From concerns about poor panel efficiency and the unpredictable British weather to worries about long payback periods, Geo Green Power bust the biggest myths surrounding commercial solar energy in 2024.
Over a third of UK businesses report that unpredictable energy costs have hindered their growth in the past year. Yet almost half (44%) of these businesses do not plan to increase their onsite energy generation capacity within the next two years.
So, what’s putting businesses off from taking the leap into on-site renewables? Energy experts at Geo Green Power explore some of the biggest myths around solar energy and discuss how businesses can benefit from green energy in 2024 and beyond.
Solar panels are inefficient and won’t power your business
The efficiency of solar panels – meaning how much sunlight they convert to usable, clean electricity – has improved dramatically over recent years as the technology behind it has evolved.
Advancements in photovoltaic (PV) technology, better materials, improved manufacturing processes, and more sophisticated system designs, mean businesses produce more energy using fewer panels. The result: savings on initial installation costs and the ability to generate more electricity, reducing the amount of power businesses need to buy from the grid.
James Cunningham, managing director of Geo Green Power, a renewable energy company based in Nottingham, explains, “Higher-efficiency solar panels need less space to produce the same amount of electricity as lower-efficiency ones. This is especially important for installations in areas with limited space, like smaller commercial buildings and urban settings. By generating more power in the same footprint, businesses can more easily scale up and meet their energy requirements with solar PV.
“Last year we completed a 38 site installation roll out with Inchcape UK, installing solar panels on their car dealerships and service centres throughout the UK. Many of these dealerships operate entirely “off-grid” throughout the summer thanks to their solar PV installations and bills are significantly reduced all year round.”
The long payback period for panels makes them an unworthwhile investment
Investing in commercial solar panels can result in substantial cost savings in the long term, with medium-sized installations (50kW) saving businesses over £10,000 a year on energy bills, particularly when installed on a south-facing roof with ample sunlight.
Increasing their appeal to business owners, commercial solar investments also deliver a full payback on installation costs in around 4 years and require little maintenance. The return on investment starts as soon as the solar system is switched on – providing clean, renewable energy, instead of businesses having to rely on the grid.
In 2021 Geo Green Power installed a 350kW solar PV system for packaging manufacturer West Coast Corrugated in Kirby, North Liverpool. Generating over 285,000 kWh of electricity per year, the system was designed to provide approximately 30% of the site’s energy requirements, delivering full payback within 5 years and continuing to deliver savings for over 20 years thereafter.
In the last 3 years the system has helped to protect West Coast Corrugated from volatile energy markets, saving over £100,000 and reducing the initial payback time by around 6 months.
Installation costs are too high
Installation costs have in fact never been cheaper. From an industry high in 2022, when demand outstripped supply, the cost of panels has fallen significantly as manufacturing has increased.
Higher panel wattage has also reduced installation times, with fewer panels needing to be installed to generate the same amount of energy. Costs now range from around £40,000 for a 50kW system to £300,000 for a 500kW system, with factors like system size, panel location and access requirements influencing the final cost.
If you are basing installation costs on a proposal you received 12 months ago or more, you should request a new quote, as the figures could differ significantly.
The good news is that businesses looking to invest in renewable technology may be able to access grants for solar installations thanks to a number of Local Authority and National Government funding schemes, including the Smart Export Guarantee (SEG) which means businesses can be paid for excess power exported back to the grid.
Government and tax incentives, alongside solar costs decreasing by 82%, have made solar a more viable option for businesses looking to achieve long-term cost savings while improving their green credentials this year.
The unpredictable British weather makes solar a bad option
Even with the UK’s variable weather, solar panels can contribute substantially to energy savings and reduce carbon footprints.
Solar panels can generate electricity from both direct sunlight and diffused light, which is light scattered by clouds. The UK’s frequent cloudy weather still provides sufficient diffused light for solar panels to operate. Modern solar panels are designed to be efficient even in lower light conditions.
Cunningham adds: “Despite the common perception that they require constant, strong sunlight to be viable, solar panels can perform effectively in the UK’s weather conditions.
“There is naturally an element of seasonal variation, with the longer days of sunlight in the summer months allowing for the generation of a significant amount of electricity. In winter production does decrease, but panels still generate some power.”
It costs a lot to maintain solar panels
Contrary to popular belief, solar panels are relatively low maintenance due to their simple construction and the absence of moving parts. When installed properly and given the appropriate level of servicing and maintenance, they are designed to last 25 years plus.
“There remains a common misconception that maintaining solar panels can be expensive and complex,” says Cunningham. “This belief likely stems from a lack of understanding about the technology, the nature of solar panel systems and how frequently maintenance is required.”
To keep your solar panels running efficiently, an annual service is recommended. This ensures your system stays in full working order and any issues are quickly addressed. While average rainfall generally keeps panels clean, local conditions like weather, bird activity, and overhanging trees might require occasional cleaning.
Should you switch to solar?
Speaking about why Geo Green Power has put together this advice James Cunningham, the Managing Director of the company, commented:
“Naturally, the initial expenditure for solar panels can be seen as a barrier. However, as many businesses face consistently high energy bills, it’s crucial to shift our mindset from short-term costs to the long-term gains these systems provide.
“Whether it’s saving money, securing future energy supply, enhancing competitiveness, or contributing to decarbonisation, the benefits of switching to solar generation are substantial. We’re also seeing more and more businesses looking to us to help them reduce their scope 2 emissions in order to retain contracts with customers who are focusing on Net Zero ambitions.
“I urge businesses to reconsider if they’ve been deterred by high quotes or perceived limitations like limited roof space in the past. Solar technology advancements have made systems much more efficient and cost-effective, expanding opportunities for many commercial properties.”
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