Commercial solar panels are catching on fast among UK businesses. With energy prices on the up, the toll of conventional energy sources on the environment, and the prospect of government grants, solar panels provide businesses with an economical and eco-friendly energy alternative.
We'll look into the perks of commercial solar panels, the array of installations on offer, the monetary savings businesses can anticipate, and the roadmap to planning and installation. Whether you're running a factory, an office block, or a farm, commercial solar panels could be your ticket to slashing utility costs, shrinking your carbon footprint, and attaining energy self-sufficiency.
| Commercial quote | Panel Size | Metal Roof | Pitched Roof | Ground Mount | Flat Roof |
|---|---|---|---|---|---|
| 10KW | 430w | £9,987 | £10,986 | £11,485 | £11,785 |
| 20KW | 430w | £13,984 | £15,382 | £16,082 | £16,501 |
| 30KW | 430w | £18,226 | £20,049 | £20,960 | £21,507 |
| 40KW | 430w | £23,966 | £26,363 | £27,561 | £28,280 |
| 50KW | 430w | £28,557 | £31,413 | £32,841 | £33,697 |
| 60KW | 430w | £32,689 | £35,958 | £37,592 | £38,573 |
| 70KW | 430w | £38,112 | £41,923 | £43,829 | £44,972 |
| 80KW | 430w | £42,339 | £46,573 | £48,690 | £49,960 |
| 90KW | 430W | £46,223 | £50,845 | £53,156 | £54,543 |
| 100KW | 430w | £50,233 | £55,256 | £57,768 | £59,275 |
Note: The quoted solar prices in this chart are subject to survey. Factors that can affect the prices include but are not limited to; Scaffolding n, Location of property, Property type, Inverter size, Bird Guard, Type of mounting manufacturer and how may roofs the panels are mounted over.
The answer isn't a one-size-fits-all, as it depends on several variables such as the system size, your energy requirements, and the available roof space. On average, for a 100kW solar system in the UK, businesses might be looking at an investment range of around £60,000 to £90,000 [1].
But here's the silver lining - there are several ways to ease that initial cost. The government offers grants and incentives to businesses investing in solar panels [2]. Additionally, financing options like asset finance are also available. One popular financing route is Power Purchase Agreements (PPAs), which allow businesses to buy solar power at a pre-agreed, stable rate [3].
Investing in commercial solar panels can be a smart financial move for many businesses. One of the key factors to consider is the payback period, which is when the savings from the solar energy system equal the initial investment.
On average, after taking into account the projected costs and benefits, adjusting for inflation, and applying a typical discount rate of 3.5%, commercial solar panels can pay for themselves in as little as a 2-3 years compared to residential solar which averages 6-10 years, respectively.
| System Size (kW) | Average Cost (£)[1] | Estimated PV Output (kWh/year)[2] | Estimated Annual Savings (£)[3] | Estimated Payback Period (years) |
|---|---|---|---|---|
| 4 | £7,000 | 3,400 | £1,020 | 6 years |
| 10 | £15,000 | 8,500 | £2,550 | 5 years |
| 50 | £50,000 | 42,500 | £12,750 | 3 years |
| 100 | £90,000 | 85,000 | £25,500 | 2 years |
The Estimated PV Output is calculated assuming that each kW of solar panels produces 850 kWh/year[2]. The Estimated Annual Savings is calculated using an average electricity cost of 30p/kWh[3]. The Estimated Payback Period is the Average Cost divided by the Estimated Annual Savings[4].
Please note, these are just estimates. The actual figures can vary depending on many factors including the location, the orientation of the solar panels, the amount of sun the location receives, and the current cost of electricity.
These case studies demonstrate the positive impact and remarkable payback period (2-3 years) that can be accomplished with commercial solar panels. Take a look at some our recent commercial work:
"The initial system cost of £63,600.00 is expected to be recouped after 3 years.”
The system is expected to generate 57934 kWh per year initially, decreasing gradually as the solar cells degrade. Over the 25 year term of this fnancial projection the total generation is expected to be 1352940 kwh, of which 1104610 kWh will be consumed on site and 248329 kWh exported.
After adjusting projected costs and benefts for infation, and applying a discount rate of 3.5%, the initial system cost of £63,600.00 is expected to be recouped after 3 years.
The total present value of future benefts and costs, using a discount rate of 3.5% per year, is £527,107.83. The cost of the PV system is £63,600.00. The net present value of the project is therefore £474,107.83. A positive net present value is a good indication that the project is fnancially worthwhile.
The Internal Rate of Return is a useful measure for comparing the relative proftability of investments - 29.1% ROI.
