agency believes that such price volatility will continue for at least three years.
A commercial solar panel installation gives you the ability to start generating your own renewable energy, freeing you from exposure to unpredictable price increases from energy suppliers.
Introducing green energy solutions will reduce your exposure to volatile global energy markets and provide greater assurance for budget forecasts and business strategies.
With the UK and European energy market so unreliable, it makes more business sense than ever before to consider installing renewable energy solutions.
Take advantage of the plummeting cost of solar power
A new commercial solar panel installation is much more affordable for business owners than it may have been even a few years ago.
In the ten years between 2011 and 2020 the cost of solar panels fell by 90% as economies of scale and production capacity increased internationally.
When taken into consideration with the escalating price surge of retail energy markets, there is a strong business case to be made for investing in energy equipment and solutions for your company.
A new solar panel system will provide affordable source of green electricity to your business for a long time, typically 20-25 years. There is plenty of time therefore to recoup the initial cost of the solar panels through savings in your energy bill.
Once the upfront cost of your commercial solar panels has been recovered, you can enjoy 100% free solar electricity for the remaining operational lifetime of your system.
Price per Wp of Solar PV (fully installed): 2007 – 2022
Source (CompareMySolar UK)
Tax advantages of commercial solar energy
In Summer 2021, the UK Treasury announced a tax ‘Super Deduction’ designed to incentivise businesses to invest in upgrades to their infrastructure and machinery.
Amongst the measures eligible for the Super Deduction are solar panels and electric vehicle charging points.
The Super Deduction means that From 1 April 2021 until 31 March 2023 companies can claim up to 130% of their Capital Allowances back from HMRC.
The policy is intended to stimulate investment in business assets, and provides a strong incentive for businesses who are considering introducing solar power to take action whilst such a generous tax policy is on offer.
Battery storage and Time of Use Tariffs
In most cases the best way to leverage the greatest value from your solar energy system is to combine it with battery storage technology.
Not only will this enable you to store excess green energy generated in the day for use at night, but you will also be able to take advantage of Time of Use tariffs.
A Time of Use tariff is an electricity tariff with a fluctuating price throughout the day. Owning a commercial storage battery lets you purchase electricity when it is cheap and store it for use at times when prices are higher. This means you can avoid a high cost of electricity at peak times, achieving big savings on your energy bill.
Alternatively, if you have no use for your stored electricity you may prefer to sell it on to an energy supplier or to neighbours who need access to reserves of electricity at peak times, e.g. 6-8pm. This will provide your business with a new revenue stream, and also demonstrate your contribution to supporting the wider decarbonisation of the UK’s energy supply.
Demonstrating sustainability to stakeholders
As climate change continues to attract greater attention from the public, it is more important than ever for your business to demonstrate that you are taking meaningful action to reduce your environmental impact.
These days, customers and investors expect the companies they do business with to have an ambitious sustainability and carbon reduction plan, and implementing clean energy solutions is a core part of most building energy management strategies.
Many of the world’s most successful companies, including Google, Apple, Tesla and Microsoft, have installed sustainable energy solutions at their facilities, achieving a significant reduction in their operating costs whilst showing leadership on the climate crisis.
BHESCo Commercial Solar PV Case Studies
Site: Alistair Fleming Design Ltd, Lewes
PV system size: 28.6kWp
Year: 2018
Estimated lifetime financial saving: £127,364
Estimated lifetime CO2 saving: 299 tonnes
Site: Brunswick Primary School, Hove
PV system size: 99kWp
Year: 2020
Estimated lifetime financial saving: £109,275
Estimated lifetime CO2 saving: 612 tonnes
Partnering with BHESCo to get the best from your commercial solar installation
To get the best value for money from your solar energy system, it is first vital to have a detailed understanding of the energy demand of your property, so that you can design a solar array that is appropriately sized and will match your expectations.
Designing a suitably sized solar power array is a complex undertaking, so we invite you to partner with BHESCo’s experienced project management team who want to use their technical knowledge and expertise to deliver the best outcomes for your solar power project.
We will combine a detailed energy survey of your property with an historical analysis of your energy bill data to provide the insights we need to accurately specify the best system size for your circumstances, and to provide the maximum economic value to your business.
If required, BHESCo can even finance the upfront costs of your renewable energy project using our innovative ‘Pay As You Save‘ initiative.
Under this model, project installation and technology costs are covered by BHESCo’s shareholder members who are passionate about investing in clean energy generation and savings systems to transform our communities.
This means there is no upfront cost to our customers, who in most cases, will start making savings immediately. A portion of the savings are then used to repay the cost of the project, plus 3% interest which we pay to our shareholder members.
Next steps if you are considering smart energy solutions for your business
It is self-evident that the volatile nature of a fossil fuel based energy market provides no long-term assurance for businesses looking to secure affordable energy costs.
As supplies of oil and gas dwindle, their availability and affordability will become even more unreliable, especially when global governments introduce more carbon taxes and emissions caps.
The most sustainable long-term energy management strategy, both financially and environmentally, is for businesses to reduce their energy demand through efficiency improvements and to meet their remaining demand with as much on-site renewable energy as possible.
If your business or organisation is based in Brighton and Hove or the greater Sussex area, then take advantage of the sunny South Coast weather by capturing some of that free solar power and protecting your business against future energy price shocks.
Speak with the BHESCo Project Team today to understand which business energy solutions will deliver the greatest impact for you.
1 Comment
Aqua Solar Cleaners · 16/03/2023 at 05:13
Thanks for sharing this interesting blog with us. I am also a solar paneI cleaner and running a solar panel cleaning company in California called “Aqua Solar Cleaners”. Here we offer residential & commercial solar panel cleaning services with Semi-Annual, Quarterly, monthly options. You can also check out our website for more : https://www.aquasolarcleaners.com/ We have also mentioned some interesting strategies. Thanks!