Cost-Benefit Analysis of Commercial Solar Panels

As energy costs continue to fluctuate, many businesses are seeking stability through renewable energy sources like solar PV panels. The financial benefits of commercial solar panels are becoming increasingly clear, making them one of the most popular renewable energy options for businesses today.

At SESC Solutions, we bring years of experience in the solar power industry, and we’ve seen first-hand how commercial solar panel systems can make a substantial difference to businesses.

In this guide, we explore the key cost benefits of installing a solar panel system for your business.

Understanding the Costs of Solar Panel Installation

Before exploring the cost benefits, it’s important to understand the initial outlay for a solar panel system. However, the exact cost can vary, depending on several factors:

  • Permission from the District Network Operator (DNO)
  • Size of the system required
  • Energy production needed to power your business
  • The mounting system selected
  • Whether energy storage solutions are required
  • The type of inverter setup – standard, optimised, or micro-inverters
  • Material costs at the time of installation

At SESC Solutions, we design bespoke systems tailored to your specific needs, so installation costs will vary based on your unique requirements.

Financial Benefits of Commercial Solar Panels

Despite the upfront investment, the long-term financial gains of installing commercial solar panels can significantly outweigh the initial costs.

1. Reduced Energy Bills

Photovoltaic (PV) solar panels offer a proven way to reduce energy bills. With electricity from third-party suppliers typically costing between 20p and 35p per kWh, compared to around 5p per kWh for solar-generated electricity, businesses can save up to 30p per kWh. These savings can quickly result in a noticeable reduction in your energy bills.

2. Stable Energy Prices

By generating your own energy, you reduce your dependence on the National Grid, protecting your business from the unpredictable fluctuations of energy prices. Achieving energy independence allows for greater control over your costs, providing more predictable and stable pricing.

3. Lower Carbon Emissions

Reducing carbon emissions may not seem like a direct financial benefit, but it can help you avoid carbon taxes by complying with environmental regulations. Additionally, adopting renewable energy sources can enhance your company’s reputation, potentially attracting eco-conscious customers and partners.

4. Income Generation

Another financial advantage of solar panels is the potential to generate additional income. Through schemes like the Smart Export Guarantee (SEG), businesses can sell excess energy back to the National Grid, creating an extra revenue stream to further boost profit margins.

5. Government Incentives and Tax Benefits

The UK government and local authorities offer several incentives to encourage businesses to adopt solar energy. Some financial perks include:

  • Green Energy Loans: Low-interest loans or grants to support businesses in investing in renewable energy technologies.
  • Enhanced Capital Allowances (ECA): Businesses can reduce their corporation tax by deducting the cost of energy-efficient equipment.
  • Climate Change Levy (CCL) reductions: Companies using renewable energy may qualify for lower taxable electricity costs.

Long-Term Financial Benefits

The long-term financial rewards of commercial solar panels can future-proof your business against rising energy prices. Solar panels can increase property value, making your business more attractive to investors or buyers who value sustainability. Moreover, embracing solar energy can enhance your brand's reputation and give you a competitive edge, helping to attract new customers and retain existing ones.

 

Power Purchase Agreements (PPA)

A Power Purchase Agreement (PPA) provides businesses with a financial benefit by allowing them to lease roof space or land to a solar provider, which installs and maintains the solar system.

In return, your business can purchase the generated electricity at a discounted rate for an agreed period, without having to pay the upfront installation costs.

Experience the Financial Benefits of Commercial Solar Panels As demonstrated, the financial benefits of installing commercial solar panels extend far beyond reducing your energy bills.

From income generation and future-proofing your business to taking advantage of tax incentives, solar panels offer a smart financial and environmental investment.  

Get Expert Advice About Solar Panels For Your Business

At SESC Solutions, our expert team has worked across multiple industries, from hospitals to manufacturing and farming. We stay up-to-date with the latest grants and incentives, ensuring you get the best advice and savings.

If you’d like more information about the financial benefits of commercial solar panels or want to discuss installing a system for your business, contact our team today.

Call us on 01747 445 509 or fill out our online enquiry form to request a callback.

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