| System Size (kW) | Annual Generation (kWh) | 25 Year Term Generation (kWh) | Consumed On Site (kWh) | Exported (kWh) | Cost (£) |
|---|---|---|---|---|---|
| 62.25 | 57,934 | 1,352,940 | 1,104,610 | 248,329 | £63,600 |
| Item | Quantity |
|---|---|
| Perlight Delta 415W Total Black - Commercial solar panel | 150 |
| Solis 50kW S5 5x MPPT - 3 Phase inverter | 1 |
| Emlite EMP1 Three Phase meter | 1 |
| Label sheet | 1 |
| DC cable warning sticker sheet | 1 |
| Solis 3phase Meter | 1 |
| Solis Data Logging Stick - Wi-Fi & LAN 4-Pin | 1 |
| AC isolator - KN 100A 4-pole | 2 |
| DC isolator - KGD40-4 | 3 |
| Pair of MC4 connectors | 20 |
| DC isolator - KGD40-3 | 1 |
| DC isolator - KG32-4 | 1 |
| 100m reel of 6mm2 solar cable | 4 |
| Fastensol mini rail 140mm (landscape) | 176 |
| Fastensol end clamp (30mm black) | 128 |
| Fastensol mid clamp (30mm black) | 236 |
| Fastensol mini rail 400mm (portrait) | 188 |
| Year | Export Payments | Electricity Savings | Total |
|---|---|---|---|
| 1 | £604 | £14,649 | £15,253 |
| 2 | £643 | £15,594 | £16,237 |
| 3 | £684 | £16,600 | £17,284 |
| 4 | £728 | £17,671 | £18,400 |
| 5 | £775 | £18,811 | £19,587 |
| 6 | £825 | £20,025 | £20,850 |
| 7 | £879 | £21,317 | £22,195 |
| 8 | £935 | £22,692 | £23,627 |
| 9 | £996 | £24,156 | £25,151 |
| 10 | £1,060 | £25,714 | £26,774 |
| 11 | £1,128 | £27,373 | £28,501 |
| 12 | £1,201 | £29,139 | £30,340 |
| 13 | £1,278 | £31,019 | £32,297 |
| 14 | £1,361 | £33,020 | £34,381 |
| 15 | £1,449 | £35,150 | £36,599 |
| 16 | £1,542 | £37,418 | £38,960 |
| 17 | £1,642 | £39,832 | £41,473 |
| 18 | £1,748 | £42,401 | £44,149 |
| 19 | £1,860 | £45,137 | £46,997 |
| 20 | £1,980 | £48,049 | £50,029 |
| 21 | £2,108 | £51,148 | £53,256 |
| 22 | £2,244 | £54,448 | £56,692 |
| 23 | £2,389 | £57,961 | £60,350 |
| 24 | £2,543 | £61,700 | £64,243 |
| 25 | £2,707 | £65,680 | £68,387 |
Assumptions:
| Year | Discounted Benefits (£) | Cumulative Benefits (£) | Discounted Costs (£) | Cumulative Costs (£) | Cash Flow (£) |
|---|---|---|---|---|---|
| 1 | £14,986 | £14,986 | £0 | £53,000 | -£38,014 |
| 2 | £15,394 | £30,381 | £0 | £53,000 | -£22,619 |
| 3 | £15,814 | £46,195 | £0 | £53,000 | -£6,805 |
| 4 | £16,245 | £62,440 | £0 | £53,000 | £9,440 |
| 5 | £16,688 | £79,127 | £0 | £53,000 | £26,127 |
| 6 | £17,143 | £96,270 | £0 | £53,000 | £43,270 |
| 7 | £17,610 | £113,880 | £0 | £53,000 | £60,880 |
| 8 | £18,090 | £131,970 | £0 | £53,000 | £78,970 |
| 9 | £18,583 | £150,553 | £0 | £53,000 | £97,553 |
| 10 | £19,089 | £169,642 | £0 | £53,000 | £116,642 |
| 11 | £19,610 | £189,252 | £0 | £53,000 | £136,252 |
| 12 | £20,144 | £209,396 | £0 | £53,000 | £156,396 |
| 13 | £20,693 | £230,089 | £0 | £53,000 | £177,089 |
| 14 | £21,257 | £251,346 | £0 | £53,000 | £198,346 |
| 15 | £21,836 | £273,182 | £0 | £53,000 | £220,182 |
| 16 | £22,432 | £295,614 | £0 | £53,000 | £242,614 |
| 17 | £23,043 | £318,657 | £0 | £53,000 | £265,657 |
| 18 | £23,671 | £342,328 | £0 | £53,000 | £289,328 |
| 19 | £24,316 | £366,644 | £0 | £53,000 | £313,644 |
| 20 | £24,979 | £391,623 | £0 | £53,000 | £338,623 |
| 21 | £25,660 | £417,282 | £0 | £53,000 | £364,282 |
| 22 | £26,359 | £443,641 | £0 | £53,000 | £390,641 |
| 23 | £27,077 | £470,719 | £0 | £53,000 | £417,719 |
| 24 | £27,815 | £498,534 | £0 | £53,000 | £445,534 |
| 25 | £28,574 | £527,108 | £0 | £53,000 | £474,108 |
Our fnancial model calculates the benefts of a solar PV installation (such as savings in electricity, or payments for exported electricity) and costs (the initial purchase cost, and any future maintenance costs if entered), over the projected lifespan of the system.
Values are corrected for infation, system degradation, and discount rate - a measure that accounts for the fact that a promise of a monetary sum in the distant future is usually considered less valuable than the promise of the same sum in the near future.
A model is only as accurate as the assumptions it makes.
You should consider whether the values chosen are appropriate for your situation. There are many variables that dictate the fnancial return of a solar installation and we cannot forecast how they may change in the future. This fnancial projection shows a likely scenario for future fnancial returns. Actual returns may vary signifcantly from this forecast.
"The initial system cost of £63,600.00 is expected to be recouped after 3 years.”
The system is expected to generate 40977 kWh per year initially, decreasing gradually as the solar cells degrade. Over the 25 year term of this fnancial projection the total generation is expected to be 956941 kwh, of which 1096773 kWh will be consumed on site and -139833 kWh exported.
