Benefits and Considerations of Solar PV for Business

Solar PV is on the increase within businesses as they understand the need to become more energy efficient and help with energy management. When deciding whether solar panels would be a good investment for your business, there are different considerations to be aware of.

These include where the solar panels will fit and how many you need, along with other aspects. This article will outline those considerations and what you need to know before you get started. 

What is Solar PV and how does it work? 

Solar panels or solar photovoltaic panels (PV) are made up of silicon cells that create electricity when light shines on them. Don’t worry that the UK has more grey skies than blue; the panels work even without direct sunlight hitting them. 

The panels generate direct current (DC) electricity, but as most businesses run off alternating current (AC) energy, an inverter will be installed that converts the energy to keep your business running as it should.

The benefits of Solar PV to businesses 

There are plenty of advantages to having solar panels installed for your business. Here are 5 reasons why a business might look to invest in solar. 

Reduced utility costs

Although it won’t amount to free energy, saving a few pence on each kWh will soon add up. There’s the opportunity to also speak to the grid to see if any excess energy can be sold back to them. 

Improved corporate social responsibility

Having solar panels will not always be visible to the public, but it is definitely something that can be used in promotional material, your ESG policy, and included in reports to investors and shareholders.

Tax relief

There are schemes that you may be eligible for that will enable you to get some sort of tax relief, including the Smart Export Guarantee (SEG). 

Reduced carbon footprint

Generating your own energy using a sustainable energy source like solar power will contribute to the reduction of your carbon footprint without much disruption to the wider environment.

No additional land use

Many businesses use their roof or, if they have space, will portion off a section of existing land they own. Other innovative ways include using the panels to create undercover car ports.

What should a business look at when considering Solar PV? 

Before you go ahead with your solar PV installation, there are certain preparations that need to be considered to make sure this is worthwhile for you. 

Identifying the location and space for the Solar PV

Doing a full survey and deciding where the panels are going to be installed is the first important step. There could be plenty of places to put solar panels, but the roof is the obvious choice for many businesses. If you have multiple facilities on one site, you may choose to only have solar panels installed on one of the buildings. It also gives you the opportunity to install solar PV on other buildings in the future.

In order to install solar panels, you must ensure that your roof has adequate space and that it is structurally sound so it can support the panels. 

Speak to suppliers to discuss how many panels you want, the size of the panels and how much space they’ll take up. Most typical systems for residential solar panels are around 20m2, so you’ll need to think about how much space will produce the amount of energy you’re expecting. 

Which way should your panels face? 

If the panels can face south, then you’ll be getting a healthy amount of energy produced as they will have the sunlight for most of the day. Putting the solar panels facing east or west, they’ll produce less but they will still support your self generation plans. North facing panels should be avoided, as there’ll be very little energy produced as the solar panels will get minimal direct sunlight. 

Do a survey of the area to check if there are tall trees surrounding the roof or if there are buildings nearby that overshadow your building, therefore blocking sunlight during the day. If there are obstacles that could block the panels, you’ll have to look at other areas to put them. 

What load profile should you be looking at? 

Another thing to consider is the load profile of your energy use. You may want to do a full analysis of the energy being used and when your peak times are. By doing this, you can plan how solar will help with supplying the business. You can then work out when grid energy use will be higher and when it will be the best time for solar energy to be used. 

Look into battery storage for storing and providing energy during low level sunlight periods or at night. This will be helpful for businesses, such as manufacturers that operate a night shift. Doing a full analysis will give you some indication of how much battery storage you want to have and when this will begin to take over some of the operation’s energy. 

Identify the acceptance process

As part of the planning process, you may need to check that there isn’t a need for any planning permission and, if there is, how long this will take and the processes to get it completed. You may also need to speak to your utility supplier to check their requirements and what you need to do to get connected – for example, if there are any additional electrical works that need to be undertaken. 

Be aware of timeframes and that these might change suddenly. Unfortunately, there is no average timeframe as the process will rely on different moving parts, but you should be able to estimate how long the work will take and when things can move on to the next part of the process. 

Look into the Smart Export Guarantee (SEG)

This is a scheme created by the government in 2020 that replaced the Feed-in-Tariff (FiT) which closed in March 2019. 

This scheme will pay those customers who generate renewable energy and put it back into the grid, offering competitive tariffs that support and reward those who sell electricity back to the National Grid. However, there is currently no specification for suppliers to have matching rates, each supplier can determine the rate offered along with contract length. 

The SEG is a good way of getting additional income from the energy that has been generated and is not used by your business. However, it is definitely something to make sure that the company looks into carefully to make sure that you get the very best deal for the energy produced. The exported power will be metered half-hourly and this will apply even if the tariff is not based on half-hourly rates. Your installations will also have to be checked to make sure they are certified to the Microgeneration Certification Scheme (MCS) standards. 

Summary 

Looking into solar PV can be a lengthy process, but there are ways that you can get support and guidance to have a successful installation. Renewable energy sources are a big topic at the moment, and businesses are increasingly looking at how they can maximise their energy efficiency. At Businesswise Solutions, we have experts that will be able to guide you through the process and help you maximise your sustainability and energy efficiency commitments.