What are commercial solar panels?
- Tony Porter
- Nov 15, 2024
- 5 min read
Installing commercial solar panels is a sound investment decision and can help your business realise significant financial, environmental and commercial benefits.
At Eden, we’ve installed hundreds of rooftop and ground-mount solar systems, ranging in size from 50kW to over 2MW – and can happily confirm that all of our customers are delighted to have made the decision to invest in their own on-site, renewable, energy supply.
We know that deciding to invest in technology that lasts 25+ years isn’t a simple decision. So, if you’re weighing-up whether commercial solar panels are right for your business, then see below for Eden’s handy guide on what you need to know in order to get the most out of a commercial solar installation.
Are rooftop solar panels right for my operations?
There are two main factors to consider when deciding whether solar panels are right for you.
Firstly, do your premises consume a reasonable amount of electricity? For a business consuming 150,000kWh per year or more, a well-designed commercial solar installation could have a rapid payback. We look at that a bit more, below.
Secondly, it may seem obvious, but do you have the roof space? Whether you have a classic ‘pitched’ shaped roof, or a more complex roof with skylights and chimneys (or even in the right circumstances asbestos), most commercial buildings can accommodate solar panels. This is something we can work out for you, very quickly.
How much does a solar installation cost and can I afford it?
There are lots of variables that determine the cost of a commercial solar system, including size, system design and grid upgrade requirements. As a rule of thumb, most optimised commercial solar installations cost between £800-£1300 per kWp installed. So, a 100kWp system would likely cost between £80k and £130k. This cost is quickly narrowed down following an initial survey and design.
At Eden, our clients can either pay for the system upfront (‘self-fund’) or you can use our ‘zero capital solution’ (PPAs) which allows you to secure cheaper energy, for 25 years, off balance sheet and with no upfront cost. We are happy to quote for either self-fund or PPA, with both purchase options offering attractive payback and return on investment. We also work with partners for some very innovative cashflow neutral/positive asset finance solutions.
How quickly will I get a return on investment?
At Eden, we have designed and installed hundreds of commercial solar installations. On average, our customers see a return on investment for their commercial solar panels in 4 to 7 years. This can be improved further by claiming tax allowances. So, for a system that lasts 25 years (or more), once you’ve paid back your upfront investment costs you benefit from 20 years of free (other than maintenance costs) zero-carbon electricity.
If you choose to install your system using our ‘zero capital solution’ (PPAs) there are no upfront costs, but you can still obtain electricity at around half the price of grid supplied electricity for 25 years.
What is the environmental benefit? How much carbon will I save?
By installing solar, you are playing a significant role in the UK’s transition to Net Zero. By this, we mean that replacing carbon-intensive energy sources with renewable energy means that you are reducing your carbon emissions – which are a primary driver of global warming
On a 100kWp solar panel system (roughly 180 panels), you can expect to save 26 tonnes of carbon every year. For context, a typical household emits about 4 tonnes of carbon per year, so this is a substantial carbon saving.
There are also benefits for attracting and retaining customers, suppliers and employees. Business and consumer customers are increasingly invested in the sustainability credentials of the companies they buy from. Showcasing that you’ve built your own solar is a great way to grow your customer base, retain and attract suppliers and engage your employees.
How long does a solar design and installation take?
A commercial solar design and installation can be started within four months of a customers’ initial quote. Timing is impacted by Permitted Development Rights (PDR)/ planning permission requirements, DNO approval and financing. The other key determinant is your own decision making and approval process – but this is something we are used to, and we can use our extensive experience to make that process as efficient as possible including quickly answering any questions you or your management team may have.
Once on-site, our highly experienced delivery team can complete your solar installation in a safe manner, before they hand over to our O&M team once all the testing and commissioning steps are taken care of by us.
Can I sell any excess power to the grid?
Selling your excess solar power to the grid will help to reduce your solar panel payback period significantly. As part of our initial design work we will understand if there are any export limitations and these will be factored into financial modelling of your design.
Once we’ve determined your export capability, our O&M team can help to arrange for the appropriate export meters and contracts to be set up, and then manage your regular export and associated payments
How do I maintain my solar installation?
It is important to monitor and maintain your installation to ensure it performs at design levels over its lifetime. The good news is that it’s relatively inexpensive and is a service that Eden can perform for you. The simplest and most important recommendation is to ensure that the panels are cleaned.
In addition, under Eden’s standard operations and maintenance (O&M) service, we will monitor your system’s performance remotely, make regular inspections of components to prevent failure and also ensure safe operations with regular O&M checks.
What are the main benefits of a commercial solar installation?
For most of our clients. the most important benefit from their commercial solar installation is the strong financial case: not only does it significantly reduce operating costs through lower energy bills, it also gives your business cost predictability, energy security and increased property value.
Added to this, many businesses can realise commercial and compliance benefits offering brand differentiation, innovative positioning and strong environmental and social credentials. And last, but by no means least, by investing in solar your business is playing its part in the world’s transition to a lower carbon future – which is good for people and the planet.
Are there any disadvantages to consider
The most regularly misunderstood disadvantage, especially in northern Europe, is weather dependency, as the photovoltaic effect harnessed by solar panels converts energy from the sun. When there is poor weather with clouds, snowfall (or extreme heat), solar panel efficiency will decrease.
However, solar is now an established, widely adopted and reliable technology, able to produce energy with indirect sunlight or in the winter months. Our design and development teams are able to model and forecast the generation and associated savings, This enables us to optimise your system to ensure that you get a secure and reliable energy supply, all whilst maximising your return on investment. This initial feasibility is provided for you and your team to make an informed decision on whether to proceed with the project.
Take your step to a more sustainable future
Eden Sustainable was founded in 2014 and has over a decade of experience building commercial solar solutions and maintaining a very high level of customer satisfaction.
Installing commercial solar panels is a smart investment for most UK businesses looking to reduce energy costs and improve sustainability. Eden’s team are on hand to design and build the perfect solar solution for your business and set you up for long term competitiveness by offering you the information and support you need to make an informed decision.
Contact us today to learn more about our solar services and how we can help you achieve your sustainability goals. Together, we can empower a more sustainable future.