After adjusting projected costs and benefts for infation, and applying a discount rate of 3.5%, the initial system cost of £42,000.00 is expected to be recouped after 2 years.
The total present value of future benefts and costs, using a discount rate of 3.5% per year, is £490,902.20. The cost of the PV system is £42,000.00. The net present value of the project is therefore £455,902.20. A positive net present value is a good indication that the project is fnancially worthwhile.
The Internal Rate of Return is a useful measure for comparing the relative proftability of investments - 37.1% ROI.
| System Size (kW) | Annual Generation (kWh) | 25 Year Term Generation (kWh) | Consumed On Site (kWh) | Exported (kWh) | Cost (£) |
|---|---|---|---|---|---|
| 41.5 | 40,977 | 956,941 | 1,096,773 | -139,833 | £42,000 |
| Item | Quantity |
|---|---|
| Perlight Delta 415W Total Black - Commercial solar panel | 100 |
| Solis 36kW S5 Quad MPPT - 3 Phase inverter | 1 |
| Emlite EMP1 Three Phase meter | 1 |
| Label sheet | 1 |
| DC cable warning sticker sheet | 1 |
| Solis 3phase Meter | 1 |
| Solis Data Logging Stick - Wi-Fi & LAN 4-Pin | 1 |
| AC isolator - KN 63A 4-pole | 1 |
| DC isolator - KGD40-4 | 2 |
| Pair of MC4 connectors | 12 |
| DC isolator - KG32-4 | 1 |
| 100m reel of 6mm2 solar cable | 3 |
| Fastensol mini rail 140mm (landscape) | 80 |
| Fastensol end clamp (30mm black) | 100 |
| Fastensol mid clamp (30mm black) | 150 |
| Fastensol black end cap | 68 |
| Fastensol 200mm hanger bolt for wood | 170 |
| Fastensol rail splice | 34 |
| Fastensol rail 3.3m | 51 |
| Year | Export Payments | Electricity Savings | Total |
|---|---|---|---|
| 1 | -£340 | £14545 | £14205 |
| 2 | -£362 | £15484 | £15122 |
| 3 | -£385 | £16483 | £16097 |
| 4 | -£410 | £17546 | £17136 |
| 5 | -£437 | £18678 | £18241 |
| 6 | -£465 | £19883 | £19418 |
| 7 | -£495 | £21165 | £20671 |
| 8 | -£527 | £22531 | £22004 |
| 9 | -£561 | £23984 | £23424 |
| 10 | -£597 | £25532 | £24935 |
| 11 | -£635 | £27179 | £26544 |
| 12 | -£676 | £28932 | £28256 |
| 13 | -£720 | £30799 | £30079 |
| 14 | -£766 | £32786 | £32019 |
| 15 | -£816 | £34901 | £34085 |
| 16 | -£868 | £37152 | £36284 |
| 17 | -£924 | £39549 | £38625 |
| 18 | -£984 | £42100 | £41116 |
| 19 | -£1048 | £44816 | £43769 |
| 20 | -£1115 | £47708 | £46593 |
| 21 | -£1187 | £50785 | £49598 |
| 22 | -£1264 | £54062 | £52798 |
| 23 | -£1345 | £57549 | £56204 |
| 24 | -£1432 | £61262 | £59830 |
| 25 | -£1524 | £65214 | £63690 |
Assumptions:
| Year | Discounted Benefits (£) | Cumulative Benefits (£) | Discounted Costs (£) | Cumulative Costs (£) | Cash Flow (£) |
|---|---|---|---|---|---|
| 1 | £13,957 | £13,957 | £0 | £35,000 | -£21,043 |
| 2 | £14,337 | £28,294 | £0 | £35,000 | -£6,706 |
| 3 | £14,728 | £43,022 | £0 | £35,000 | £8,022 |
| 4 | £15,129 | £58,151 | £0 | £35,000 | £23,151 |
| 5 | £15,542 | £73,692 | £0 | £35,000 | £38,692 |
| 6 | £15,965 | £89,658 | £0 | £35,000 | £54,658 |
| 7 | £16,400 | £106,058 | £0 | £35,000 | £71,058 |
| 8 | £16,847 | £122,905 | £0 | £35,000 | £87,905 |
| 9 | £17,306 | £140,212 | £0 | £35,000 | £105,212 |
| 10 | £17,778 | £157,990 | £0 | £35,000 | £122,990 |
| 11 | £18,263 | £176,252 | £0 | £35,000 | £141,252 |
| 12 | £18,760 | £195,013 | £0 | £35,000 | £160,013 |
| 13 | £19,272 | £214,285 | £0 | £35,000 | £179,285 |
| 14 | £19,797 | £234,082 | £0 | £35,000 | £199,082 |
| 15 | £20,337 | £254,418 | £0 | £35,000 | £219,418 |
| 16 | £20,891 | £275,309 | £0 | £35,000 | £240,309 |
| 17 | £21,460 | £296,769 | £0 | £35,000 | £261,769 |
| 18 | £22,045 | £318,814 | £0 | £35,000 | £283,814 |
| 19 | £22,646 | £341,460 | £0 | £35,000 | £306,460 |
| 20 | £23,263 | £364,723 | £0 | £35,000 | £329,723 |
| 21 | £23,897 | £388,620 | £0 | £35,000 | £353,620 |
| 22 | £24,548 | £413,169 | £0 | £35,000 | £378,169 |
| 23 | £25,218 | £438,386 | £0 | £35,000 | £403,386 |
| 24 | £25,905 | £464,291 | £0 | £35,000 | £429,291 |
| 25 | £26,611 | £490,902 | £0 | £35,000 | £455,902 |
Our fnancial model calculates the benefts of a solar PV installation (such as savings in electricity, or payments for exported electricity) and costs (the initial purchase cost, and any future maintenance costs if entered), over the projected lifespan of the system.
