Commercial energy costs are rising rapidly, and there’s currently no regulation like the consumer energy price cap to protect them. As such, companies already paying significant energy costs could see them rise even higher in the future.
Many businesses are exploring ways to improve energy efficiency and make the most of renewable energy sources to reduce their energy costs. Installing solar panels could be an ideal solution for many organisations, including major corporations, medium-sized businesses and even small companies.
While solar panels have many benefits for businesses, the UK is still behind many other European countries when it comes to solar installations. One of the main stumbling blocks many leaders have when considering installing commercial solar panels is the cost.
Most small-scale solar PV systems start at around £10,000, and a large system can cost hundreds of thousands of pounds.
That’s a lot of money for even major corporations, never mind the thousands of small to medium businesses operating across the UK.
While these prices are offset by cost savings, business leaders might want to consider the benefits and challenges that face them before they fit a commercial solar panel system. To help, AR Power has created this comprehensive guide to commercial solar panel costs.
Why Install Commercial Solar Panels?
Commercial solar panel systems offer many benefits for businesses, including:
- Cost Savings: The main benefit most businesses focus on is the reduction in energy costs when they switch to solar power, which can be significant, especially for organisations that use a lot of energy during busy periods.
- Meet Your ESG Targets: Part of your Environmental Social and Governance pledge can be met with the installation of solar panels for your business.
- Improved Sustainability: With solar panels, your organisation can be more environmentally friendly and reduce its carbon footprint drastically.
- Marketing Opportunities: Having a solar panel system on your property’s roof space can show your customers that you’re committed to reducing your company’s carbon footprint and can be a great marketing opportunity.
- Engage Your Supply Chain: Many consumers and businesses are reviewing their supply chains and searching for more eco-friendly providers, so you could improve your customer retention and acquisition by installing solar panels.
- Additional Revenue: If your solar panels generate more energy than your business needs during off-peak times, such as over the weekend, then your organisation could earn extra money selling excess electricity back to the grid.
- Make The Most Of Unused Space: The roof of your commercial property, your business groundsor the area above your car park is often just empty space, so you won’t need to worry about losing valuable real estate to your solar panels.
- Energy Independence: Stop relying on energy companies and generate your own solar electricity. Costs will continue to rise in the future from energy companies, but with commercial solar panels, your business can take control of its own energy supply.
How Much Do Commercial Solar Panels Cost?
The cost of your commercial solar system will depend on a variety of factors. The energy needs of your business are a major factor, as is your location, as labour and installation costs will be higher in certain parts of the country than in others.
Another significant influence is the type of commercial solar installation you choose and any additional solutions you need. The main options are:
- Roof Mounted Systems: Traditional commercial solar panel systems are mounted on the roof, which is usually the best option for businesses with large roofs and limited ground space.
- Ground Mounted Solar Panels: If your business has spare land or wants to establish a solar farm to sell excess electricity and earn additional revenue, ground mounted solar panels could be the ideal choice.
- Solar Carports: Solar carports can power your business and offer additional protection from the elements for vehicles, all while making the most of the unused land above outdoor car parks.
The type of commercial solar panel system you choose will have a significant effect on the cost, alongside its size. Different mounting systems will require additional expertise and might cost more, and the type of inverter and other hardware needed will change depending on the type and size of your commercial solar system.
How Many Solar Panels Does Your Business Need?
The number of solar panels you need for your commercial solar system depends on your electricity consumption. While you can store excess energy in solar batteries, it pays to have a system that’s large enough to meet your company’s average daily energy consumption.
Most solar systems are measured by how much energy they can produce, so the larger the system, the more power it will generate. That doesn’t necessarily mean that your solar PV system will be larger, as cutting-edge solar technologies mean there are solutions that can produce more energy without taking up more space.
By working with experienced commercial solar panel installers like AR Power, your business can make the most of innovative solar panels that have high solar generation capacities.
Will You Need Planning Permission For Commercial Solar Panels?
Getting planning permission for commercial solar panel installations would increase the cost and the amount of time that it would take to start the project.
