It is natural for businesses with physical premises to look for ways that they can maximise their efficiencies and minimise expenses. To that end, we have seen many companies choosing to invest in solar panels and other forms of renewable energy over the past few years.
A small array of solar panels can offset your electricity costs, and even allow a business to sell power back to the grid during peak times.
But some companies are going a step further and investing in large arrays of solar panels as a commercial investment. This can potentially be hugely profitable for a business, if they have a large amount of physical space that they currently aren’t using – such as a warehouse with a large south-facing roof. This could be especially ideal for farms or companies in the horticultural industry, as they may have excess space that is currently unused or not profitable.
Here we take a look at whether your business should consider investing in solar panels.
Solar panels save your business money
The first thing to note here is that having a small array of solar panels can be hugely cost efficient for your business. Your electricity bill is not insignificant as a portion of your spending on your facilities, and a strong solar array can not only minimise your electricity bill, it can actually supply you with all the energy you need at high capacity times.
Reducing energy costs can be hugely effective and help you cut down your spending on your premises. But what can be even better about investing in solar panels is that these are an investment that will pay for itself.
How long does it take for solar panels to pay for themselves?
It is often asked how long it takes for panels to pay for themselves. This can be a difficult question to answer as it can depend on a number of factors such as the size of your array, the number of panels that are installed, and the types of solar panels used. But perhaps nothing affects the cost-efficiency of solar panels more than their location.
It should first be mentioned that clearly solar panels that are installed in sunnier areas of the country are able to get a return more quickly – in simple terms, the further south you go, the faster you’ll make a return on solar panels. However, it is actually more important to think about the direction that the panels point in.
South-facing solar panels are the ideal choice, while east- and west-facing arrays can also be used. North-facing panels are not really a viable option in the UK – at this angle there isn’t enough sunlight to make them worthwhile.
A commercial-sized array
Some businesses are interested in panels only to reduce their energy costs and to do their bit for the environment. But you may also be interested in an industrial-scale array if you have the space for installation and the budget to invest.
Commercial solar panel installations are becoming increasingly popular because they can offer an attractive return on investment, as well as being an eco-conscious option.
Whether you have a large roof that is currently going unused, or a piece of land that is not profitable, a large-scale solar panel installation can be an ideal solution. Not only will these installations provide your business with electricity, you are also in a position to export any surplus to the grid in return for a tariff payment.
What could affect your solar panel investment?
It is worth noting that there are also a number of issues that have the potential to affect your solar panel investment. If you are thinking of getting solar panels purely from a commercial investment perspective, these issues can have an impact on your profitability.
- Inflation – if you are signed up for feed in tariff payments it must be stated that these will be affected by inflation.
- Electricity price increases – the cost of electricity can go up sharply, and in this situation, you can save significantly more with an array of panels.
- Cost of installation – these costs are not fixed and have reduced rapidly in recent years; this makes solar panels a better investment opportunity than ever before.
If you are interested in learning about solar panel installations and how they could be a great investment for your business, speak to the experienced team at Geo Green Power.
We have years of experience installing solar panels at both residential and commercial properties. We would be happy to provide you with any advice or guidance you need, or discuss a quote for your solar panel array.