Values are corrected for infation, system degradation, and discount rate - a measure that accounts for the fact that a promise of a monetary sum in the distant future is usually considered less valuable than the promise of the same sum in the near future.
A model is only as accurate as the assumptions it makes.
You should consider whether the values chosen are appropriate for your situation. There are many variables that dictate the fnancial return of a solar installation and we cannot forecast how they may change in the future. This fnancial projection shows a likely scenario for future fnancial returns. Actual returns may vary signifcantly from this forecast.
"The initial system cost of £7,349.99 is expected to be recouped after 9 years.”
The system is expected to generate 4,500 kWh per year initially, decreasing gradually as the solar cells degrade. Over the 25 year term of this fnancial projection the total generation is expected to be 104809 kwh, of which 35191 kWh will be consumed on site and 69618 kWh exported.
After adjusting projected costs and benefts for infation, and applying a discount rate of 3.5%, the initial system cost of £7,349.99 is expected to be recouped after 9 years.
The total present value of future benefts and costs, using a discount rate of 3.5% per year, is £20,364.72. The cost of the PV system is £7,349.99. The net present value of the project is therefore £14,239.73. A positive net present value is a good indication that the project is fnancially worthwhile.
The Internal Rate of Return is a useful measure for comparing the relative proftability of investments - 13.4% ROI.
| System Size (kW) | Annual Generation (kWh) | 25 Year Term Generation (kWh) | Consumed On Site (kWh) | Exported (kWh) | Cost (£) |
|---|---|---|---|---|---|
| 4.7 | 4,500 | 104,809 | 35,191 | 69,618 | £7,349.99 |
| Item | Quantity |
|---|---|
| JA Solar 395W Mono - Commercial solar panel | 12 |
| Solis 5kW S6 Dual MPPT -1 phase inverter | 1 |
| Emlite ECA2 extended cover | 1 |
| Label sheet | 1 |
| DC cable warning sticker sheet | 1 |
| Solis Wif Stick DLS-W | 1 |
| Solis Current Transformer 100A 10m | 1 |
| AC isolator - KN 25A 3-pole | 2 |
| DC isolator - KG20-4 | 2 |
| Pair of MC4 connectors | 4 |
| 100m reel of 6mm2 solar cable | 1 |
| Fastensol fat roof tub | 15 |
| Fastensol mini rail 140mm | 60 |
| Fastensol end clamp (30mm black) | 60 |
| Year | Export payments | Electricity savings | Total |
|---|---|---|---|
| 1 | £169 | £420 | £589 |
| 2 | £180 | £447 | £627 |
| 3 | £192 | £476 | £668 |
| 4 | £204 | £507 | £711 |
| 5 | £217 | £539 | £757 |
| 6 | £231 | £574 | £806 |
| 7 | £246 | £611 | £858 |
| 8 | £262 | £651 | £913 |
| 9 | £279 | £693 | £972 |
| 10 | £297 | £737 | £1,034 |
| 11 | £316 | £785 | £1,101 |
| 12 | £337 | £835 | £1,172 |
| 13 | £358 | £889 | £1,248 |
| 14 | £382 | £947 | £1,328 |
| 15 | £406 | £1,008 | £1,414 |
| 16 | £432 | £1,073 | £1,505 |
| 17 | £460 | £1,142 | £1,602 |
| 18 | £490 | £1,216 | £1,706 |
| 19 | £522 | £1,294 | £1,816 |
| 20 | £555 | £1,378 | £1,933 |
| 21 | £591 | £1,467 | £2,058 |
| 22 | £629 | £1,561 | £2,190 |
| 23 | £670 | £1,662 | £2,332 |
| 24 | £713 | £1,769 | £2,482 |
| 25 | £759 | £1,883 | £2,642 |
Assumptions:
| Year | Discounted benefits | Cumulative benefits | Discounted costs | Cumulative costs | Cashflow |
|---|---|---|---|---|---|
| 1 | £579 | £579 | £0 | £6,125 | -£5,546 |
| 2 | £595 | £1,174 | £0 | £6,125 | -£4,951 |
| 3 | £611 | £1,785 | £0 | £6,125 | -£4,340 |
| 4 | £628 | £2,412 | £0 | £6,125 | -£3,713 |
| 5 | £645 | £3,057 | £0 | £6,125 | -£3,068 |
| 6 | £662 | £3,719 | £0 | £6,125 | -£2,406 |
| 7 | £680 | £4,400 | £0 | £6,125 | -£1,725 |
| 8 | £699 | £5,099 | £0 | £6,125 | -£1,026 |
| 9 | £718 | £5,817 | £0 | £6,125 | -£308 |
| 10 | £738 | £6,554 | £0 | £6,125 | £429 |
| 11 | £758 | £7,312 | £0 | £6,125 | £1,187 |
| 12 | £778 | £8,090 | £0 | £6,125 | £1,965 |
| 13 | £799 | £8,889 | £0 | £6,125 | £2,764 |
| 14 | £821 | £9,711 | £0 | £6,125 | £3,586 |
| 15 | £844 | £10,554 | £0 | £6,125 | £4,429 |
| 16 | £867 | £11,421 | £0 | £6,125 | £5,296 |
| 17 | £890 | £12,311 | £0 | £6,125 | £6,186 |
| 18 | £915 | £13,226 | £0 | £6,125 | £7,101 |
| 19 | £939 | £14,165 | £0 | £6,125 | £8,040 |
| 20 | £965 | £15,130 | £0 | £6,125 | £9,005 |
| 21 | £991 | £16,122 | £0 | £6,125 | £9,997 |
| 22 | £1,018 | £17,140 | £0 | £6,125 | £11,015 |
| 23 | £1,046 | £18,186 | £0 | £6,125 | £12,061 |
| 24 | £1,075 | £19,261 | £0 | £6,125 | £13,136 |
| 25 | £1,104 | £20,365 | £0 | £6,125 | £14,240 |
Our fnancial model calculates the benefts of a solar PV installation (such as savings in electricity, or payments for exported electricity) and costs (the initial purchase cost, and any future maintenance costs if entered), over the projected lifespan of the system.
