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Commercial Solar Panels in the UK: Costs, Grants + Pros & Cons
- Commercial solar panels are ideal for commercial buildings with a high energy requirement.
- A 20kW - 50kW system would cost around £16,000 to £60,000 for small to medium-sized businesses.
- SThe average break-even point for commercial solar panels is 4-5 years.
- NZGP, Net Zero: Business Grants Programme, NZIFS and Peak Innovation SME Innovation Grant are some of the region-specific grants available for businesses switching to renewable energy sources.
Commercial solar panels are a great idea for upgrading your business. Not only are they a sustainable energy solution, but they are also incredibly cost-effective and energy-efficient. Whether you are a small, medium or large business, options are available for all energy needs. The ideal type of solar panel for commercial use is monocrystalline, with an efficiency of 15%-22%.
Read on to find out more about commercial solar panels, the costs and savings of solar panels, along with the pros and cons of solar panels for businesses.
In case you are considering switching to solar panels for your business or home, we can assist you with finding the right local solar installer. However, finding a reliable installer who offers the best prices can often be very time-consuming.
Fortunately, we can streamline the process for you and save hours of your valuable time. All you need to do is fill out our 30-second form to receive up to 4 free and non-binding quotes from our network of vetted solar professionals! Click the button below to begin!
- Quotes from local installers
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- Commercial Solar Panels in the UK: Costs, Grants + Pros & Cons
- What are commercial solar panels and why use them?
- How much do commercial solar panels cost?
- How much can you save by installing solar panels for businesses?
- What are the pros and cons of business solar panels?
- What are the requirements for installing solar panels for businesses?
- Are commercial solar panels worth it in the UK?
- FAQ
What are commercial solar panels and why use them?
Commercial solar panels are large-scale solar systems that can power large to small-scale businesses. Solar panels' efficiency is the major reason for their popularity amongst residential and commercial users.
Most small and mid-sized businesses require around 20,000kWh to 50,000kWh of energy per year. An average 20kW commercial solar system can generate anywhere from 25,000kWh to 35,000kWh of energy annually.
So, installing solar panels can cover most of your business's energy requirements easily. Moreover, you can always supplement the energy storage with the help of solar batteries. But why should you use solar panels for your business instead of other sources of energy?
- Cost savings: Commercial solar panels are a scaleable and cost-effective solution for businesses looking to switch to renewable energy while saving money. You can save up to £5,500 annually on energy bills for an average 20kW system.
- Long-term energy solution: Solar panels are a long-term energy solution as they last for about 20-25 years.
- Environmental benefits: Switching to solar energy can greatly reduce your business’s carbon footprint. It also guarantees energy independence in times of increasing electricity bills while adding to your business’s reputation as a sustainable organisation.
You can also make extra money on the side if you sell excess energy generated from the solar panels to the national grid under the SEG scheme.
SEG is a government scheme available to small-scale electricity generators to be paid for any low-carbon electricity generated and exported back to the national grid. SEG licensees (electricity suppliers) decide the terms and tariffs to be paid. The average SEG tariff can range from 8.77p/kWh to 27p/kWh depending on the supplier.
How much do commercial solar panels cost?
Commercial solar panels cost between £16,000 to £70,000 for small to medium-sized businesses in the UK.
The total costs depend upon the solar panel size, panel type, location, and installation costs. To choose the best solar panel for your business, you need to factor in the average energy consumption and other infrastructural requirements.
| Solar system size | Average costs |
|---|---|
| 10kW | £13,000 - £15,000 |
| 20kW | £16,000 - £30,000 |
| 50kW | £33,000 - £60,000 |
| 60kW | £39,000 - £75,000 |
| 80kW | £50,000 - £100,000 |
| 100kW | £60,000 - £120,000 |
For example, a 20kW system would suffice for a small business which requires around 5,000kW to 15,000kW of energy annually. This system would cost around £16,000 - £30,000.
Similarly, a medium-sized business could warrant a system size of 50kW-100kW. The costs for this can be anywhere from £33,000 to £120,000.
Are there government grants for solar panels for businesses in the UK?
There are a number of solar panel grants in the UK available for businesses in the UK. There are different eligibility requirements for grants available in various regions. Most of the grants mentioned in the table focus on small and medium-sized enterprises (SMEs) looking to reduce carbon emissions.
| Name of the scheme | Grant amount and savings | Eligibility | Run Time/ Application deadline | Net Zero Grant Programme (NZGP) | Grants up to £100,000 | SMEs in Coventry City Council, Birmingham City Council, or Solihull Metropolitan Borough Council areas | April 2023 - March 2025 |
|---|---|---|---|
| Net Zero: Business Grants Programme | Grants up to £30,000 | SMEs in North Somerset | Application deadline- June 30th, 2024 |
| Net Zero Innovation Fund Suffolk (NZIFS) | Grants from £2,000 to £20,000 | Businesses in Suffolk developing net zero solutions | Till 2025 |
| Peak Innovation SME Innovation Grant | Grants between £1,000 to £10,000 | SMEs in the High Peak Borough Council area | Current round deadline- July 31st, 2024 |
| SEG Scheme | 8.77p to 27p per kWh of surplus electricity exported to the grid | Businesses with solar panels and an export meter (max capacity 5MW) | January 2020 - indefinite |
Apart from these grants, there is also 0% VAT on solar panels till March 2027. The 0% VAT rate only applies when a VAT-registered installer supplies and fits the hardware.
