1. Are solar panels worth it for business?
Many people when asking this question may be thinking about costs, and any potential returns. Naturally, cost/return isn’t the only consideration regards the installation of solar panels at a workplace. Environmental impact and issues have become critically important to many businesses and public sector organisations. Whether that’s targets set a Government level or in order to demonstrate to customers that a business truly cares about their impact on the environment. A recent study by the Guardian [https://www.theguardian.com/sustainable-business/environmentally-friendly-sustainable-business-profitable] demonstrated that environmentally green businesses can increase their profitability and enhance their competitiveness significantly.
In addition, a further study by Recycling Lives [https://www.recyclinglives.com/news/general/report-reveals-81-people-prefer-buy-sustainable-sellers] found that 81% of consumers prefer to buy from environmentally sustainable and conscious businesses. That’s a huge amount of your target audience looking at your green credentials, and those of your competitors.
Looking at the articles above and more broadly the step change in environmental conscientiousness we have to conclude that installing solar panels for business is most definitely worth it and should be part of any commercial or public sector organisations corporate and social responsibility package.
2. Can I write off solar panels for my business?
The great news is that on March 31st 2021 the Chancellor, Rishi Sunak, announced the 50% first year allowance for business investment, including solar panels until at least March 2023. That means that if you install your solar panels in the next two years you’ll be immediately able to claim 50% of the cost against any operating profits.
For many businesses this will offer a significant saving against the install cost of solar panels. In addition you’ll be doing your bit for the environment and benefiting from cheaper energy costs in the future. It really is a win win!
If you’d like to have a conversation about your solar panel install project, please drop me an email eddie@aspectenergymanagement.co.uk
3. Can I get a government grant for solar panels in the UK?
There are currently no Government grants for solar panels in the UK but as discussed in point two above there are tax breaks on solar panel installs for the next two years, which can offer a significant saving when deducted against company profits.
It doesn’t look likely that there’ll be any further Government grants for solar panels in the near future – so with the tax break savings over the next two years (until 2023) right now really is a great time to have your business solar panels installed.
We’d also advise that it’s often worth a chat with your local Government office to see if there are any local business grants available relating to environmental projects, if you don’t ask you don’t get, as they say!
4. Will I generate income from solar panels if my business installs solar panels?
We recently completed a large public sector solar panel install job for Southampton City Council, and you can read the case study on our website here: https://www.aspectenergymanagement.co.uk/case-studies/solar-pv-install-high-rise-building and this project offered a payback of only 6 years versus the initial cost of the job.
We calculate this payback period by looking at the power generated by the solar panels and the savings in energy for the business or organisation. So the answer to question four is that rather than direct income from solar panels you’ll receive credits from the energy company which will offset energy costs for your business or organisation. These savings overtime will offer significant benefits to the company.
In addition, and as we discussed earlier in this blog, many studies are now coming out demonstrating that businesses with green credentials are often leaner, more attractive to consumers and as such increase their profits over time versus non-environmentally concerned competitors.
5. How much do solar panels cost for business?
As with most things costs really do depend on the nuances involved in the individual project or job. As you’d rightly imagine an install of 100s of solar panels on a tall building will be more costly than a few solar panels on a domestic home. However, and again as already discussed, the initial cost of any installation project can be paid back over the short term from energy cost savings – and with the current 50% first year allowance those costs can be offset still further.
We’d love to help you with your solar panel install project. Send an email to eddie@aspectenergymanagement.co.uk or call us 0114 294 5188. As commercial solar panel installers in the UK we’re here to provide the best advice for your specific requirements.