Values are corrected for infation, system degradation, and discount rate - a measure that accounts for the fact that a promise of a monetary sum in the distant future is usually considered less valuable than the promise of the same sum in the near future.
A model is only as accurate as the assumptions it makes.
You should consider whether the values chosen are appropriate for your situation. There are many variables that dictate the fnancial return of a solar installation and we cannot forecast how they may change in the future. This fnancial projection shows a likely scenario for future fnancial returns. Actual returns may vary signifcantly from this forecast.
"The initial system cost of £23,110.24 is expected to be recouped after 6 years.”
The system is expected to generate 10173 kWh per year initially, decreasing gradually as the solar cells degrade. Over the 25 year term of this fnancial projection the total generation is expected to be 237571 kwh, of which 137784 kWh will be consumed on site and 99787 kWh exported.
After adjusting projected costs and benefts for infation, and applying a discount rate of 3.5%, the initial system cost of £23,110.24 is expected to be recouped after 6 years.
The total present value of future benefts and costs, using a discount rate of 3.5% per year, is £103,104.09. The cost of the PV system is £23,110.24. The net present value of the project is therefore £83,845.56. A positive net present value is a good indication that the project is fnancially worthwhile.
The Internal Rate of Return is a useful measure for comparing the relative proftability of investments - 18.9% ROI.
| System Size (kW) | Annual Generation (kWh) | 25 Year Term Generation (kWh) | Consumed On Site (kWh) | Exported (kWh) | Cost (£) |
|---|---|---|---|---|---|
| 10.66 | 10,173 | 237,571 | 137,784 | 99,787 | £23,110 |
| Item | Quantity |
|---|---|
| JA Solar 395W Mono - Commercial solar panel | 27 |
| Solis Energy Storage 6kW Hybrid inverter | 1 |
| Solis 5kW S6 Dual MPPT -1 phase inverter | 1 |
| Emlite EMP1 Three Phase meter | 1 |
| Label sheet | 2 |
| DC cable warning sticker sheet | 1 |
| Solis Wif Stick DLS-W | 2 |
| Solis Current Transformer 100A 10m | 1 |
| Tesla Fittings Pack | 2 |
| AC isolator - KN 32A 3-pole | 2 |
| PureStorage II Battery 5kWh | 2 |
| DC isolator - KG20-4 | 4 |
| Pair of MC4 connectors | 8 |
| AC isolator - KN 25A 3-pole | 2 |
| 50m reel of 4mm2 solar cable | 3 |
| Fastensol end clamp (30mm black) | 32 |
| Fastensol mid clamp (30mm black) | 38 |
| Fastensol black end cap | 32 |
| Fastensol landscape fat tile roof hook | 36 |
| Genius retroft | 70 |
| PV Array Bird Mesh | 2 |
| BirdBlocker clips for square tube (box of 50) | 5 |
| Fastensol rail 3.3m | 23 |
| Fastensol portrait fat tile roof hook | 34 |
| Fastensol rail splice | 8 |
| Year | Export payments | Electricity savings | Total |
|---|---|---|---|
| 1 | £243 | £2,741 | £2,984 |
| 2 | £258 | £2,918 | £3,176 |
| 3 | £275 | £3,106 | £3,381 |
| 4 | £293 | £3,306 | £3,599 |
| 5 | £312 | £3,520 | £3,831 |
| 6 | £332 | £3,747 | £4,078 |
| 7 | £353 | £3,988 | £4,341 |
| 8 | £376 | £4,246 | £4,622 |
| 9 | £400 | £4,520 | £4,920 |
| 10 | £426 | £4,811 | £5,237 |
| 11 | £453 | £5,122 | £5,575 |
| 12 | £483 | £5,452 | £5,935 |
| 13 | £514 | £5,804 | £6,317 |
| 14 | £547 | £6,178 | £6,725 |
| 15 | £582 | £6,577 | £7,159 |
| 16 | £620 | £7,001 | £7,621 |
| 17 | £660 | £7,453 | £8,112 |
| 18 | £702 | £7,933 | £8,636 |
| 19 | £748 | £8,445 | £9,193 |