Whilst all these tips and estimates can point you towards the right solar panels for your business, the only way to find out exactly is to get expert advice from a professional installer. However, finding the right installer who can provide you with the best service for the minimum cost can march on for days if not weeks.
Fortunately, there's an easier way. We can help you with this by quickly connecting you with up to 4 qualified installers in your local area. Complete the 30-second form to get up to 4 free and non-binding quotes. Start now by clicking the button below!
- Quotes from local installers
- Payment by finance available
- Save up to £915 per year
How much can you save by installing solar panels for businesses?
On average, a 20kW commercial solar system will save you around £5,500 annually. It will cover the initial costs in about 4-5 years. A smaller 10kW system, ideal for small businesses, will save you around £2,500 annually and break even in 5-6 years of time.
For bigger systems such as 50kW and 100kW, suitable for mid-sized businesses, the average savings will be around £12,750 and £25,500 respectively. And the break-even point is 3-6 years.
The break-even point depends on the energy efficiency of the system. Typically, solar systems with higher efficiency tend to break even faster.
What are the pros and cons of business solar panels?
While commercial solar panels are a valuable addition to any business, there are also some drawbacks you have to consider. Therefore, we have compiled a detailed list of pros and cons to assist with your decision-making process.
These are the pros of commercial solar panels.
- Reduced energy costs: Solar panels can substantially reduce your electricity bills as you would not have to rely on electricity from a utility company. For a 20kW commercial solar system, you will save you around £5,500 annually. The only costs you will incur are the initial investment and maintenance costs.
- Increase in property value: Properties with solar panels have a higher resale value. The low operating costs and reduced carbon footprint can drive up the property value by 17% on average compared to other similar properties without solar panels.
- Tax incentives and savings: There is 0% VAT applied for solar energy solutions. You can also avail the benefits of the SEG scheme by selling excess electricity to the national grid. Depending on the system size, you can save anywhere from £2,550 to £25,500 annually.
- Environmental benefits: Solar energy is a clean energy source. Investing in solar will guarantee reduced carbon emissions and earn your business the credentials of a sustainable organisation. For example, a solar panel installation covering 1 acre can prevent up to 303,513 pounds (137,500 kg) of CO2 from entering the atmosphere each year.
These are the cons of commercial solar panels.
- High upfront costs: The initial investment required to install commercial solar panels is quite high. An average 20kW system for a small or mid-sized business would cost around £16,000 - £30,000.
- Weather dependency: Solar panels are dependent on weather conditions. Extreme heat can also reduce the efficiency of the panels. However, solar panels can still produce electricity in winter when the sky is overcast.
- Space constraint: Commercial solar panels require dedicated space for installation. You can always opt for efficient materials such as monocrystalline that require less space if you have space constraints. For example, 20kW-100kW systems would require around 120-600 metre² of space.
While these figures are estimates to help you get an idea, the actual installation process will require the expertise of a professional to calculate the space requirements according to the solar system type and space constraints.
Finding an experienced commercial solar panel installer who can accurately calculate how many solar panels you need while also offering the best prices can be a challenging task. There are only so many websites you can browse before getting confused. The best way to tackle this is by getting quotes from several reputable installers.
Here at Household Quotes, we can help you with this process! Just fill out our 30-second form and get up to 4 free, non-binding quotes from our network of vetted solar installers! Click the button below to begin now.
- Quotes from local installers
- Payment by finance available
- Save up to £915 per year
What are the requirements for installing solar panels for businesses?
You need to consider several requirements before installing commercial solar panels in the UK.
- Property Ownership: The business must own the building or property where the solar panels will be installed. Renters or those who do not own the building are typically not eligible for commercial solar installations.
- Good Roof Condition: The roof of the building must be in good condition and able to support the weight of the solar panel system for its expected 25+ year lifespan. Roofs with existing leaks, damage, or nearing the end of their useful life are not suitable .It should also be able to support the weight and layout of the solar panel system.
- Roof Type and Slope: The type of roof (flat or pitched) and its slope/orientation will determine the optimal mounting angle and racking system for the solar panels. If you have a flat roof, you will also need ballasts to get the right angle for solar panels. If your roof is pitched, the ideal angles are between 30 to 50 degrees in the UK.
- Permissions and Approvals: Obtaining necessary permits and approvals from local authorities is required before installation can begin. This may involve submitting system designs and plans to the city council for review.
- Site Evaluation: An evaluation of the site's solar exposure, potential shading issues, and available space is crucial to determine the appropriate system size and layout.
- Pass-through Ownership Structure: A pass-through ownership structure (sole proprietorships, partnerships, LLCs, S-corps) will allow you to take advantage of certain solar tax credits and incentives.
Are commercial solar panels worth it in the UK?
In conclusion, commercial solar panels are worth it and are a great addition to your business. The ROI is great as you can save from £2,550 to £25,500 annually, depending on the system. Your business can become more energy efficient and it is a sustainable long-term investment.
With more businesses going solar in the UK, it might be the right time for your business to make the switch to a clean energy source. The financial incentives along with the increase in property value are additional advantages of installing solar panels. But of course, you need to assess if your building has the right infrastructure to support the installation of commercial solar panels.
To navigate the process of finding the right solar panel manufacturer and installing commercial solar panels you will need assistance from an industry expert. Finding the right installer can take hours of research, which is not ideal for a busy business owner.
To save your time and effort, use the Household Quotes service and get up to 4 free and non-binding quotes from vetted solar installers in your area. You can compare the quotes and choose the best deal for your business. Start by clicking below!
- Quotes from local installers
- Payment by finance available
- Save up to £915 per year
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