The longer the installation takes, the higher the cost will be, as prices can rise, and your business won’t be able to get the energy savings as quickly.
Thankfully, most companies won’t need planning permission for solar panels, as these are considered a permitted development.
Even high-generating solar panel systems don’t need planning permission, but there are some exceptions. If the solar panels are going to be attached to a listed building, are placed within the boundaries of a World Heritage Site or are a ground-mounted system of more than 9m2, then you may need permission from your local council.
How Can You Finance Commercial Solar Panels?
Many companies don’t have the funds available to finance the full cost of commercial solar systems. Luckily, there are many financing options available to help spread the cost, including:
- CapEx: Capital Expenditure (CapEx) refers to paying for the solar panels outright. This can be a useful solution to limit interest payments, but it isn’t always feasible for every company.
- Asset Financing: If you need to spread the cost of your solar panel system, then it is possible to asset finance commercial solar panels. This option allows your business to take out a loan for your solar panels and pay it back either in monthly instalments or seasonally, depending on the amount of solar power generated. At AR Power, we can model your re-payments so they are less than the savings you’re making on energy bills, so there are no additional costs for your asset financing.
- Power Purchase Agreements: A Power Purchase Agreement (PPA) gives your business the chance to make the most of solar energy without purchasing your solar system outright. In this case, an investor or energy company pays for the cost of your solar panels and then sells you the energy until the end of the lease, at which point your business owns the asset. Most Power Purchase Agreements last between 10 and 30 years- the longer your lease, the cheaper your energy bills will be until you own the panels.
- Grants: There are many grants available that could help your business to reduce the cost of its solar panels. To apply for most charity or government grants, you will need to get quotes from commercial solar panel companies and then submit them, alongside a proposal, to the organisation dispensing the grant.
For a free, no-obligation quote, get in touch with AR Power, and our team will talk you through your options.
What Solar Panel Maintenance Costs Will You Face?
As well as the upfront costs of purchasing your solar panels, you will also have to pay ongoing solar panel maintenance fees.
While you might think some basic jobs, such as cleaning debris off your solar panels, can be done in-house, maintaining your system to ensure maximum efficiency is best left to the professionals. That’s because your team might not follow the correct safety procedures and cause damage to your solar panels by using the wrong techniques or equipment.
Providers like AR Power offer regular inspections and emergency support to ensure your solar system is always as efficient as possible.
It might be an additional cost, but maintenance for your solar panels can pay off in the long run, as they can ensure that your solar PV system generates solar energy at full capacity and improve the lifespan of your technology. Solar panels come with a 30-year guarantee- if a claim needs to be made and your array was not maintained correctly, then the guarantee could be voided, so maintenance is well worth the investment.
What Savings Will You Make On Your Business’s Energy Bills?
How much money your business saves on its monthly energy bills will depend on the size of your solar array.
Depending on your business’s energy usage, the payback period for your solar system can be anywhere between 3 and 10 years, depending on consumption and energy demand. After this time, the system will have paid for itself, as the cost of the energy generated will be higher than the initial costs of installing the panels.
During the payback period, your energy costs will usually be lower than those of a commercial energy company. Once the panels are paid off, you will be getting your energy for just the cost of maintaining your solar panels.
Get All The Benefits Of Commercial Solar Panels For Your Business
Installing solar panels can be the ideal way to save on commercial electricity bills, gain energy independence and highlight your business’s commitment to sustainability.
If you’re ready to start making the most of these benefits, you need to work with an experienced commercial solar panel installation provider like AR Power.
For over a decade, we’ve been providing solar panels for businesses across the North East and the entire UK. Whether it’s public sector organisations such as schools, universities and hospitals or companies including manufacturers, retail outlets and warehouses, we have the experience needed to create the perfect solar array to meet your requirements.
Our team is trusted by some of the biggest companies in the UK, and we pride ourselves on using the best technologies and safety techniques possible. You can view our case studies to see our previous jobs or get in touch on 0191 4813316 to find out more about our commercial solar installation services.