| 20 | £796 | £8,990 | £9,786 |
| 21 | £847 | £9,570 | £10,417 |
| 22 | £902 | £10,187 | £11,089 |
| 23 | £960 | £10,845 | £11,805 |
| 24 | £1,022 | £11,544 | £12,566 |
| 25 | £1,088 | £12,289 | £13,377 |
Assumptions:
| Year | Discounted benefits | Cumulative benefits | Discounted costs | Cumulative costs | Cashflow |
|---|---|---|---|---|---|
| 1 | £2,931 | £2,931 | £0 | £19,259 | -£16,327 |
| 2 | £3,011 | £5,943 | £0 | £19,259 | -£13,316 |
| 3 | £3,093 | £9,036 | £0 | £19,259 | -£10,223 |
| 4 | £3,178 | £12,213 | £0 | £19,259 | -£7,045 |
| 5 | £3,264 | £15,478 | £0 | £19,259 | -£3,781 |
| 6 | £3,353 | £18,831 | £0 | £19,259 | -£428 |
| 7 | £3,445 | £22,275 | £0 | £19,259 | £3,017 |
| 8 | £3,538 | £25,814 | £0 | £19,259 | £6,555 |
| 9 | £3,635 | £29,449 | £0 | £19,259 | £10,190 |
| 10 | £3,734 | £33,183 | £0 | £19,259 | £13,924 |
| 11 | £3,836 | £37,018 | £0 | £19,259 | £17,760 |
| 12 | £3,940 | £40,959 | £0 | £19,259 | £21,700 |
| 13 | £4,048 | £45,006 | £0 | £19,259 | £25,748 |
| 14 | £4,158 | £49,164 | £0 | £19,259 | £29,906 |
| 15 | £4,271 | £53,435 | £0 | £19,259 | £34,177 |
| 16 | £4,388 | £57,823 | £0 | £19,259 | £38,565 |
| 17 | £4,507 | £62,330 | £0 | £19,259 | £43,072 |
| 18 | £4,630 | £66,960 | £0 | £19,259 | £47,702 |
| 19 | £4,756 | £71,717 | £0 | £19,259 | £52,458 |
| 20 | £4,886 | £76,603 | £0 | £19,259 | £57,344 |
| 21 | £5,019 | £81,622 | £0 | £19,259 | £62,363 |
| 22 | £5,156 | £86,778 | £0 | £19,259 | £67,519 |
| 23 | £5,296 | £92,074 | £0 | £19,259 | £72,816 |
| 24 | £5,441 | £97,515 | £0 | £19,259 | £78,256 |
| 25 | £5,589 | £103,104 | £0 | £19,259 | £83,846 |
Our fnancial model calculates the benefts of a solar PV installation (such as savings in electricity, or payments for exported electricity) and costs (the initial purchase cost, and any future maintenance costs if entered), over the projected lifespan of the system.
Values are corrected for infation, system degradation, and discount rate - a measure that accounts for the fact that a promise of a monetary sum in the distant future is usually considered less valuable than the promise of the same sum in the near future.
A model is only as accurate as the assumptions it makes.
You should consider whether the values chosen are appropriate for your situation. There are many variables that dictate the fnancial return of a solar installation and we cannot forecast how they may change in the future. This fnancial projection shows a likely scenario for future fnancial returns. Actual returns may vary signifcantly from this forecast.
"The initial system cost of £24,096.00 is expected to be recouped after 6 years.”
The system is expected to generate 9054 kWh per year initially, decreasing gradually as the solar cells degrade. Over the 25 year term of this fnancial projection the total generation is expected to be 211439 kwh, of which 156208 kWh will be consumed on site and 55231 kWh exported.
After adjusting projected costs and benefts for infation, and applying a discount rate of 3.5%, the initial system cost of £24,096.00 is expected to be recouped after 6 years.
The total present value of future benefts and costs, using a discount rate of 3.5% per year, is £112,025.97. The cost of the PV system is £24,096.00. The net present value of the project is therefore £91,175.07. A positive net present value is a good indication that the project is fnancially worthwhile.
The Internal Rate of Return is a useful measure for comparing the relative proftability of investments - 19.4% ROI.
