How your business can benefit from solar power
Every successful business looks for a competitive edge. Solar power can help. A solar PV (photovoltaic) or solar thermal system can cut your long-term fuel costs and boost your company’s green energy credentials.
Solar power: capital and operational expenditure
Buying a solar energy system for your business is a capital expense. However, you reduce operational overheads by no longer having to pay an electricity supplier.
You can keep capital expenditure to a minimum with a grant or an interest-free loan. And you can offset capital costs with regular payments from the government’s feed-in tariff (FIT) scheme or the renewable heat incentive (RHI) scheme. See below for more details.
Solar system maintenance
Maintenance of business premises and equipment can be a drain on your resources. Solar energy systems are virtually maintenance-free. They also carry warranties of up to 25 years depending on the make of the panels and thermal units.
Return on investment
You expect a return on any business investment. A solar PV or heating system is no different.
Your return on investment relies on factors such as initial cost, grants, loans and incentives. What you should also bear in mind is the longevity of solar power systems. Solar panels or thermal heaters should last for 25 to 40 years.
When you build these factors into your ROI calculation, current industry research shows you could receive a 6% – 10% return.
Solar energy grants
When you begin researching your investment in solar energy, check for any available grants. Your local council may be able to help. Companies such as Shell also run renewable energy grant programmes. Your proposed solar project may well qualify.
Loans
The Carbon Trust sometimes awards interest-free loans to buy solar panels and solar heating. The Carbon Trust also offers free advice on leasing and hire purchase arrangements, and can help you with an investment or business case appraisal.
Other funding initiatives
If you install a solar PV system for your business, you can take advantage of the tax-free feed-in tariff scheme. This is not as generous as it once was, but you can still receive money for the solar electricity you produce. The government also gives additional payments for excess solar electricity you send to the national grid.
When you install solar thermal collectors for heat generation, you can join the renewable heat incentive scheme. If you have a system producing less than 200 kWth (kilowatt thermals), the government pays you a tax-free tariff income per kWh (kilowatt hour).
Solar tax allowances
Every business welcomes a tax allowance. The UK’s Enhanced Capital Allowance (ECA) scheme has a provision for energy saving initiatives. These include certain solar energy equipment.
Under the scheme, you can write off 100% of the equipment against the taxable profits made during the year of installation. To check what equipment qualifies, see the government’s Energy Technology List (ETL).
The PR benefits of energy-saving
Using solar electricity and heating allows you to promote your company’s commitment to green energy and the environment. This can be a significant PR boost.
Furthermore, if the European Union’s Emissions Trading System (EU ETS) affects your company, or you are part of the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, solar power helps you meet energy saving targets.
The right solar power supplier
To ensure your business has the right solar equipment to meet its needs, you require an experienced, knowledgeable supplier. Eco2Solar has worked with business around the UK. It has expertise you can rely on. Moreover, Eco2Solar has external accreditation in the form of the Microgeneration Certificate Scheme (MCS). This confirms Eco2Solar’s position as a leading green energy installation company.
To discover more about the way your business can benefit from solar panels or a solar thermal system, contact Eco2Solar today.