Businesses can make big return on investment by installing privately-owned solar panels. While it may cost more initially to get them installed, your business’ annual savings on electricity could be between £4,500 and £30,000.
Plus, with pollution set to become the biggest environmental cause of premature mortality globally by 2050, you can’t really afford not to go green.
Here are the main benefits of installing commercial solar panels; it may be the best investment your business ever makes.
The main benefits of installing solar power systems are:
- Free use of energy
- No installation costs through a PPA scheme
- Beneficial for the environment
- Earn a passive income with Feed-In Tariff (between £1,350 and £5,500)
- Potential ROI of over 15% (saving between £4,500 and £30,000 annually)
- Gain respect from customers and community
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Free use of energy
Installing commercial solar panels could see your business make an annual saving of £1,500 on electricity bills in your first year. Solar panels greatly benefit business owners because rather than purchasing large amounts on electricity from the National Grid each year, you can produce your own energy at no cost. Once you have installed solar panels, you can enjoy free energy usage for the lifespan of the technology – usually around thirty years.
There is a misconception that solar panels can only generate power in the sunniest of climates, but this is not the case. In fact, British business owners up and down the country – from Dorset and Wiltshire to Surrey and South End – make for great candidates for users of PV (photovoltaic) systems.
A 4kWp system can generate around 3,800 kilowatt hours of electricity every year in the southern parts of England; even on grey wintry days the panels can produce enough energy to power a building.
At night, you must switch back to the grid, but with your employees out of the office at night-time you won’t be using any energy anyway. Therefore, your energy spend per day is zero.
Larger systems are more cost-effective than smaller systems and can save an incredible 1.7 tonnes of carbon dioxide every year.
No installation costs through a Commercial Solar Power Purchase Agreement (PPA)
Electricity savings when having outright ownership of panels are great, but there is another option for businesses – investing in a Commercial Solar Power Purchase Agreement (PPA).
PPA is a contract whereby investors in green technologies – like IDDEA in Wiltshire, UK – provide businesses with free solar panels (with no purchase, installation or maintenance costs) and the business owner then purchases the energy produced by the panels back off the investor. With this scheme, 9 out of 10 sites involved pay less per each unit of energy than they did when purchasing from the grid – and if they don’t accumulate great savings in the first year, they will later down the line.
What’s more, the cost of harnessing energy from solar panels through a PPA scheme only increases at the rate of the Government-stated retail prices index (RPI) level, so annual savings should increase year-on-year. Therefore, your business’ combined electricity savings over a 20-year period with a PPA could be as much as £146,542 – all without paying any purchase or installation costs.
A commercial PPA scheme generally lasts for 25 years, by which the original investor and classified owner of the panels can remove them and terminate the contract, or the panels can become the property of the building owner. If the building is sold during the contract, the new owner will need to agree to sign the PPA, and in doing so, can benefit from great annual energy savings.
The PPA agreement is recommended for all types of commercial buildings, though would highly benefit hospitals, schools, industrial buildings and factories, or any service which cannot purchase the system outright.
The benefits of a business owner entering into a Commercial Solar Panel Purchase Agreement are too great to not be considered; for no purchase or installation costs, your business can have the chance to go green and save thousands of pounds year on year. It is even feasible that once the leasehold period expires, the building owner will become the sole owner of the panels.
Beneficial for the environment
Nowadays, it’s more important than ever to reflect on your carbon footprint and readdress your impact on the environment. It should be noted that by 2050 the United Kingdom needs to have reduced their energy consumption by 85 percent, or it will violate international environmental laws.
With the planet’s temperatures continually rising, switching to sustainable energy sources has a been proven to have a positive effect on the ecosystem. Plus, using renewable energy means you dodge the inevitable rise of energy costs.
Business owners, especially, should be conscientious about future-proofing their energy consumption, and installing solar panels is one of the greatest steps towards sustainability best practice that they can take.