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Keen to reduce your business electricity bills
Want to reduce reliance on the energy grid
Want to reduce your carbon footprint
Want to harness the power of the sun
Warehouses are often the ideal place for solar panels because:
Businesses can save themselves a huge amount of money, help the environment and avoid being at the mercy of power companies by powering their warehouse with solar panels.
Before we discuss the benefits and drawbacks of solar energy in more depth, we’ll give you the most important figures on solar investment for warehouses.
Typical rates of return for warehouse solar investments are around 15%. This means that the initial investment is typically paid off within 6-7 years. With solar panel systems normally coming with a 25 year warranty, this means that most businesses will benefit from at least 19 years of free electricity.
Rates of return can, in fact, be higher. In the right circumstances and with the use of the annual investment allowance, rates of return on a commercial solar investment can be as high as 25%.
So that you can see how much of your total energy demands you’ll be able to meet with a solar panel system, here is how much electricity solar panel systems of different sizes will typically produce. Note that output does vary slightly depending on the weather and local conditions.
We’ve also given figures on the total savings this will provide, based on an electricity price of 35p/kWh.
Roof Space m2 | System Size | Electricity Output | Annual Savings |
600 | 110.1 kW | 68,811 kWh | £23,396 |
1250 | 250.7 kW | 156,691 kWh | £53,275 |
2750 | 501.4 kW | 313,379 kWh | £106,549 |
The amount of electricity that you can generate depends on the size of your solar panel system. Usually, this is dictated by the size of the roof. The bigger the system, the more electricity it generates.
It should be noted, however, that it is necessary to match a system’s size to the energy demands of your business. While most businesses will simply need to aim for maximum output, where energy demands are low, it may be necessary to actually reduce the size of the system.
Another thing to consider is that, as well as consumers preferring environmentally friendly businesses, there’s now more legislative and inter-business pressure to adopt more sustainable practices.
Large businesses are often up to speed on the issue of environmental friendliness, but small and medium sized enterprises (SMEs) are often less so. Where SMEs exist in the supply chains of larger businesses, it may pay to take measures to change now. For more complete information on how important environmentally friendliness is becoming to SMEs, check out this guide from the British Business Bank.
The final thing to mention with solar panels is that they’re low maintenance.
This may not seem like an important point, but it means that a solar panel investment is usually a very reliable and predictable one. Most solar panel systems, after they’re fitted, only need to be checked occasionally and to have very basic cleaning and maintenance tasks carried out on them.
If your warehouse is in a very dusty area, then more regular cleaning may be required. However, generally speaking, solar panel systems are a very straightforward investment. The overheads are very minimal and the only major consideration is the cost of installation.
We provide bespoke system designs for every business, based upon your energy usage and rooftop availability. To give you an idea of the savings and cost of a system, the below are some of our common system sizes.
Ideal for office buildings
Save £10,561 per year
From £45,000
Ideal for warehouse buildings
Save £23,396 per year
From £96,300
Ideal for manufacturing plants
Save £53,275 per year
From £212,500
Ideal for distribution centres
Save £106,549 per year
From £418,600
All savings are based upon a solar generation yield of 850kWh/kWp installed per annum, with usage of 71.43% of solar energy generated, assuming a 35p/kWh electricity import rate. Savings may change year on year dependent upon weather conditions, energy prices and system degradation in line with warrantied output.
Here are the main things to think about when deciding whether or not to invest in solar panels for your warehouse.
The big benefit that solar panel systems consistently offer to warehouse businesses is financial savings.
According to UKWA, warehouse solar panel systems normally reduce annual electricity costs by 40-80%.
Warehouses can accommodate large, highly productive solar panel systems that match well with high daytime demands for electricity. On top of this, the construction of a warehouse solar system is also usually more economical than in other locations. This reduces the amount needed for the initial investment.
As a result of this, solar panels offer a quick return on investment and a big cost saving. As we said earlier, a typical warehouse solar panel system will provide at least 19 years of free electricity. For a 250.7 kW system, for example, this will equate to a total saving of over £1 million.
Solar panel systems can also last for as long as 40 years.
As well as reducing the amount a business spends on energy, having a solar panel system also means that the business isn’t at the mercy of energy company price fluctuations.
With a solar panel system, you’ll be able to guarantee a consistent amount of free electricity for your warehouse business. This makes business planning easier and protects you from the effects of price fluctuations. This benefit is even more relevant nowadays, given the high level of volatility in the energy markets.
Having a solar panel system will also mean that your business is doing a huge amount of good for the environment.
According to the UKWA, warehouse solar panel systems reduce carbon emissions by between 13 and 130 tonnes per year
Solar panel electricity is environmentally friendly, and you’ll have the satisfaction of knowing that your business is doing what it can to combat climate change. As well as having personal satisfaction, this could also be good for your reputation with customers.
As you can see, there are plenty of reasons to invest in solar panels for a warehouse.
All these things combine to make warehouses the perfect place for solar panels.
To find the best solar panel company for your business, you can compare solar panel suppliers here.
We save you on average 24% when investing into Solar for your organisation.
We will check if you qualify for any incentives or grants
Match to a local company keen to help you start saving
Your business is keen to reduce electricity bills
Your business wants to produce its own energy
Your business wants to be seen as more eco-friendly.
Your business owns the premises with your own roof space
Brands using Solar Power
Salisbury Cathedral
Prodrive Motorsport
Marks & Spencer
Save massively on your electricity bills when you invest in solar.
When it comes to commercial solar, there are a few ways to purchase your system, we’ll help to guide you through your options.
Using the Annual Investment Allowance, you can deduct the cost of your system against corporation tax.
Spread the cost with asset financing and use your bill savings to pay off your annual loan repayments
Purchase your system outright, for the best return on investment
We save you on average 24% when investing into Solar for your organisation.
We will check if you qualify for any incentives or grants
Match to a local company keen to help you start saving
Egerton House, 2 Tower Road, G5D, Birkenhead CH41 1FN
