Commercial Solar Panels Cost
Many UK firms want to cut energy costs. They look at solar panels but worry about the price. How much do commercial solar panels cost? This is a key question for business owners.
The average cost of commercial solar panels in the UK ranges from £16,000 to £60,000. This price is for systems between 20kW and 50kW. These systems suit small to medium-sized businesses.
Our guide will break down these costs. We’ll show you how to save money with solar power. Read on to learn more about solar panel costs for your business.
Key Takeaways
- Commercial solar panels in the UK cost £16,000 to £60,000 for 20kW to 50kW systems.
- A 10kW system costs £13,000 to £15,000 and breaks even in 5-6 years. Larger systems offer better value.
- Hardware makes up 20% of total costs, labour 30%, and permits add to the final price.
- The Smart Export Guarantee lets firms sell extra solar power to the grid at 5p to 15p per kWh.
- UK grants and tax breaks, like 0% VAT on solar panels, help businesses save money when going solar.
Overview Of Commercial Solar Panels Costs
Commercial solar panels can save money in the long run. The costs vary based on size, type, and location.
Average Costs Of Commercial Solar Panels
Commercial solar panel costs vary based on system size. A 10kW system ranges from £13,000 to £15,000, with a break-even point of 5-6 years. Larger systems offer better value. A 50kW system costs £33,000 to £60,000, breaking even in 3-6 years.
Prices drop for bigger installations. A 100kW system ranges from £60,000 to £120,000. It has the fastest payback period of 2-5 years. These costs include panels, inverters, and mounting hardware.
Labour and permits add to the total price.
System size affects energy output and savings. Larger systems produce more power, cutting energy bills faster. They also qualify for better tax incentives. Businesses must balance upfront costs with long-term benefits when choosing a system size.
Key Cost Factors: Hardware, Labour, And Permits
Hardware costs make up 20% of the total expense for commercial solar panels. This includes solar panels, inverters, batteries, and mounting systems. Inverters convert 15% of the budget, while batteries account for 20%.
Mounting systems take 10%, and monitoring systems use 5%.
Labour costs are the biggest chunk at 30% of the total price. These cover the wages for skilled workers who install and set up the solar system. Permits and paperwork also add to the final cost.
They ensure the project meets local rules and safety standards.
The type of panels used affects the overall price. Monocrystalline panels are pricier but more efficient. Polycrystalline panels cost less but don’t work as well. The size of the system and roof complexity can change labour costs.
Bigger projects or tricky roofs need more time and effort to install.
Breakdown Of Installation Costs
Solar panel costs make up a big chunk of your total bill. But don’t forget about inverters, wiring, and mounting systems – they’re key parts too.
Solar Panel Costs
Solar panels for businesses cost £10,000 to £100,000+. A 4kW system, enough for a small shop, runs about £5,000-£6,000 with installation. Larger firms need bigger setups, which can hit several hundred thousand pounds.
Prices vary based on panel quality, system size, and install complexity.
Panel costs make up 30-40% of total project expense. Top brands charge more but offer better efficiency and durability. Cheap panels save money upfront but may need replacing sooner.
Smart businesses balance initial outlay against long-term value when choosing commercial solar equipment.
Inverter And Wiring Costs
Inverters play a key role in solar panel systems. They turn the DC power from panels into AC power for use. String inverters cost £500 to £1,500 and last about 10 years. Microinverters cost £20 to £100 per unit.
For 14 panels, expect to pay around £2,500 total.
Wiring costs vary based on system size and layout. Larger systems need more wires and labour time. Power optimisers can boost system output but raise initial costs. Over time, they may pay off through better energy production.
The total inverter costs range from £1,000 to £3,000 for the life of the system.
Proper wiring ensures safe, efficient power flow. It’s vital to use high-quality cables and connectors. This helps prevent energy loss and fire risks. Expert installers can design the best wiring setup for each unique commercial site.
Mounting System Costs
Mounting systems make up about 10% of the total cost to install commercial solar panels. These systems come in three main types: roof-mounted, ground-mounted, and tracking systems.
Each type has its own price range. Roof-mounted systems are often the cheapest option. Ground-mounted systems cost more but work well for large areas. Tracking systems are the priciest but can boost energy output by following the sun.
Floating mounting systems offer a unique choice for water bodies. They keep the water cooler, which helps local wildlife. These systems also make the solar panels work better. The cool water helps the panels produce more power.
While floating systems cost more upfront, they can save money over time through higher efficiency.
Additional Costs To Consider
Solar panel costs don’t end at installation. You must plan for upkeep and protection to keep your system running well.
Maintenance And Repairs
Commercial solar panels need little upkeep. A pro check every 4-6 years keeps them in top shape. Annual cleaning costs about £9.50 per panel. Modern systems spot issues fast, saving money.
Inverters last long but may need replacing after 25 years, costing around £900. These low costs make solar a smart choice for businesses.
