What is a commercial solar photovoltaic (PV) system?
A commercial solar PV system uses solar panels on business premises to utilise the energy from the sun to generate electricity. Depending on the size of the installation, the electricity generated can meet a large portion, if not all, of the business’ energy needs and can go a long way to reducing energy bills. Public buildings such as hospitals, schools and libraries can also avail of the benefits of solar PV and reduce carbon emmissions.
Solar panels are mounted on the roof of a building, adjacent land or water bodies and are integrated into the business electrical network. The photovoltaic system, also known as a solar PV system, transforms the energy from the sun into electricity, which then powers the building’s energy requirements. The solar panels generate electricity throughout the year, especially in the summer and battery systems can also be installed to use the stored power after dark.
Are commercial solar panels right for my business?
For any business that operates during the day time, significant savings on electricity bills can instantly be achieved with solar power. High users of electricity benefit the most.
Most commercial installations will see a return on their solar investment after 4 years. Even small businesses with lower energy use can achieve savings by investing in solar renewable energy.
Financial savings
One of the biggest reasons for making the decision to install solar is for financial gain, and there are big gains to be had. At current installation costs, a solar PV system delivers electricity at a rate of around 9 Cent per kWh including Operations & Maintenance costs. This compares with the current grid supplied rate of approximately 13c per unit.
In many cases your commercial solar PV system will return enough benefit to achieve a positive cash flow within 60 months when you finance the capital outlay.
Solar panels have no moving parts so ongoing maintenance costs are minimal.
A fantastic win for your businessWho should consider installing commercial solar panels?Solar makes good sense for any business or campus (university, college, school, hospital or business park etc), with a decent roof (or plot of land) and a long-term (10 years plus) intention to stay in their premises. Ideally the business should own the freehold of their premises, or should have a long-lease over the property. The lifetime cost per kWh of solar electricity is now 9c per kWh… this compares to 13 – 15c for electricity purchased from the grid.
In the right business, the system will more than pay for itself, should be financeable if necessary and will provide all of the following benefits:
- Inflation linked returns of 10% plus from bill savings alone.
- Grid independence – depending on space and load, solar will typically provide anywhere between 10% and 60% of the annual electricity requirement, increasing by around 20% with battery storage.
- Protection against rising electricity prices.
- Improvement in Energy Performance Certificate (EPC) rating.
- Reduced carbon footprint.
- Building Regulations compliance for new builds.
- Reliable, low maintenance technology.
- A positive response from employees, visitors, customers, suppliers and shareholders.
Costs, subsidies and payback timeRooftop solar panels usually cost between €850 and €1500 per kWp installed, depending on roof access costs, roof covering and roof pitch (flat, sloping etc). A 50kWp system will cost anywhere between €43,000 and €60,000 plus VAT.
A kWp typically gives a saving of around €105 per year, so €5,250 for a 50kWp system, giving a payback time of between 6 and 10 years. The panels will last 25 years or so (with possibly one inverter replacement expected during this time).
The % return over 20 years is usually in the order of 9-18% (IRR%).
Most of the return comes in the form of a reduced electricity bill – for a typical business, each kWh generated by the solar system is worth around 13c if used on site.
The lifetime cost per kWh of solar energy cost is remarkably low, around 7c.On average over 25 years (taking into account degradation of panels), a kWp will generate between 750kWh and 900kWh a year. That’s around 20,000 kWh over the life. So the cost per kWhof solar energy is only around 5.5p per kWh.
The grid cost is 13c for the typical business, and rising and set to rise a little bit more when Ireland reduced its dependence on coal fired power stations.Why CubicM3 Solar?
We undertake solar PV projects all across Ireland.
We have a proactive approach and take pride in our ability to combine bespoke solutions with best value for money. We have seen continued growth in solar PV installations both across the new build sector, and by end-users (schools, universities, corporates and public sector sites).
All of our work is undertaken in-house, this allows us to pay attention to the detail and deliver technical excellent solutions at a very reasonable cost. Having installed systems for almost 10 years, we know most equipment suppliers and can recommend the best technology for each client.
We have a first class in house team of engineers. They love a challenge and enjoy designing bespoke solutions, whether using building integrated technology (e.g. solar glass, solar roof tiles), customised triangular panels, or off-grid technology.
Finally we provide full O&M support for the life of the system.
Our services include:
- Free consultation and quotation for projects.
- Free completion of tender documents.
- In depth feasibility studies and system design.
- Technology integration – on-grid and off-grid solar, storage, EV charging
- Installation using in-house solar installers, servicing and maintenance.
- Financing support to help you transform your energy use at no upfront cost.
- Continuous Professional Development (CPD) training
