Commercial benefits of solar PV and financing strategies

The process of capturing sunlight on panels for conversion into electricity can provide businesses of all sizes a multitude of commercial benefits, including lower operating costs and reduced carbon emissions. The systems are versatile to implement, with projects ranging from small office rooftop systems to expansive solar farms designed for large-scale energy production.

COMMERCIAL BENEFITS OF SOLAR PV

1. REDUCED ENERGY BILLS

The primary and most immediate financial advantage of solar PV is its ability to significantly reduce energy bills for commercial businesses, with potential savings of up to 50%. This reduction in overhead costs is especially beneficial for industries like manufacturing, where energy expenses comprise a large portion of operational costs.

2. ENERGY INDEPENDENCE AND LONG-TERM SECURITY

By producing solar energy, businesses are able to reduce their dependence on the fluctuating national grid electricity prices that largely operate on a supply and demand basis, avoiding difficulties such as the ‘energy crisis’ during the COVID-19 pandemic. Between 2021 and 2022, it is reported that businesses’ electricity bills drastically increased by 63%.

Investing in solar technology not only cuts overheads, but also ensures more stable and predictable operating costs in the long-term, especially when considering solar panels’ low maintenance requirements and 25 year lifespan.

Further security is also achieved through aiding in compliance with existing environmental regulations in the market, as well as any potential future policies anticipated as the UK government moves toward achieving Net Zero by 2050.

3. ENVIRONMENTAL SUSTAINABILITY

Alongside wind energy, solar PV is one of the cleanest alternatives to traditional fossil fuel-based energy sources, offering businesses a sustainable solution for meeting their electricity needs while reducing carbon emissions.

Unlike many other forms of renewable energy, it does not produce any greenhouse gas emissions or air pollutants during electricity generation, along with minimal land impact for smaller projects and zero noise pollution.

4. ENHANCED CSR

As stakeholders increasingly prioritise corporate social responsibility (CSR) and environmental, social and governance (ESG), committing to renewable energy initiatives becomes a viable option for brands. Embracing renewable energy not only aligns with CSR/ESG goals but also enhances a brand’s goodwill, encouraging positive perceptions and relationships with stakeholders to help attract and retain customers as well as employees.

5. INCREASED PROPERTY VALUE

Due to the aforementioned advantages, commercial buildings equipped with solar PV, or readily available for PV installation, are more sought after, increasing the property’s market value and asset appreciation.

FINANCING SOLAR PV- MAF FINANCE GROUP

As solar PV technology continues to progress and commodity prices steadily decrease, the cost of installation is forecast to decline in contrast to the rise experienced during the Covid-19 pandemic.

However, despite this positive trend, implementation costs can remain a significant barrier for companies, requiring a large injection of capital investments that might deter their transition to renewable energy sources.

Through our sister company, MAF Finance Group, we provide clients with alternative flexible funding solutions.

The solar panel finance solutions allow businesses to mitigate the major upfront costs, protecting business cash flow through tailored repayment options such as Hire Purchase.

ABOUT EDDISONS

At Eddisons, we specialise in providing sustainable solutions, helping clients develop their decarbonisation plans.

Regardless of your objectives, our dedicated decarbonisation team is on hand to advise you on how to meet Net Zero targets. From the initial decarbonisation planning process, assistance with funding applications and guidance on financing options, through to the actual implementation of energy and cost saving initiatives.