What are the benefits of installing commercial solar panels?

Installing a commercial solar array has many benefits for your business, whether its financial, commercial, environmental or social. In this article, we will explain some of those benefits - Leaving you in no doubt that installing solar panels and adopting a renewable energy strategy is the key to unlocking a competitive advantage.

Financial benefits

We’ll start with the financial benefits, because we know that it is a key factor that business owners and company boards are considering when it comes to installing a solar array.

Reduction in operating costs

• Lower energy bills: One of the most immediate and tangible economic benefits for your business is the reduction in electricity costs. By generating your own power, you can reduce reliance on more expensive grid electricity leading to substantial savings on energy bills and an increase in profitability or competitiveness. Many solutions are cash flow positive from the outset and can be off balance sheet.

• Predictable energy costs: Solar energy provides your business with more stable and predictable energy costs, shielding you from the volatility of traditional energy markets, something that we have all been subject to in recent years. This predictability is crucial for long-term financial planning and, as described below, can give you a competitive advantage.

Return on Investment (ROI)

• Attractive payback periods: The initial investment in a commercial solar system typically pays for itself within 5 to 7 years, depending on the location, available incentives, and market-based energy costs. After the payback period, the system continues to generate electricity, with very low costs to maintain the system, for the remainder of its lifespan, which can be 25 years or more. Many of our customers save in to the millions of pounds against the cost of their energy in the lifetime of their system.

• High Return on Investment (ROI): The relative short payback period also means that commercial solar installations generate significant returns relative to the initial investment. And, on top of this, often the ROI is given a boost with tax incentives such as generous investment allowances. My colleague, Jamie Brimblecombe, has written a separate blog post on this.

Increase in property value

• Higher asset value: If you’re a landlord or you own your own property, then commercial properties equipped with solar energy systems often see an increase in market value and attract better tenants due to the reduction in operating expenses and the green credentials of the building. Landlords can sell the energy to their tenant for less than the price of their grid energy, for a recurring revenue.

Commercial benefits

Competitive advantage

• Brand differentiation: You can differentiate your business in the market by promoting your green credentials, which can attract customers, partners, and employees who prioritise sustainability.

• Innovative image: Adopting cutting-edge solar technology and telling your customers about it, can position your business as an industry leader in innovation and environmental responsibility.

Operational resilience

• Energy independence and security: With your own on-site electricity through solar, you can reduce your business’ dependence on the grid, which may become increasingly important as demand increases.

• Energy storage options: Coupling solar systems with energy storage solutions (like batteries) can further enhance operational resilience, allowing businesses to store excess energy and use it during peak times or emergencies and can also be traded as an additional revenue source.

Social & environmental benefits

Environmental impact

• Reduced carbon footprint: Solar energy is a clean and renewable source of power, helping you reduce your CO2 emissions which is a key element of the UK’s Net Zero plans.

• Support for renewable energy sector: By investing in solar, you can help drive demand for renewable energy technologies and contribute to the growth of the green economy.

Enhanced Corporate Social Responsibility (CSR):

• Meeting sustainability goals: Your business will no doubt have sustainability targets. Installing solar power is a very tangible way to meet those goals with an extensive list of additional benefits

• Positive perception: Companies that adopt solar energy can enhance their reputation by demonstrating a commitment to environmental stewardship. Increasingly, customers, employees and investors are insisting on working with businesses that have strong CSR credentials.

Final thoughts

It is clear that commercial solar panels offer businesses a combination of financial savings, environmental benefits, and strategic advantages that make them an attractive and responsible choice. Since Eden Sustainable started trading in 2014, we have continued to successfully provide commercial and industrial customers with market leading (and award winning) solar solutions, saving them money and reducing their carbon impact. We love to help clients fully understand the potential of their site, offering practical and easy to digest advice about their responsibilities and the options that are available to them. If you’re thinking about making the switch to a more sustainable energy future, then contact us and we’d love to help you unlock the benefits.

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Take the Next Step Towards a Sustainable Future

Investing in solar energy is a significant step towards sustainability, but maintaining that investment is equally important. With Eden's comprehensive O&M services, you can ensure that your solar systems remain efficient, reliable, and safe for years to come.

Ready to optimize your solar investment? Contact us today to learn more about our O&M services and how we can help you achieve your sustainability goals. Together, we can power a greener future.