Does Commercial Solar Energy Offer Any Financial Benefits?
For any business, energy bills have a significant impact on overall earnings, especially for small- and medium-sized enterprises (SMEs) that often operate on tight margins. In today’s climate of rising energy costs, finding ways to reduce your bills is not just smart, it’s essential for maintaining profitability. One of the best ways to achieve this is through commercial solar energy.
Cutting Costs with Solar PV
Investing in solar photovoltaic (PV) energy for your business can result in almost immediate reductions in your energy bills. While the initial cost of installing commercial solar panels may seem high, the mid-to-long-term financial benefits far outweigh this upfront expenditure.
In the UK, the average cost of generating solar PV energy is approximately 5p per kilowatt-hour (kWh). In contrast, businesses currently pay between 20p and 44p per kWh for electricity from their suppliers. This means that by producing your own electricity, your business could see a nearly 50% reduction in electricity costs.
With energy prices expected to double over the next decade, investing in commercial solar panels now could help your business hedge against rising costs and future-proof its operations.
Return on Investment (ROI)
The primary concern for most businesses considering solar energy is the return on investment (ROI). The good news is that commercial solar panels typically pay for themselves within 3 to 7 years, depending on system size and energy usage. Once your initial investment is recouped, all subsequent savings can be reinvested in growing your business, expanding operations, or improving cash flow.
The robustness of photovoltaic technology, coupled with the assurance of a 25-year performance warranty provided by most manufacturers, ensures long-term reliability and consistent energy generation.
Enhancing Energy Efficiency
Installing commercial solar energy systems often encourages businesses to explore other ways to enhance energy efficiency. This could involve upgrading to energy-efficient lighting, such as LED lamps, or adding extra insulation to minimise energy loss. These improvements can further reduce your operational costs, providing even more savings over time.
Feed-In Tariffs (FIT) and Selling Back to the Grid
Businesses that produce excess renewable energy through solar panels can benefit from Feed-In Tariffs (FIT). Although the UK government closed the FIT scheme to new applicants in 2019, existing systems may still be eligible, and businesses can still earn money by selling surplus energy back to the national grid through other schemes like the Smart Export Guarantee (SEG).
Regos (Renewable Energy Guarantees of Origin) also not only provides an additional income stream to increase profitability and potential business investment in other key areas but also supports the wider transition to renewable energy in the UK.
Future-Proofing Your Business
In summary, commercial solar energy offers significant financial benefits for UK businesses. Not only does it provide immediate cost savings on electricity energy bills, but it also protects businesses from future energy price hikes. Furthermore, by exporting surplus energy, provides an additional income stream, carbon off setting, tax rebates.
Solar PV energy allows businesses to reduce their carbon footprint, improving their brand image as environmentally responsible organisations.
By investing in commercial solar panels today, your business can save money, generate additional revenue, and enhance its sustainability, all while reducing the risks associated with an increasingly volatile energy market.
Interested in learning more? Contact us today for a FREE Desktop or on-Site consultation and discover how commercial solar energy can benefit your business.
