With some microbusinesses using up to 15,000 kWh (kilowatt hours) of energy each year, the cost of running a business can add up. The good news is that solar power could be a long-term solution to rising energy costs, so why don’t more commercial buildings use solar?
Here, we take a look at the pros and cons of using solar panels on commercial buildings to see if your business could benefit.
Solar energy doesn’t just help the environment by cutting back dependency on fossil fuels, it can help your business too, for example, by:
Like most things, where there are advantages, there are drawbacks too, and solar energy is no different, for example:
Solar panels are a long-term investment but with energy costs predicted to double over the next decade, solar panel and combined with solar batteries is an investment that you should consider now.
If the upfront cost is holding you back, some solar panel installers offer what’s called the power purchase agreement or PPA for short. Contracts are likely to vary according to the installer but typically, your solar panels will be installed on your property with either no upfront costs or a deposit. The installer will then sell you the energy generated at a preferential (lower) rate.
When your contract ends, you’ll be able to extend the agreement, buy the panels yourself or ask the installer to remove them from your property.
Yes, businesses that have invested in green energy installations and energy, already benefit from business rates relief introduced in April 2022.
If you generate excess energy, you can sell it back to the National Grid. The long-term savings you make on energy bills can also be reinvested into your business.
You can claim certain capital allowances which cuts the amount of tax you pay. To qualify for relief, you’ll need to meet the government’s criteria but if you do qualify, it means you can deduct the full cost from your pre-tax profit.
Ultimately, whether or not solar panels for your business are a good investment for you, will depend on the nature of your business. Before making any decisions, it’s well worth doing your homework and considering key points, for instance:
If you’re looking for advice or guidance on commercial solar panels, why not contact us to see if we can help. You can call us on 01953 882787 or drop us a message at email@example.com.