Probably the most obvious is that using solar panels to generate electricity to power your business saves money and allows your business to be independent from energy companies.
Still, there are other benefits, including energy independence from large electricity suppliers, reduced carbon emissions and more.
If you would like to discuss installing solar, contact us today on 0191 481 3316 to find out more and to request your free, no-obligation quote.
For more information on solar energy advantages and how they could benefit your business, keep reading.
Save money on electricity bills with solar energy
Many companies choose an industrial solar installation to reduce their energy bills. Like residential solar energy systems, commercial arrays offer cost savings and reduce your dependence on fossil fuels.
How much money you save on your energy bills can depend on several factors, including your current energy consumption, your current energy tariff, the payment method you choose, and more.
Recently, we installed a 1.3 MWp system for a manufacturer in Peterlee, which would generate over 1 million kWh for the company per year. If they were paying 23p for each kWh, then they would save over £250,000 on their energy bills each and every year. To find out more about how AR Power has used solar panels to benefit businesses and organisations throughout the UK, read our case studies.
To ensure that we are proposing the best possible system size for you, we can carry out simulations on 500 possible system sizes to review the potential self-consumption and export levels and to review the potential payback and return on investment (ROI) for you.
These simulations utilise your half-hourly data in addition to simulated Solar Generation figures. This generation profile is generated by industry-leading, investment-grade 3D simulations (PV*Sol Premium) and electrical design, in addition to a Typical Meteorological Year for your site, using 20 years of local weather data, to predict the system output bespoke to your installation
Any electricity generated by your solar power system that you don’t use could be sold back to the grid. This will also contribute to your payback period and ROI with an additional revenue stream.
Use asset finance to spread the cost of your commercial solar system
Historically, funding a solar PV system for your business meant using your own capital or asset expenditure. Nowadays, various funding options are available, with Asset Finance emerging as a popular choice. With Asset Finance, you can spread the cost over several years by making monthly payments to a finance company, ultimately owning the system once the term concludes
We can be flexible when it comes to funding, providing a fixed monthly payment that can range from 3 to 10 years. In most cases, we can create a model whereby the monthly payment is less than what you stand to save on your energy bills, making the project cash positive from year 1, almost a no-brainer.
This means that you are still saving money on your energy bills and paying off the solar PV system with the savings, with money left over to spend elsewhere in your business and keeping cash at the bank for other projects.
If you would like to explore installing solar panels for your business using asset finance, AR Power can help. We also offer a range of funding options and financial incentives for commercial solar systems, including CapEx, power purchase agreements and grants.
Reduce carbon emissions with a renewable energy source
If you are looking to reduce your carbon output and get closer to NetZero, then adding solar to your business or organisation can dramatically reduce your carbon footprint. The amount of carbon you could save depends on the size of the system we install and how much you reduce the amount of energy you take from the grid.
Generally, for every 50 kWp of solar you install, you would save 10,000 kg of carbon each year. This is the equivalent of planting around 600 trees annually.
Many companies, especially local authorities and education providers, have NetZero targets, and this is the main driving factor for them, with the cost savings being secondary. Thanks to a range of solar technology, including solar carports and ground mounted solar panels, it’s possible to have solar panels installed on almost every type of commercial building.
Become energy independent and avoid future catastrophes
The energy crisis in 2022/23 had a major impact on many businesses, increasing their energy costs beyond what they had forecasted in their annual budget. Some companies have been paying 60p and above per kWh, whereas the average cost per kWh is now 23p.
By installing solar, you can reduce the amount of energy you need to import from the grid and futureproof your site, this will mitigate the risks of another energy crisis. If you reduce your grid electricity use by 50% and there is a future energy crisis then it would only impact you by 50%.
An example could be, if you currently pay 23p per kWh and this now goes up to 69p due to an energy crisis, then you will be paying 3 times as much. However, if you install solar panels, it may only double.
