Installing commercial solar panels for your business could see you make an annual saving of £1,500 or about $2,000 on electricity bills in your first year of installation. This comes with an increase in savings year on year through a Commercial Solar Power Purchase Agreement (PPA). Electricity savings when buying ownership outright are much more.
Paying for your electricity from the grid leaves you at the mercy of annually soaring energy costs, while energy harnessed from solar panels only increases at the rate of the Government-stated retail prices index (RPI) level. By this calculation, over a 20-year period, your business could retain £146,542 or $196,000 in electricity costs with a PPA.
To begin saving a similar amount, the time is now to install commercial solar panels. The further financial benefits of installing commercial solar panels at your business site will be laid out in this article to show that continuing to pay for fossil fuel energy from the electricity grid is a very unattractive prospect from the view of a business owner.
Commercial Private Purchase of Solar Panels
Privately purchasing solar panels for your business remains the most economic method of installing a green energy system. You’ll enjoy free electricity for the life of the system (at the point of use) and can see a return on investment of over 15%. Your annual savings on electricity as opposed to energy from the grid could be anywhere between £4,500 and £30,000 or $6,000 and $40,000.
Installations will be expertly designed by design engineers to suit your property and requirements.
If you own a commercial property which has a high energy usage, is situated in a shade-free area, and is utilized as a warehouse, factory, or public service, you’ll qualify for and benefit from the purchase and installment of commercial solar panels.
Free Solar Panels for Businesses Through a Commercial Solar Power Purchase Agreement
Investors in green technologies will provide your business with free solar panels and installation through the processes of a Commercial Solar Power Purchase Agreement (PPA).
The building owner enters into an agreement to purchase the energy produced by the panels owned by the investor. Nine out of 10 sites involved in this scheme pay less per each unit of energy than they did when paying from the grid and if they don’t make savings initially, they will later.
Free from Rising Energy Costs
This is why, as per government predictions, energy costs are rising by 5% each year. The reduced cost of green energy per unit produced by the solar panels only increases with the RPI level—an average of 3%.
With the average electricity grid supplier offering 12p per unit and solar panels providing an average of 9p per unit, the result is either a lower cost of electricity immediately. This is usually only after a minimum of a year as grid electricity costs annually climb faster and higher.
Solar Panel and System Ownership
A commercial PPA typically adheres to a 25-year lease period. Beyond this, there are two eventualities: the owner-investor may remove the panels or the system becomes the building owner’s property.
The PPA agreement is recommended for all types of commercial buildings though it would highly benefit hospitals, schools, industrial buildings or any service which cannot purchase the system outright.
For no purchase or installation costs, the benefit of saving hundreds of thousands while operating your business using green energy should be seriously considered. It’s feasible that the building owner will eventually own the solar panels and systems after the expiration of the leasehold period.
If the building is sold during the leasehold, the new owner will need to sign the PPA and in doing so, they benefit from the accumulated annual energy savings. If this deal can’t be made, the original signer will pay an exit fee stipulated at the commencement of the agreement.
How to Save Money and Reduce Your Business Footprint
Customer pressure for businesses to reduce their carbon emissions is growing and cutting ahead now is advisable. With the benefits of green energy increasing year on year, and the consumer base continually looking for new ways to reduce personal waste, marketing your business as one which runs on green energy is a smart move.
Not only will commercial solar panels and commitment to reducing your carbon emissions improve your consumer rating (and even gain you a new customer base), your panels will reduce or remove your business’s electricity bills for life.