When it comes to Solar Panel Installation on commercial properties, it makes more financial sense than most people realize. Falling installation costs, rising electricity prices, and various incentive schemes mean most businesses see payback periods of only a few years. After that, businesses can take advantage of generating free electricity for up to 20 years, which results in free savings for them.
The most cost effective commercial properties solar panels work on is businesses because they tend to consume more electricity during the daylight, which is when the solar panels generate the most power. Unlike domestic installations where the energy generation happens at night, the solar energy from commercial solar panels is being consumed.
How Commercial Solar Works
Solar panels work by converting sunlight into DC electricity. An inverter then converts that into AC electricity that your building can use. You first use the electricity that you generate, which means the more power your solar system makes the less you will need to draw from the grid. If you generate more than you need, you can send that excess electricity back to the grid.
The main financial gain comes from not having to buy as much from your electricity supplier as the competitor. Electricity from the grid costs much more per unit than what you are paid for surplus generation. As such, the more of your generated electricity you use yourself, the better the economics work.
Battery storage systems are able to capture surplus generation during the day. This allows for use of the stored electricity generated during the day for evening or night hours. This allows for clients to increase the percentage of electricity consumed to come from their solar installation rather than the grid. Whether or not batteries are a good investment depends on their electricity usage are and how much surplus generation would be exported.
Selecting the Size of your Solar Installation
The size of installation that makes sense depends on your roof size, your electricity use, and how much you are willing to spend. There is not much value in installing large arrays if you are not going to use the generated electricity. This is particularly true if you are going to be exporting most of it at low rates rather than offsetting the expensive grid electricity.Analyzing your electricity usage over the past year, combined with assessing the size and usable area of your roof, allows us to determine what size installation makes the most financial sense. For some businesses, the most economically financially viable option is actually much smaller than what could technically fit as optimal. This is due to the fact that it is better to fully utilize a smaller generation than to oversize and underutilize smaller generation than to oversize and export over a larger unused portion of the generation.
Also, considering the condition of your roof is important. If your roof is around the end of its life cycle and has to be replaced, that will definitely be better off getting done before solar as well. It will be a waste of time and money to take panels off and reinstall them during a roof replacement.
The Installation Process
The size of the solar system will determine how long the installation will take. It can be anywhere from a few days to about a week and a half, as the work done in installation includes mounting frames to your roof, the panels, and then running the cables to your plant room and finally, connecting them to the inverter with the generation meter.
Regarding DNO approval, we take care of all the notifications and paperwork. DNO approval is required for larger systems so that they can make sure the grid connection can handle all of the electricity you will be exporting.
Most commercial installations will be have little to no impact on your business activities. Most activities take place on the rooftop and the only time electrical isolation is required is during connection to your distribution board.
Financial Returns and Incentives
Under the Smart Export Guarantee, you are compensated for the amount of electricity you sell to the grid. Different suppliers offer varying rates so you will want to find the best export tariff. Some tariffs offer higher payments for electricity sold during peak hours, which can benefit businesses that are open during standard business hours.
Capital allowances permit businesses to account the installation expense as a deduction against corporation tax. The Annual Investment Allowance currently covers the full cost of qualifying expenditure, offering substantial tax relief in the year of the installation.
The best return is without a doubt the electricity that you do not purchase. With the current prices of commercial electricity, every unit you generate pays for itself by saving you the retail cost of that electricity and the various other fees that are associated with it. Over time, it adds up.
Impact on Your EPC and Compliance
The EPC rating on your commercial property will improve with the installation of solar. This is great for compliance and property value as properties that have on-site renewable generation are rated higher than those that rely solely on grid electricity.
The effect on your rating is determined by how renewable your installation is compared to the electricity your building uses. For buildings that are near the minimum E rating, being able to use solar is the difference between having a compliant or non-compliant EPC.
Solar Maintenance and Longevity
Solar panels are very maintenance friendly. Usually, rain is sufficient to wash the panels, however, during the dusty or polluted times having cleaning maintenance would be a good point. Panels are protected by a warranty that lasts 25 years and are expected to last even longer, producing electricity but at a lower efficiency.
During the lifetime of the system, inverters are expected to be replaced once. This occurs at the 10 to 15 years time point and tends to be a known smaller cost compared to the costs of installation. In the payback period of your system, most installation quotes are expected to include the costs of inverter replacement.
Solar Monitoring and Performance
Modern solar systems include monitoring that shows real-time generation, total production, and electricity exported. This lets you see exactly how you’re generating and track your system’s performance over time.
Shading from new buildings or trees, panel faults, or inverter issues are often the causes of generation faults. Increasingly, monitoring is able to warn of problems that significantly impact generation.
Will Solar Be Beneficial to You?
Solar works best for homes with south-facing roofs, high electricity use during the day, and long-term ownership. If you plan to sell the property in the next few years, you won’t see the benefits as the new owner would reap most of the rewards.
Roofs that are north-facing, have shading issues, or use very little electricity see poorer returns. Proper assessments should be considered on all properties rather than a guess that solar won’t work. Even less-than-ideal conditions solar provides acceptable returns if solar is considered.
Solar proves to be a great way to show customers and clients that your business cares about the environment. Most clients are now more interested than ever in the environmental sustainability of your business. If your business is eco-friendly, solar installation shows and communicates that message.