9 Benefits of Solar Power for Business
Tightening greenhouse gas regulations are not the only reason why business owners should seriously consider going solar. Regardless of industry or size – the benefits of solar power for business make it a great investment choice for all businesses.
In this article, we cover all cover all aspects of solar power for business. Learn about costs and benefits, available government grants and business models based on solar power.
Solar power significantly reduces energy bills for businesses. In addition, the equipment requires minimum maintenance. Using solar power will also significantly reduce your carbon footprint and give you a greener corporate image.
The average price per kilowatt hour in Europe is 0,05 € (0,059 £) for solar power. Taking into account all expenses for equipment and installation, this is a reduction of over 70% in electricity cost.
Most countries offer financial incentives to help businesses with their solar power projects. Plus, some individual countries in the EU have their own incentive programmes called Feed In Tariffs (FITs).
What are the Benefits of Solar Power for my Business?
Solar power is beginning to replace fossil fuels as a means of generating electricity. In fact, it is also the most abundant renewable energy source. Furthermore, the sun is a natural renewable energy system that runs completely without human operators. While some benefits of solar power are convenient to private individuals, they will be invaluable to some businesses in the future.
Advantages of Solar Power for Business
- Unlimited supply
- Lower electric bill
- Low operation expenses
- Government grants
- Greener corporate image
- Energy independence
- Reduces carbon emissions
- Energy saving
Solar power is completely free. Therefore, it is only a matter of time until the savings offset the original cost of the solar equipment.
Furthermore, solar power for small businesses can generate a profitable side income. PV plants generate energy exactly when electricity prices are peaking (11 a.m. to 4 p.m.). As a consequence, you can produce and sell excess solar power to the grid at the highest price.
Solar power for business premises is also clear sign of a company’s environmental commitment. Considering the growing awareness for the climate, customers are choosing greener companies by voting with their wallets. Therefore, solar power is a great way for businesses to showcase their social responsibility. This can make all the difference when attracting increasingly choosy customers and investors.
Solar Power for Business Cost
Generally, a commercial rooftop system currently costs 800 to 1,000 euros per kW to be installed, depending on the size. The electricity generated by solar power plants then costs between 6 and 7 cents/kWh for operation over 20 years. These costs include expenses for possible repairs. Ultimately, however, prices vary depending type and system size.
Most businesses have a constant electricity demand between 8 a.m. to 6 p.m. This coincides with the time of day when solar panels are able to produce energy. Therefore, companies can achieve self-consumption rates of 70% or more, yielding an even higher ROI.
Adding solar battery storage opens up the possibility to export surplus power to the grid. This way, energy costs can be completely offset or even turned into a profit.
With an expected lifetime of 30 years, solar power systems have an EROI of around 10 to 30. This means they generate enough energy in 30 years to reproduce many times (6-31 replications).
Calculate the amount of potential savings with our solar power systems calculator.
Government Grants for Solar Power Business
Due to steadily decreasing costs of solar energy solutions, the availability of solar power grants has also decreased overall throughout Europe. However, different types of grant schemes and funding opportunities are still available at both European and national level.
EU Solar Power Business Grants
National Grant Schemes
Governments on the national, provincial and town level offer various options for subsidising commercial solar PV systems. For example, there are grants to fund the purchase of solar panels for businesses by up to 10%. Furthermore, subsidies exist to fund solar panel installation for businesses. In general, before installing solar panels for your business, you should find out about the following subsidy options in advance:
- Low-Interest Loans
- Statutory Feed-in Tariff for Commercial Solar Installations
- Regional Subsidy Programmes
- Grants from Energy Suppliers
Before buying commercial solar panels for your business, all funding options should be considered. However, reading through numerous subsidy programmes for solar energy is a tedious effort.
We provide an overview of available incentives for your business. In addition, you receive advice on the most economic approach for your project.
Schedule an appointment for a free and non-commital consultation or request information through our solar power grant inquiry form.
UK Government Grants
Since the UK left the EU, the country has gone its own way regarding financial incentives for commercial solar panel systems.
- VAT Reduction
- Power Purchase Agreements (PPA)
- Green Business Grants
- Coventry and Warwickshire Green Business Programme
- Smart Export Guarantee (SEG)
Power purchase agreements (PPAs) are an effective method to finance solar panel system for business. If your energy usage and roof space meet specific criteria, your installation costs will be financed by a PPA provider. Green business grants offer up to £15,000 to subsidize solar heat pumps and solar power for small business.
Funding of up to 40% of installation costs is available through the Coventry and Warwickshire Green Business Program. Eligible businesses must be located in Coventry or Warwickshire and have less than 250 employees.
Smart Export Guarantee SEG
As opposed to FITs, homeowners in the UK profit from a new legislation called Smart Export Guarantee (SEG). As a result, UK energy suppliers are required to pay households and businesses for exporting solar power to the grid. Exports will be measured by smart meters, which are installed by the respective electricity provider.
Please use the contact form below to inquire about the financial incentives that are available for your business.
Solar Power for Business Grants - Government Grant Inquiry
Business Model for Solar Power Plant
There are several viable concepts to run a profitable solar energy business. However, key to all solar energy business models is that the strategy must designed for the long term. Solar energy requires large investments, and the benefits are spread over a long period of time. This is crucial, as you need to find ways to integrate installation, ownership, operation and financing into a profitable business.
Solar Power Suppliers
Suppliers quote turnkey solar power systems and individual components for replacement or a custom setup. Those with significant financial resources often provide additional financing options to cover the high initial costs. Their main market are homeowners and businesses who want to go solar. From time to time, public institutions are among their customers as well.
Solar Power Systems - Wholesale Supply
We offer the whole range of individual solar devices for wholesale purchasing as well complete solar power solutions.
Solar Power System Installation & Maintenance Service
Solar power installers take care of the whole installation process and provide maintenance services if required. Usually, they also provide assistance in regulatory matters suc as acquiring the planning permission and grant application. Many businesses combine supply & installation, wich is one of the most profitable solar power business models.
Commercial Solar Farms
A solar farm is one of the most sophisticated business models for solar energy. This requires a contract with the local utility to sell electricity and feed it into the grid. Following that, the business installs a large number of solar panels in a location with high sunlight exposure.
The operating business is in full control of the solar power plant. Furthermore, it is not bound by existing roof lines. Thus, PV modules can be installed at optimal angles and in a direction that maximizes solar radiation. Large urban areas and industrial zones are the most profitable locations for this approach because of their high power demand.
Commercial solar farms tend to be huge installations with capacities of several Megawatts. Therefore, they require particularly powerful devices and PV modules.
Start Your Solar Power Business Today
We have long-standing and in-depth experience with a broad range solar power business models.
We understand that quality and price are the most important factors in your decision making. Therefore, we only develop solutions where every step is known and planned in advance.
Get in touch with us or schedule an appointment for a free and preliminary online consultation.