If your business premises has a flat or south-facing roof that isn’t shaded, you have the opportunity to generate a substantial percentage of your own energy needs.
Solar panels and associated battery storage are well established, reliable technologies that can slash your energy costs along with your carbon footprint. You could use some of the energy you generate to charge a fleet of electric vehicles. And you may be eligible for grants towards the cost of installing chargers (Government funding changes at the end of March 2025 – so watch this space).
Solar PV will also help meet Minimum Energy Efficiency Standards (MEES) requirements alongside other investments such as an intelligent LED lighting installation.
Capital Costs
You probably already know this. But maybe you’ve held back from enquiring about a solar PV installation because of the up-front capital cost.
That’s understandable. A large solar array and storage installation is a large investment. The good news is that there are several ways to reduce or spread the cost.
Financing is one option. Effectively this moves the cost from your capital to your operating budget. If solar is the right option for your business then the annual savings will more than offset the finance costs. At the end of the finance period you’ll own the panels outright and enjoy 100% of the benefit.
Corporation Tax Capital Allowances
If your business has a healthy cash position, paying for the installation up-front may be the cheapest option overall and will give you the fastest financial return on your energy costs.
Solar power installations are eligible for capital allowances that reduce your corporation tax liability. Under the special rate pool allowances you can claim an allowance equal to 50% of the cost in the first year and gradually write down the residual amount in subsequent years. To qualify, the panels must be new.
Grants
It’s worth keeping an eye open for grants that can be accessed through your local authority under schemes such as the UK Shared Prosperity Fund. Grant funding tends to vary by location and time so there’s no point trying to be too specific here. All you need to know is that Source Electrical is always on the lookout for grant funding opportunities and will help you apply where relevant.
So if you’ve thought about switching your business to green energy but are unsure about the costs and benefits, give Source Electrical a call.