| System Size (kW) | Annual Generation (kWh) | 25 Year Term Generation (kWh) | Consumed On Site (kWh) | Exported (kWh) | Cost (£) |
|---|---|---|---|---|---|
| 11.85 | 9,054 | 211,439 | 156,208 | 55,231 | £24,096 |
| Item | Quantity |
|---|---|
| JA Solar 395W Mono - Commercial solar panel | 30 |
| Solis 12kW S5 Dual MPPT - 3 Phase inverter | 1 |
| Tesla Gateway 2 - not an inverter | 1 |
| Emlite EMP1 Three Phase meter | 1 |
| Label sheet | 2 |
| iBoost + | 1 |
| DC cable warning sticker sheet | 1 |
| Tigo Retroft Frame Mounted Optimiser TS4-A-O | 2 |
| Tesla Fittings Pack | 1 |
| Solis 3phase Meter | 1 |
| Solis Data Logging Stick - Wi-Fi & LAN 4-Pin | 1 |
| AC isolator - KN Newbury 20A 4-pole | 2 |
| Pair of MC4 connectors | 4 |
| AC isolator - KN 32A 3-pole | 2 |
| Tesla Powerwall 2 | 1 |
| 50m reel of 4mm2 solar cable | 2 |
| Fastensol end clamp (30mm black) | 40 |
| Fastensol mid clamp (30mm black) | 40 |
| Fastensol black end cap | 40 |
| Fastensol landscape fat tile roof hook | 52 |
| Genius retroft | 80 |
| Fastensol portrait fat tile roof hook | 28 |
| Fastensol rail splice | 8 |
| Fastensol rail 3.3m | 27 |
| Year | Export payments | Electricity savings | Total |
|---|---|---|---|
| 1 | £134 | £3,107 | £3,242 |
| 2 | £143 | £3,308 | £3,451 |
| 3 | £152 | £3,521 | £3,673 |
| 4 | £162 | £3,748 | £3,910 |
| 5 | £172 | £3,990 | £4,163 |
| 6 | £184 | £4,248 | £4,431 |
| 7 | £195 | £4,522 | £4,717 |
| 8 | £208 | £4,813 | £5,021 |
| 9 | £221 | £5,124 | £5,345 |
| 10 | £236 | £5,455 | £5,690 |
| 11 | £251 | £5,806 | £6,057 |
| 12 | £267 | £6,181 | £6,448 |
| 13 | £284 | £6,580 | £6,864 |
| 14 | £303 | £7,004 | £7,307 |
| 15 | £322 | £7,456 | £7,778 |
| 16 | £343 | £7,937 | £8,280 |
| 17 | £365 | £8,449 | £8,814 |
| 18 | £389 | £8,994 | £9,383 |
| 19 | £414 | £9,574 | £9,988 |
| 20 | £440 | £10,192 | £10,633 |
| 21 | £469 | £10,850 | £11,319 |
| 22 | £499 | £11,550 | £12,049 |
| 23 | £531 | £12,295 | £12,826 |
| 24 | £566 | £13,088 | £13,654 |
| 25 | £602 | £13,932 | £14,534 |
Assumptions:
Here is the markdown table with £ added and year column headers updated:
| Year | Discounted benefits | Cumulative benefits | Discounted costs | Cumulative costs | Cashflow |
|---|---|---|---|---|---|
| 1 | £3,185 | £3,185 | £20 | £20,100 | -£16,915 |
| 2 | £3,272 | £6,457 | £21 | £20,121 | -£13,665 |
| 3 | £3,361 | £9,818 | £22 | £20,143 | -£10,325 |
| 4 | £3,453 | £13,270 | £22 | £20,165 | -£6,895 |
| 5 | £3,547 | £16,817 | £23 | £20,189 | -£3,372 |
| 6 | £3,643 | £20,460 | £24 | £20,213 | £248 |
| 7 | £3,743 | £24,203 | £25 | £20,237 | £3,966 |
| 8 | £3,845 | £28,047 | £26 | £20,263 | £7,785 |
| 9 | £3,949 | £31,997 | £26 | £20,289 | £11,708 |
| 10 | £4,057 | £36,054 | £27 | £20,316 | £15,738 |
| 11 | £4,168 | £40,222 | £28 | £20,344 | £19,877 |
| 12 | £4,281 | £44,503 | £29 | £20,374 | £24,129 |
| 13 | £4,398 | £48,901 | £30 | £20,404 | £28,497 |
| 14 | £4,518 | £53,418 | £31 | £20,435 | £32,984 |
| 15 | £4,641 | £58,059 | £32 | £20,467 | £37,593 |
| 16 | £4,767 | £62,827 | £33 | £20,500 | £42,327 |
| 17 | £4,897 | £67,724 | £34 | £20,534 | £47,190 |
| 18 | £5,031 | £72,755 | £35 | £20,569 | £52,186 |
| 19 | £5,168 | £77,923 | £36 | £20,606 | £57,317 |
| 20 | £5,309 | £83,231 | £38 | £20,643 | £62,588 |
| 21 | £5,453 | £88,685 | £39 | £20,682 | £68,003 |
| 22 | £5,602 | £94,287 | £40 | £20,722 | £73,565 |
| 23 | £5,755 | £100,042 | £41 | £20,764 | £79,278 |
| 24 | £5,912 | £105,953 | £43 | £20,807 | £85,147 |
| 25 | £6,073 | £112,026 | £44 | £20,851 | £91,175 |
Our fnancial model calculates the benefts of a solar PV installation (such as savings in electricity, or payments for exported electricity) and costs (the initial purchase cost, and any future maintenance costs if entered), over the projected lifespan of the system.
Values are corrected for infation, system degradation, and discount rate - a measure that accounts for the fact that a promise of a monetary sum in the distant future is usually considered less valuable than the promise of the same sum in the near future.
A model is only as accurate as the assumptions it makes.
You should consider whether the values chosen are appropriate for your situation. There are many variables that dictate the fnancial return of a solar installation and we cannot forecast how they may change in the future. This fnancial projection shows a likely scenario for future fnancial returns. Actual returns may vary signifcantly from this forecast.
Thinking of switching to solar power for your business? You're not alone. In fact, in the UK, there has seen a 6.7% increase in solar capacity with a record 18,808 installations in June 2023 alone [1]. Here's a comprehensive guide to help you understand the process.
Your energy consumption, roof size, and other site-specific requirements will determine the size of the solar PV system you need. With the UK's total solar capacity standing at an impressive 15 GW as of 2024 [3], more businesses are realising the potential of solar power. A consultation with a commercial solar panel installer can help you gauge the right system size and provide an accurate installation quote.
