Major cost reduction of solar PV panel modules
Why Is Now the Right Time to Strategically Deploy Solar PV Panel for Your Business?
In addition to significantly lowering energy bills and reducing carbon emissions, now is an ideal time to invest in solar (PV) photovoltaic panel technology. Read on to discover why.
China, a global leader in solar PV production, accounts for about 80% of solar cell manufacturing and 75% of solar module production, according to a white paper published by the CPA in March 2021. Since then, capacity has surged due to substantial investments in cutting-edge manufacturing facilities and government-backed initiatives, driving down the cost of solar modules.
Moreover, advancements in photovoltaic panel technology have made it far more efficient and reliable than in its early days. Today’s solar panels for businesses offer higher wattage, improved efficiency, and enhanced durability, making solar energy one of the most dependable sources of renewable power.
Although the COVID-19 pandemic caused a temporary spike in prices due to supply chain disruptions and rising energy costs, the long-term outlook for solar PV remains highly favorable. Investing now can position your business to reap both immediate and future benefits from this evolving and increasingly affordable technology.
What does this all mean for businesses looking to deploy solar PV to reduce energy costs?
As the “build it and they will come” strategy gains traction and global installations ramp up, the economics of supply exceeding demand will lead to lower costs for businesses and consumers investing in renewable energy. This trend makes it an opportune time for organisations to consider renewable options, as increased competition and production efficiencies drive prices down, enhancing the financial viability of solar PV and other renewable solutions. Ultimately, this shift opens the door for more businesses to adopt sustainable energy practices while reducing their energy expenses.
The UK solar industry has seen remarkable growth recently, largely fueled by rising electricity prices due to the war in Ukraine. Despite some recovery in the fossil fuel supply chain, current grid prices are between 15-30 per kwh and are still about 50% higher than they were a few years ago.
During the energy crisis, solar PV systems often had payback periods under 3 years. Now, with more stable energy prices and lower costs for solar panels, typical payback periods range from 3 to 7 years, even before factoring in benefits like the Annual Investment Allowance. This shift highlights solar energy as a no brainer option for businesses seeking to lower energy costs and improve sustainability.
Wish to learn more about the benefits solar can bring to your business?
Why Should You Invest In Solar PV For Your Business Now?
Investing in solar PV for your business offers significant environmental benefits, especially as the UK grid continues to evolve. A typical 300kWp system can help your business avoid an estimated 60 Tonnes of CO2e emissions annually compared to grid supply.
As we shift towards electrifying transport and heating, the demand for clean energy will rise. Without a major increase in renewable energy generation, the carbon intensity of the grid could actually worsen.
By adopting solar PV, you not only reduce your carbon footprint but also contribute to a more sustainable energy future, ensuring your business is prepared for upcoming challenges in energy supply.
With solar photovoltaic panel supply currently outpacing demand, businesses have a unique opportunity to invest in solar PV at discounted prices. This favorable market condition allows you to secure high-quality panels at a lower cost, maximising your return on investment.
By taking advantage of these discounts now, you can not only enhance your sustainability efforts but also reduce energy costs in the long run. It’s a strategic move that aligns economic benefits with environmental responsibility.
When should you invest in solar PV for business?
Now is an excellent time to invest in solar PV for business, especially given the current market conditions. With panel prices expected to rise in Q4 of 2025, taking advantage of the lower costs today can lead to substantial savings.
You can anticipate a payback period of between 3-5 years, with an impressive ROI of over 20%, excluding any potential capital allowances.
This investment not only helps reduce your operating costs but also significantly lowers your carbon footprint, aligning with sustainability goals. In a rapidly changing market, capitalising on this opportunity could provide your business with long-term financial and environmental benefits.
It’s a smart move for both your budget and the planet!
Why would we say that?
As a commercial solar PV design and installation business, now is a great time to invest in commercial solar PV energy. But don’t just take our word for it, nearly 80% of our business in the past year has come from repeat customers or word of mouth.
This highlights the effectiveness of solar PV technology and the exceptional service we deliver at Excel Energy. Our Managing Director, Nick Neza, notes that with the recent surge in demand for commercial solar PV systems, many new companies have entered the market, some reputable, others not. Unfortunately, this influx has resulted in a rise in poor-quality workmanship, disappointing many customers and damaging the industry’s reputation.
Nick recalls a similar trend in the early 2010s, when a lack of regulation and quality control led to a wave of unreliable companies and schemes, leaving many end users dissatisfied. However, the difference this time is that industry monitoring bodies have implemented stricter processes, providing greater customer protection and assurance. This regulatory improvement ensures higher standards, helping to maintain the integrity of the solar industry.
To avoid such issues, partnering with an experienced commercial solar PV installer with a strong track record and positive customer references is essential. Over the years, we have helped hundreds of businesses reduce their carbon footprints and lower operating costs, with many returning as the business grows.
If you want to learn how solar PV for business can benefit your organisation and discover why so many clients choose Excel Energy, we’re here to help!
