Business Electricity

Commercial Solar Panel Electricity


solar panels

Renewable energy has seen an incredible rise in popularity over the past decade. 90% of the world’s countries are now signed up to the Paris Agreement – a global agreement to combat climate change, by intensifying the efforts and actions needed for a low-carbon future. This has caused a huge increase in policies aimed at reducing emissions and dependency on imported energy. This includes government subsidies for home and business owners who promote and use renewable energy.

Commercial solar panels for business are just one option, granting businesses the chance to access favourable incentives when producing their own energy. In many cases, businesses can even sell back excess energy to their supplier. One of the quickest and easiest options to access these incentives is investing in solar for business.

What are the benefits of solar for businesses?

Commercial solar panel electricity offers a range of benefits for businesses. One major benefit is improved reputation. Now the environment is such a huge concern, the demand for green services has seen an exponential rise. Customers are incredibly aware of how they impact the world’s eco-system and are increasingly looking to businesses with an environmental conscience.
By going green, you are able to:

  • Attract customers away from your non-green competitors.
  • Create positive PR opportunities.
  • Add an attractive, environmental focus to your marketing campaigns.

What are the environmental benefits of commercial solar power?

Environmental impact is one of the biggest concerns for any business owners considering going green. Choosing solar panels for your business premises is one of the most simple and cost-effective ways to reduce the damage you do to the environment. First and foremost, it allows you to reduce your carbon footprint. By producing your own electricity, you reduce the need for business energy created via non-sustainable methods. But it’s worth considering the wider picture too. By choosing commercial solar power, you also:

  • Promote commercial solar PV to other businesses.
  • Reduce your area’s dependence on imported energy and finite resources.
  • Prepare for the future, ensuring growth and economic wellbeing.

Does commercial solar energy offer any financial benefits?

For any business, energy bills have a real impact on overall earnings. This is even more true for those of a smaller nature, dealing with lesser margins of profit and income. So, any way to reduce your overall bills is worth considering.

Solar PV energy for business is one of the best ways to cut costs. Sure, there’s an initial outlay which may look expensive. However, the mid-to-long-term benefits more than outweigh any commercial solar panel cost.

By producing your own business electricity, you’ll see reductions in your electricity bill almost instantly. The average cost of producing commercial solar PV energy is 5p per kWh. Currently, businesses pay between 11p and 15p for the same amount of energy from their suppliers. So, even on current prices, investing in commercial solar panels is worthwhile. Add in the fact that energy bills are set to double in the next ten years, and you can see how solar panels could save your business from increased fees for energy.

Your first concern with commercial solar PV will likely be seeing a return on your investment. But it’s worth looking further down the line. Once you have recovered the initial cost, all your savings can then be redirected to other areas of your business, helping you to grow and expand.

By taking control of your energy usage, you’ll likely also start to look at ways to improve your energy efficiency – cutting costs even further. This can be achieved in a number of ways, from installing extra insulation to using energy efficient equipment like LED and CFL bulbs.

Finally, you’ll need to be aware of Feed-In Tariffs (FIT). These are a government subsidy designed to promote the use of renewable energy. Businesses who produce an excess amount of renewable energy can use FIT’s to sell their energy back to the national grid.

Put most simply, solar panels for commercial buildings provide businesses with the chance to save and make money, promote themselves as a green and socially conscious business, and avoid becoming victim to any future price rises in the energy market.

What is the average solar panel commercial cost?

As there are different systems and system-sizes for producing solar energy, there’s no set price. A small-scale solar photovoltaic system will cost somewhere between £5,000 and £10,000, usually taking between six and ten years to pay back. Solar thermal energy is a little cheaper, costing between £3,000 and £5,000, which will be paid back in around five years.

Solar Energy System Cost Time to Pay for Itself
Small Scale PV System £5,000 – £10,000 6 – 10 years
Solar Thermal Energy £3,000 – £5,000 3 – 5 years

Before finding the best solar panel companies and investing in commercial solar energy, you need to check whether you need solar PV planning permission. It’s also worth finding out if you are eligible for free solar panels for businesses – but be aware, these usually exclude you from Feed-In Tariffs. Either way, there are plenty of other funding options available. Here’s a quick guide to the most popular, including FIT.


  • Feed-In Tariffs (FIT) Scheme – Businesses that generate electricity from a renewable or low-carbon source can sell any excess energy they produce back to their supplier at a set price. Unfortunately, the FIT scheme closed for new applications on March 31, 2019, but you may still be eligible for payments. For more information, check out our Business Energy Feed-in Tariffs page.

  • Renewable Heat Incentive – Almost all renewable energy technologies are covered under this incentive, which provides financial support for businesses looking to install their own renewable heat system.

  • Enhanced Capital Allowances – Providing the equipment you invest in is eligible, you can write off the cost against your taxable profit with a 100% first-year capital allowance.

  • The Green Deal – With this deal, you won’t have to shell out any extra funds for installing and implementing your energy-saving technology. Instead, you’ll pay from the savings you make.

  • Salix Finance – Funded by the government, this scheme provides public sector organisations with interest-free loans to carry out improvements for energy efficiency.

  • Power Purchase Agreement – This allows private funders to buy energy you generate at a set price. They’ll also own your renewable energy system and claim subsidy rewards, while you benefit from producing your own energy.

  • Lease Purchase Agreement – You receive the technology as part of a lease, paying in instalments via what you earn from government subsidies. Once fully paid, the system is yours.

  • Business Loan – You’ll pay back your loan over a set amount of time and own, in full, your sustainable energy system. Business loans often feature better rates and terms than a lease provider, so it’s worth doing your research before signing up to an agreement.

  • Client Funded – This is where you pay in full for your system as it’s installed. This may be the most expensive option in the short-term, however, you’ll be able to claim all government subsidy rewards for the maximum 20 years.
  • The simplest way to cut your business electrcity bills is to switch to a better deal. To see how much you could save, give our commercial energy experts a call us on 0800 088 6986 today.

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