Win more tenders by powering your business with clean energy
As consumers focus on green energy production, companies are placing a growing emphasis on sustainability in their supplier selection process to appeal to environmentally-minded customers. This involves evaluating suppliers’ environmental efforts to boost eco-friendliness.
Nissan, for example, has added sustainability to the list of scoring criteria, so when looking at suppliers, they are now looking at what they are doing to help make their company and products more sustainable.
Installing solar for your business may give you a better chance of scoring higher in tenders and help you win more business.
Get ahead of the competition by installing solar panels first
Installing a commercial solar PV system can help you get ahead of the competition in many ways. We have already touched on winning more tenders, and if you have solar installed and your competitors don’t, then you may stand a better chance of winning the contract. However, there is also a monetary benefit that will help you get ahead of your competition.
If you spend £100,000 on your energy bills each year and you install solar, and reduce your demand from the grid by 50%, then you will have an additional £50,000 a year to invest elsewhere within your business.
That could enable you to buy more machinery to increase efficiencies, invest in new product development, or make other improvements to your facility. The savings from your lower electricity bills could give you the competitive edge to get ahead and grow your business, providing a better service or product than your competitors.
Enjoy short payback periods
Payback periods are the length of time it takes your solar panel system to pay for itself and produce electricity to cover the price of the panels in cost savings by reducing electricity bills for your business.
Historically, payback periods for a solar PV system were over 7 years, and a lot of companies decided against installing. However, the cost of solar PV equipment has come right down in recent years and is now at an all-time low.
This has brought the payback period down to an average of 4-5 years for some customers who are funding their projects using CapEx.
If you have explored installing solar over 2 years ago and would like to find out what your payback period would be today, please get in touch with us.
The technology has also improved, so you will get a better system with enhanced performance and better and longer warranties than you were previously offered.
Realise your ESG strategy by reducing your use of fossil fuels
Many companies have added renewable energy to their businesses as part of their ESG policy. However, some companies may have other priorities and push back projects.
By sticking to your plan and embracing solar energy, you can achieve your ESG goals and enhance your credibility with your customers. This is particularly crucial if your contracts factored in your ESG strategy during the decision-making phase.
Embracing solar power not only aligns with your environmental objectives but also solidifies your commitment to sustainable practices, reinforcing trust with your stakeholders.
Boost your company image, marketing, and PR
Installing solar panels and doing something for the environment is great for your company’s image, shows that you are forward-thinking, and, like any responsible business, consider the impact their operation is having on the environment.
We are now seeing more and more companies promote that their products are carbon neutral, that they are made using renewable energy, or have been made from recycled materials. A few years ago, Apple promoted its iWatch range as its first carbon-neutral products.
Installing solar panels for any company is a significant investment and the perfect opportunity to have a PR article written about your sustainability journey and what it means for your business as well as your customers.
Solar panels are fast and easy to install with AR Power
Installing solar panels to your business or organisation is relatively straightforward and easy to achieve. Once you are happy with your quote and we have a signed agreement to install, we will process all relevant applications for you and let you know when we will come to install the system.
If your proposed system size is over 50kWp, we will need to wait up to 13 weeks to receive approval from the Distribution Network Operator (DNO). Once we have received approval, we can begin to plan the installation, working with your team to ensure the work is carried out with minimal disruption to your day-to-day operation.
We will appoint a Project Manager who will be your main point of contact, keeping you informed every step of the installation process, and who can work with you on timings for key activities such as scaffolding being erected, delivery of materials, and connecting to the main supply.
Once the system is installed, we will perform a full handover with the site lead and provide access to any monitoring platforms so you can monitor how much the system is generating.
To ensure you get the best from your solar panel system, we will always be here to help you through every step of the journey and after the installation is complete. Once your solar panels have been installed, we can offer ongoing solar panel maintenance services to ensure you always make the most of your solar technology and harness the sun’s energy as efficiently as possible. Our team also help you add solar batteries to your system so that you can store excess electricity generated by your new commercial solar panels.
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