Regular care extends panel life and boosts output. Clean panels catch more sun, making more power. Quick fixes prevent big problems later. Smart tech helps track performance daily.
This means fewer surprises and steady energy production for your company.
Insurance And Warranty
Solar panel insurance shields your investment. It covers damage from storms, theft, or accidents. Most business property policies include this cover. But you can buy stand-alone solar panel insurance too.
Warranties protect against defects. Solar panel makers offer 20-30 year warranties. These cover faults in materials and workmanship. Inverter warranties last 5-15 years. They ensure your system keeps working well.
Good insurance and warranties boost your peace of mind. They help you avoid big repair costs. Check policy details carefully. Make sure you understand what’s covered. This way, you’ll get the most from your solar panel system.
Financing Options For Commercial Solar Panels
Financial considerations are important for solar panel installations. Assistance is available to offset the costs.
Grants And Incentives
The UK offers several grants for commercial solar panels. The Net Zero scheme in Tees Valley provides a £2,000 grant until March 2025. Low Carbon Workspaces offers £5,000 for businesses in specific areas.
In Dorset, grants cover up to 50% of costs, ranging from £1,000 to £75,000. These incentives make solar energy more affordable for companies.
Tax breaks also boost solar adoption. The government cut VAT to 0% on solar panels and green tech. Capital allowances give extra tax perks. These measures help businesses save money while going green.
Solar panels now offer both environmental and financial benefits for UK firms.
Smart Export Guarantee
The Smart Export Guarantee (SEG) began in January 2020. It allows UK firms to sell excess solar power back to the grid. SEG rates in 2025 will range from 5p to 15p per kWh. To participate, businesses need a smart meter.
Energy suppliers set their own buy-back rates, but they must be above zero.
SEG provides an opportunity for companies to earn from their solar panels. It’s beneficial for all parties – firms reduce energy costs and generate income from surplus power. This scheme supports the UK’s transition towards greener energy use.
More businesses might now consider solar as a wise investment.
Benefits Of Investing In Commercial Solar Panels
Commercial solar panels offer more than just lower energy bills. They boost your green credentials and can increase property value, making them a smart long-term investment.
Reduced Utility Bills
Solar panels slash energy costs for businesses. A medium-sized 30 kWp system can save £5,000 yearly on power bills. This cut in expenses boosts profits and frees up cash for other needs.
Firms gain more control over their energy use with solar. They rely less on the grid and avoid price hikes. Plus, extra power can be sold back, speeding up return on investment. The Smart Export Guarantee scheme pays for this surplus energy.
Solar tech keeps improving, offering better savings. Modern panels are more efficient and last longer. This means lower bills for 25+ years. Businesses also protect themselves from future energy price rises.
Tax Relief And Financial Savings
Tax relief offers big savings for UK businesses installing solar panels. The Annual Investment Allowance lets firms write off the full cost against Corporation Tax. Plus, the Net Zero Strategy gives tax rebates to companies that go solar.
Firms can also claim a 50% deduction through the First Year Allowance.
Solar panels cut energy bills too. A typical 25kW system saves about £3,000 yearly on electricity costs. These financial perks make solar a smart choice for businesses aiming to reduce expenses and boost profits.
The combo of tax breaks and lower bills creates a strong case for commercial solar investment.
Conclusion
Commercial solar panels offer a smart investment for UK businesses. They cut energy costs and boost eco-friendliness. The average system pays for itself in 4-5 years. Government incentives make now an ideal time to switch.
Tesco’s large-scale solar project shows the growing trend. Take action today to slash bills and shrink your carbon footprint.
FAQs
1. How much do commercial solar panels cost in the UK?
The cost of commercial solar panels varies. It depends on the size of your building, energy needs, and type of panels. Monocrystalline solar panels are pricier but more efficient. Costs range from £16,000 to £70,000 for most businesses.
2. What benefits do solar panels bring to companies?
Solar panels cut energy bills and carbon footprints. They offer long-term cost savings and show corporate social responsibility. Many businesses across the UK enjoy lower electric costs and government incentives. Plus, they help meet net zero emission goals.
3. How long do commercial solar panels last?
Commercial solar panels typically last 25-30 years. They’re durable and need little upkeep. Regular cleaning of dust and debris helps. With proper care, panels can work well beyond their expected lifespan.
4. Can small businesses benefit from solar energy?
Yes! Small businesses can switch to solar too. It cuts power costs and boosts green credentials. The UK government offers grants and feed-in tariffs. This makes solar more affordable for smaller firms.
5. What affects the cost of a commercial solar installation?
Several things influence the cost. These include roof size, panel type, and system size. The ease of installation matters too. So does your location in the UK. Prices may differ in England, Scotland, or Wales.
6. How do I know if solar panels suit my business?
Check your energy use and roof space first. Then, talk to solar panel installers. They’ll assess if your building is right for solar. They can also explain costs, savings, and payback times. This helps you decide if solar’s a good fit.