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What is Commercial Solar Panels? 

Businesses across the UK – including factories, offices and education facilities – are increasingly realising the benefits of installing a Commercial Solar PV system to earn a significant tax-free income, make substantial savings on energy bills and improve green credentials.

A Commercial Solar system consists of Solar Panels which convert the sun’s light into electricity using Photovoltaic (PV) cells. Businesses can then take advantage of this generated energy by using it for free to power lighting, technology and machinery.

What are the benefits of Commercial Solar Power?

Commercial Solar Panels represent a secure, risk free and extremely profitable opportunity for Businesses of all sizes, with a Return on Investment typically around 12.7%.

Through the Government’s Feed-in Tariff (FIT) scheme, Businesses will receive guaranteed payments for each unit of energy that the Solar PV Panels produce for the next 20 years, providing a lucrative tax-free income.

The Feed-in Tariff gives Businesses three ways to earn and save money, through the Generation Tariff, Export Tariff and Bill Savings:

The Generation Tariff pays for each unit, or kWh, of electricity that is used. These payments are secure, tax-free and last for 20 years from installation.

The Export Tariff pays for each unit of electricity that is not used and is exported back to the national grid. Most utility companies will assume that 50% of the energy generated is exported.

Substantial Bill Savings are also to be had, as the Green Energy produced by the Commercial Solar Panels can be used to power lighting, technology and machinery for free, reducing the need to buy the energy from the grid. As Businesses use up to 100% of the electricity generated, the Bill Savings are typically larger than those for domestic Solar Panels.

How much does a Commercial Solar PV system cost?

Commercial Solar systems tend to range between 4kWp and 50kWp in size, although it is possible to install systems up to 5MW. Prices vary depending on system size, but typically cost between £5,500 for a 4kWp system and up to £80,000 for a 50kWp system.

Through Feed-in Tariff payments, Businesses can expect to recover the cost of installation in around 7 years and get a profitable Return on Investment of around 12.7%.

For example, a large Business with 240 square meters of roof space available may opt for a 30kWp Commercial Solar PV system, which would cost an estimated £60,000 to install. Through the Feed-in Tariff payments, the Business could expect to recuperate the initial outlay in Commercial Solar earnings and savings, recovering the cost of installation within 11 years and giving a huge return in income and savings over the 20 year FIT period.

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