How Do Commercial Solar Panels Affect Utility Bills?

At Eden Sustainable we’re passionate about the benefits of switching to renewable energy, but we know that for many clients the first (and often the most important) question is, ‘how much does it cost and how much money can I save?’.

In this short blog, we explore how a commercial solar installation can financially benefit your organisation with lower energy costs, whilst also contributing positively to the environment.

Save on electricity bills

The cost of the renewable energy produced by solar power is cheaper than the power that a client is able to purchase from their energy supplier.

There are two main ways in which clients benefit from cheaper power through solar PV systems:

1. Self Fund

Here the client purchases the system outright and we install the system, meaning that the client benefits from the power produced for the lifetime of the system (c.25-30 years). Depending upon the size of the system installed this can be as little as a few pence per kWh (reflecting maintenance costs) – meaning a saving of c. 24p per kWh. Typically, solar installations break-even in 5 to 7 years, meaning the system will be providing you with free energy for over 20 years!

2. Power Purchase Agreement (PPA)

Unlike in a self-fund arrangement, we fund the cost of the system outright at no cost to the client. Under a PPA the client leases their roof space to us and enters into a PPA whereby they purchase the power produced by the system for a set period of time (usually 25 years). The same principle applies to car parks for car port solar arrays or land for ground mount solar arrays.

Under a PPA the client will still make significant savings of c.10p per kWh, but critically the client does not have to make the initial capital outlay up front, which is why it’s often called a zero capital solution.

We’ve written more about how PPAs work in another blog, here:

How Solar PPAs Work

Known energy costs & energy security

Solar power, either self-funded or PPA, removes exposure to volatile energy prices which have also been steadily increasing for the last 30 years. This reduces your business risk and so can give you a commercial advantage.

Export of unused power

Many clients will not utilise all of the power produced by a solar PV system as to do so the building or site in question would have to operate 365 days per year and during all daylight hours. Accordingly, the self-consumption from solar PV systems fluctuates on a site by site basis.

We usually aim for at least 70 -80% ‘self-consumption’ by our clients, meaning that there is a balance of power produced which can be sold back into the grid for small profit per kW. This export income is only applicable where a client owns the system themselves, i.e. has proceeded with the self-funded option set out above.

The choice is yours

As expert solar developers, Eden Sustainable only ever offers its clients ‘investment grade’ solutions, meaning that we design the system so that clients can choose either a self-funded solution or a PPA solution (with price comparisons). As part of our design process, we optimise system sizes to match a client’s energy requirements and deliver solutions which maximum benefit to you, according to your specific requirements. Were we to oversize a system then we would struggle

Financial perks

1. 0% VAT on solar installations until March 2027.

2. Enhanced Capital Allowances let businesses deduct 100% of the cost, reducing corporation tax.

We have written more about this here.

Tax Benefits of Commercial Solar

Environmental benefits

Almost all of our clients have targets to reduce their carbon footprint or simply are keen to ‘do the right thing’. Solar PV systems will often provide strong brand enhancement as well as allowing our clients to both achieve their ESG and net zero goals, whilst seeing a significant return on investment. Going green is a win for your finances and a win for the environment.

Powering a more sustainable future.

Commercial solar panels in the UK offer big savings, income opportunities, quick returns, and green credentials. For many businesses, investing in solar is both financially intelligent and environmentally responsible.

If you’re thinking about making the switch to a more sustainable energy future, then contact us via our website and we’d love to help you unlock the benefits.