Getting an installation quote involves evaluating factors like roof space, projected cost savings, system size, and your business's energy consumption. Companies across the UK offer customised quotes based on these factors, and with the National Grid anticipating a fivefold increase in solar PV generation from 14GW to roughly 70GW by 2030 [2], there's never been a better time to make the switch.
Implementing commercial solar panels requires careful consideration of site requirements, potential planning permissions, and choosing the right installers. In the UK, around 10% of households in Cornwall have already installed solar panels [4], showing the growing acceptance of this renewable energy source.
While planning permission may not always be necessary, it's advisable to familiarise yourself with your local council's regulations. Some solar panel grants and incentives may require planning permission, so staying informed ensures a smooth installation process.
Choosing the right solar panel installers can make a difference in efficient installation, reduced maintenance costs, and optimal energy generation. It's crucial to choose experienced installers who can provide expert maintenance, suggest the best solar panels for commercial use, and guide you on potential cost savings.
Solar power accounted for 41.4% of the UK's renewable energy production in 2022 [5], and this number is only set to rise. With the right planning and execution, your business can contribute to this exciting growth.
Whether you're running a farm, a factory, or an office block, solar power can lead to significant cost savings, a reduced carbon footprint, and a brighter future for all.
Imagine turning your business rooftop into a personal power station. In the UK, the average commercial solar panel system can save your business around £1,500 per year on energy bills, according to the Energy Saving Trust [1]. Plus, you'd be utilising an otherwise idle roof space, making it a win-win situation.
If your business premises is blessed with ample land, ground-mounted solar panels could be a splendid choice. They're particularly suitable for businesses without suitable roof space. As per the Solar Trade Association [2], a 4kWp system can generate around 3,800 kilowatt hours of electricity a year in the south of England - that's about the same as a typical household's electricity consumption, mind you!
For farms, solar panels offer a sustainable way to meet energy needs. The National Farmers' Union reports that 30% of farmers in the UK are now using solar power in their operations [3] - that's significant growth in the sector.
Factories can also benefit from solar power. Industrial energy consumption in the UK accounted for 17% of total energy consumption in 2019 [4]. With solar installations, factories can reduce these figures and contribute to a cleaner planet.
Solar power is a brilliant option for manufacturing businesses. The Renewable Energy Hub states that a 50kWp system could save a business about £11,000 a year [5]. That's not just impressive, it's downright revolutionary!
For those in the horticulture industry, solar panels can provide the energy needed to grow plants sustainably. The Solar Trade Association suggests that a 10kWp system can generate around 8,500 kilowatt hours of electricity a year [2]. That's a lot of energy for your green thumbs!
Office buildings can make a significant difference by switching to solar. Businesses can save up to 40% on their energy bills with solar power, according to the Energy Saving Trust [1]. And, let's not forget, it's a rather good look for your company's green credentials.
Solar panels are not just a tool for environmental conservation, they are also a strategic financial decision for businesses. From substantial cost reductions to government incentives, commercial solar panels bring a wealth of benefits to UK businesses.
Solar panels can significantly lower a business's energy bills by generating electricity onsite. With the total solar capacity in the UK standing at 15 GW as of 2023, there's ample evidence of businesses reaping the benefits of this renewable energy source [1].
Solar panels are not just an expenditure; they're an investment with a promising return. In 2023, the UK experienced its best year ever for solar installations, with the number rising above 20,000 for the first time [2]. This surge in installations is a testament to the financial advantages businesses are experiencing.
With solar energy, businesses can better predict their energy expenses, improving financial stability. Solar panels also offer a buffer against fluctuating energy prices, providing a reliable and renewable energy source.
The UK government offers grants, incentives, and funding options for businesses who are considering commercial solar panels. These incentives are designed to make renewable energy generation more accessible and financially viable.
Solar panels are considered a low-risk investment option for businesses in the UK. With a favourable public sentiment (around 88% support as of March 2023[3]) and the potential for significant cost savings on energy bills, installing solar panels is a smart, responsible choice for businesses.
Investing in solar panels is more than just a financial decision; it's a commitment to a sustainable future. By making this choice, businesses are contributing to the growth of renewable energy and the reduction of the carbon footprint in the UK.
The optimal type of solar panel for commercial use depends on various factors such as energy needs, budget, location, and available space. Monocrystalline, polycrystalline, and thin-film solar panels are all options, each with its own advantages.
Monocrystalline panels are known for their high efficiency and compact design.
Polycrystalline panels are usually more affordable and perform well in various light conditions.
Thin-film panels are lightweight and flexible, making them suitable for certain commercial applications.
In the UK, a 100kW solar system can range from £80,000 to £130,000. This cost can vary based on factors like the type of panels used, the location, and installation costs.
Commercial solar panels can be installed on a variety of structures in the UK such as warehouses, factories, offices, farms, and schools. The panels can be either roof-mounted or ground-mounted, depending on the available space and orientation.
The lifespan of commercial solar panels in the UK is typically between 25 to 35 years. This lifespan can depend on factors like the quality of the panels, weather conditions, and regular maintenance.
The break-even point for commercial solar panels depends on several factors, including the initial cost of installation, energy usage, local utility rates, and available grants or incentives. On average, businesses in the UK can expect to break even within around 6 to 9 years.
A commercial solar PV installation in the UK typically includes the solar panels, inverters, mounting systems, and electrical wiring. The process begins with a site assessment, followed by design and permitting, and finally, the installation of the solar panels. A project manager oversees this process to ensure quality and timely completion.
