The Financial Benefits of Solar Panels for UK Businesses

Solar panels are proven technology that is environmentally friendly and a sustainable energy solution for individuals and business owners who want to explore reducing their electricity energy expenses.

The advancements in this technology and government grants have made this technology more attainable and, as a result, have increased the drive to invest in solar power for both commercial and industrial companies. Read on to explore the many benefits that are available when investing in commercial solar panels.

How Does Commercial Solar Panels Generate Electricity?

Solar panels, also known as photovoltaic (PV) panels, collect sunlight to generate electricity through a process called the photovoltaic effect. This technology relies on the unique properties of semiconductors, typically made from crystalline silicon, to convert sunlight into usable electrical energy.

The essential part of a commercial solar panel is the solar cell, which is a thin semiconductor wafer. When exposed to sunlight, the solar cell and the electrons inside the semiconductor are excited by the radiation, making them move. This movement creates an electric current, generating direct current (DC) electricity.

The generated DC electricity from the solar panels is typically converted into alternating current (AC) using an inverter, making it compatible with the electrical grid and most household appliances. Depending on the system setup, the converted electricity can either be used on-site or fed back into the grid.

The Importance of Solar Panels for UK Businesses

Separate from their scientific aspect, solar panels have a specific function for businesses: sustainable energy generation. In the UK, commercial and industrial businesses are increasingly turning to solar panels as a viable solution to reduce energy expenses and promote sustainability.

It’s only in recent years that solar technology has developed to a state where it will support the energy needs of large businesses. Here are examples of various benefits related to solar panels for businesses.

Industrial Solar Panels for On-Site Power Generation

Many businesses in the UK install solar panels on their premises to generate on-site renewable energy. This approach allows them to directly harness sunlight to meet a portion of their electricity demand. By doing so, these businesses can reduce their reliance on the national grid and lower their overall energy expenses.

Reduced Commercial Energy Bills

Solar panels significantly reduce businesses’ energy costs. By generating their own electricity, companies can offset a portion of their grid-supplied power, leading to lower energy bills. The long-term financial benefits of solar panels are particularly attractive, as they offer a stable and predictable source of energy, helping businesses hedge against potential future increases in grid electricity prices.

Grid-Tied Systems and Net Metering

Many commercial and industrial solar installations in the UK are grid-tied systems, allowing businesses to remain connected to the grid while also benefiting from solar power. Excess electricity generated during periods of high sunlight can be fed back into the grid, resulting in additional income through net metering arrangements.

However, to get the most out of your solar panels, you must invest in your installation as early as possible. Connecting your panels to the national grid requires 45 days of application time, but with appropriate planning, this is easily accommodated.

Battery Storage Integration

Some businesses incorporate battery storage systems with their solar installations. This allows you to store excess energy generated during sunny periods and use it during times when solar production is insufficient. Battery storage enhances energy resilience, reduces reliance on grid power during peak demand periods, and can provide cost savings through optimised energy management. This is particularly useful for emergencies when your facility will be able to run on your sustainably sourced power temporarily whilst the main source is restored.

Feed-In Tariffs and Renewable Obligation Certificates (ROCs)

The UK government has implemented various financial incentives to encourage the adoption of renewable energy, including solar power. Feed-in Tariffs (FiTs) and Renewable Obligation Certificates (ROCs) are among the schemes that provide financial rewards for businesses generating renewable energy, such as solar electricity. These incentives make solar panel installations more economically attractive for commercial and industrial entities.

February 2024 VAT Removal for Commercial Solar Panel Installation

From the 1st of February 2024, the VAT on battery storage systems will be reduced to 0%, marking a remarkable milestone in empowering the energy sector and advancing the UK’s sustainability goals. This decision holds the potential to reshape the industry, offering a boost to sustainability efforts and opening new possibilities for both consumers and businesses. Businesses across all industries stand to gain significantly from this policy change, especially companies in the renewable energy and battery manufacturing sectors.

Carbon Emission Reduction and Corporate Social Responsibility (CSR)

The adoption of solar panels aligns with the growing emphasis on corporate social responsibility and sustainability. Businesses can significantly reduce their carbon footprint by generating clean energy from solar panels. This not only helps in meeting environmental targets but also enhances the company’s reputation and appeal to environmentally conscious consumers and stakeholders.

Do Commercial Solar Panels Need to be Installed on a Roof?

There are many elements to consider when designing and installing commercial solar panel systems effectively. As commercial and industrial facilities have larger roof spaces, there are more options to discuss to guarantee the highest solar capture.

As part of our complete project management, our team will visit your location to assess how to install panels facing south safely. For example, once both location and system are chosen, we take into account the roof slope, structural integrity, zoning laws, and other regulations.

Whilst rooftop solar is the most common option for most buildings, there are other choices. Ground-mounted panels are used in industrial and agricultural facilities as the extra space allows the creation of a concise solar panel farm with the added benefit of easy access, which helps with our professional HVAC maintenance. Commercial premises have chosen solar carports for their limited available space. These panels are mounted into a frame that sits above vehicle parking spaces for staff not only to absorb the radiation to generate energy but also to protect the vehicle from the rain.

Tailored Solar Panel Installation at Inergy Group

Our team of expert engineers has the knowledge and experience to design and install a commercial solar panel system tailored to your business’s unique needs. We focus on quality and reliability, using only the best materials and equipment to ensure your solar panel system is built to last. 

We provide a fully costed proposal based on your business requirements. Our installation is fully inclusive of all costs associated with the solar panels and supporting equipment and is managed carefully every step of the way. We highly recommend starting the processes as soon as possible to accommodate the previously mentioned application time and get the most out of your new panel system this summer.

Contact us today to discuss how our design, installation, and aftercare service will be tailored to suit your demands.