Is solar PV still a worthwhile investment in the UK?

The popularity of solar PV in the UK has oscillated over the years. Solar panels have a reputation for being expensive, with scepticism regarding their effectiveness in a country like the UK, where sunny days are few and far between. In addition to this, with the end of the Feed-in-Tariff, many people assume that financial incentives for solar PV are a thing of the past.?

However, as energy prices continue to soar, interest in solar PV is on the rise again. Is it a worthwhile investment for your business? Well, that depends on a few things. Do you have empty roof space, would like to reduce your energy bills and do you have some money to invest? If yes to all three, then it’s probably worth looking into the options.?

What are the benefits?

Other than reducing your energy bills, installing solar PV can also help reduce your reliance on the grid – helping keep your business running during outages. The UK government has committed to net-zero by 2050, and as a result, has introduced an array of environmental taxes and audits to drive down business energy consumption. Generating your own energy from solar PV will help reduce how much of these you are obligated to pay.?

Is there enough sun in the UK for solar panels to be viable?

Solar panels don’t need a clear, sunny day to work. They will produce more power on a brighter day but can still produce energy when there is cloud cover. The UK as a whole actually receives the same amount of solar energy as some parts of France and Spain, albeit mostly on the South Coast.?

Can I take advantage of the Feed-in-Tariff?

The Feed-in-Tariff allowed businesses to sell any excess energy back to the grid at a set price. However, this has since been replaced by the Smart Export Guarantee (SEG). The SEG also allows businesses to be paid for their excess electricity too, but at a rate set by their energy provider.?

Is there anything else I need to consider?

If you are looking at installing solar PV on a large scale, for example, in the form of a solar field, you’ll require planning permission. The final planning decision will be based on several different factors including visual impact, potential community benefits, impacts on the local ecosystem and grid connectivity. You may also need to apply for planning permission if you intend to install your solar PV system on a listed building or in a world heritage site.?

How much do solar panels cost?

Of course it depends on the size of the system, but you can expect to invest around ￡10,000 for a small commercial set-up. This would cover the supply and installation of the solar panels, inverter, isolators, cabling, relevant testing, certification and registering with regulatory bodies.

Large scale systems may also require feasibility studies, lengthy, detailed planning, and landscaping work.

Some energy suppliers may offer power purchase agreements (PPAs) to businesses that meet qualifying criteria. This would mean that solar panels would be installed at no cost while the electricity generated is purchased back from the funder at a cheaper rate, saving you a substantial amount on your electricity bills.

Although for the most part, the benefits outweigh the downsides, investing in solar panels for your business can be an expensive decision and requires some careful consideration. If you would like to talk through the options, costs and benefits of solar PV with an expert, get in touch with one of our Energy Consultants on 01273 447012.