ESG Metric: GHG Scope 1 emissions
Ease of implementation: Hard
Suitable for: All businesses
Suggested functional lead: Logistics department, facility manager
Summary
Installing solar panels on or by your facility will reduce your utility costs, reduce your carbon footprint and promote your business as a green pioneer. We suggest installing Solar PV panels by getting a quote from a supplier and setting a feasible budget for the installation. Prior to booking the installation, it is good practice to research the desired size of the polar PV system and whether battery storage is required for optimal usage. Investigate whether you are eligible for a grant in your area and book your installation. Post-installation, ensure regular inspections are scheduled for optimum energy generation and thus, emissions reduction.
Background Information
Solar energy is renewable energy source either generating heat (Solar Thermal) and /or electricity (Solar PV). Solar Thermal plates are made up of vacuumed tubes containing water and harnesses heat from the sun. It is, however, mainly used to produce domestic hot water, thus, making Solar PV a more attractive option for business. Solar PV systems are made up of semi-conduction materials, usually silicon, which are layered into cells. When the light shines onto the cell, it converts the light into electrical energy. Whilst most efficient with higher light intensity, the panels do not require direct sunlight and can generate electricity on cloudy winter days as well. This can be an effective low carbon method to generate your own electricity and decrease your carbon footprint. Most SMEs will consume approximately 30,000-50,000 kilowatts per hour of electricity annually. Thus, compared to the electricity from the UK national grid, each kilowatt per hour of electricity produced by Solar PV saves an average of 0.23kg of CO2.
Implementation Steps
Initial identification of solar PV panel size and system
Commercial solar panels can vary in scale depending on the business size. Prior to getting in touch with a professional, we recommend assessing the amount of solar power needed to cover as much of your business’ energy usage. The scale depends on the nature of the business, where an industrial facility will require more energy than a law firm. SMEs will have a smaller system than large office blocks. You can roughly calculate the size of system your business might require by identifying your energy consumption, local daylight hours and size of your roof or available land. A professional supplier will be able to accurately assess the size when requesting a quote later on.
Investigate if battery storage options are necessary
Battery storage is crucial if you operate your business after dark. It means you can harness the daylight energy and discharge electricity at specific times, still operating independently from the grid. If battery storage is necessary, ensure you mention this when getting a quote from the supplier. They can also be installed as a stand-alone product by companies such as Solarsense UK. For more information click here.
Investigate planning permission requirements
If you are planning to install a system larger than 9m2, you will require planning permission. If the installation is projected to be smaller, this will not be necessary subject to the following conditions: the system is less than 4 metres high, no more than 5 metres from property boundary and will not be visible from a highway if located in a conservation area or heritage site. Find more information here.
Get a quote
If solar panels are a viable option for your business, get in touch with a professional supplier regarding a specific quote and installation time. They will outline costs, size, and any additional work required. Find a local supplier and get a quote here.
Perform cost analysis
Once the quote has been generated, collaborate with the finance department to identify the feasibility of the project. Determine the potential budget for installation and potential grant options. You may not be able to cover the full roof or desired area with solar panels due to budgetary restraints. On average, installations will cost:
System Size in kilowatt peak (kWp) | Cost |
10 | £16,000 |
25 | £39,000 |
50 | £78,000 |
100 | £156,000 |
6. Apply for grant
In the UK, there are region-specific grants for businesses to install solar panels. For example, Low Carbon Workspace provides grants for the midlands up to £5,000. Other regions offer higher grants such as Lower Carbon Dorset which covers up to 40% of the project installation, granting between £5,000 and £250,000. To find more and apply for grants click here.
7. Book the installation
After getting a quote with the supplier and assessing the finances of the project, book in the installation.
8. Book continual inspections
Solar systems require inspections every few months for debris. Ensure the inspections are booked in with the installing supplier and keep track of inspection outcomes.
Alternative Options: Power Purchasing Agreement (PPA)
If you cannot or would not like to own your own solar system, you can rent your roof and purchase solar power at a discounted price. Power Purchasing Agreement (PPA) are financial agreements allowing businesses to purchase solar electricity and still get the advantages of costs saving, but avoid upfront costs. You can purchase the system in the future if you would like. Usually, PPAs will actually give the business the solar power system after 25 years with no extra charge as they have a lifespan or 25-50 years.
Costs
Once installed, maintenance costs are low as long as they are kept clear or large debris. This means costs are actually saved as energy will be generated on site. On average, a 30 kilowatts peak solar power system will reduce electricity bills by over £5,000 annually.
In terms of exporting the energy generated, your business could make money off of the installation. The Smart Export Guarantee (SEG) has replaced the Feed in Tariff in the UK to get paid for exporting excess energy generated back into the grid. There is however a limit to how much energy you can export. Businesses are allowed to sell a maximum of 5 megawatts, with an average of 3.5-7.5 pence per kilowatt hour. This would mean you can make up to £250 per year assuming an average tariff of 5 pence per kilowatt hour.