With the typical payback period of installing commercial solar being 3 years, UK businesses are increasingly turning to solar panels. Not only can they reduce their carbon footprint, but most favourably they can enhance their bottom line through a fantastic return on investment (ROI).
What are the Financial Benefits of Commercial Solar?
The primary reason UK businesses are considering solar panel installations is the potential for substantial long term financial savings. The UK government’s commitment to renewable energy is evident in the various incentives and schemes designed to encourage solar adoption.
Tax Relief Schemes
Annual Investment Allowance (AIA), Super Tax First Year Allowance (FYA), and Smart Export Guarantee (SEG) are prime examples of these initiatives. These schemes enable businesses to receive tax relief as well as being paid for exporting excess energy to the grid.
If you’re interested in tax relief schemes available for your business, we wrote a great guide breaking these down. Check it out over here.
Energy Prices
As fossil fuel prices continue to fluctuate, solar panels provide a stable and predictable source of energy. First and foremost by insulating businesses from potential price shocks. With advancements in solar technology, the efficiency and longevity of panels have improved in recent years. Contributing to more consistent energy production and longer operational lifespans, amplifying the financial benefits.
Your business could save huge amounts in energy costs. Businesses that have large energy usage can see savings in the tens or hundreds of thousands in a few short years. In addition, businesses can see the return of the initial costs of installing solar panels within 3 years.
How to Calculate the ROI of Commercial Solar
To accurately assess the ROI of installing commercial solar panels for a UK business, several factors must be considered. These include the initial installation costs, energy production estimates, applicable government incentives, and potential savings from reduced energy bills.
The combination of revenue from government schemes, reduced energy expenses, and potential income from exporting excess energy can lead to a positive ROI within a few short years.
Online Calculator for Commercial Solar ROI
You can use our online calculator to estimate how quickly you can see a ROI from installing commercial solar panels.
As the UK moves towards a future with net-zero emissions, businesses that invest in solar panels can future-proof their operations. In addition to actively contributing to a greener and more sustainable economy.
Find out more here about how solar panels might be the right choice for your business. Or you can contact us today for a free survey of your business.
We offer a full design and installation service for commercial solar systems across the UK. Our team brings over a decade of experience and work with reputable partners and innovators in the sector to deliver cutting edge systems while maximising return on investment.
Give us a call on 01422 414850, or fill out a contact form here.
