Solar energy is becoming an increasingly attractive investment for businesses in Ireland that want to cut down on their electricity bills.
Solar panels are a fantastic way of protecting your business against fluctuations in electricity prices, while fostering a reputation for sustainability and a reduced carbon footprint.
The cost of solar panels in Ireland for businesses has declined substantially in recent years, making the initial upfront investment in solar PV far less off-putting compared with the many potential benefits.
The key takeaways:
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Reasons for Businesses to Invest in Solar Energy
There are many financial and environmental reasons to invest in commercial solar power these days, with declining installation costs, rising energy prices, and the chance to reduce carbon emissions incentivising the shift.
Some of the main reasons for businesses to consider installing solar panels are:
Reducing Businesses’ Energy Bills
Electricity can make up a significant portion of any businesses’ operating costs. Installing commercial solar panels can deliver major savings at a time when electricity prices remain far higher than just a few years ago.
Green Business Credentials
Using renewable energy shows that a business is committed to sustainability and reducing its carbon footprint.
Raising Property Values
Installing commercial solar PV panels will raise the value of any property with a higher BER rating and reduced energy costs for owners.
Energy Independence
Commercial solar PV systems protect businesses from shifting prices in the energy market. Solar PV panels can generate up to 50% of the electricity requirements of a business for 25 – 30 years, reducing its reliance on the grid.
Blackout Protection
Having commercial solar PV panels installed on a business, along with sufficient battery storage capacity, can help to keep the power running in the event of a blackout.
More Affordable Than Ever
The cost of solar panels in Ireland has plummeted in the past two years. Combined with grant support, this has made it more affordable than ever for a business to install solar panels and start saving.
Selling Surplus Electricity
Many businesses with solar panels installed will be able to further offset their electricity costs by selling any excess electricity they generate back to the grid.
How much can businesses save with Commercial Solar Panels?
Businesses can save anything from hundreds to thousands of euro each year using solar panels to cut down their electricity bills.
With skyrocketing electricity prices, and many expecting them to stay high for some time, businesses stand to make more savings than ever by using solar panels to generate up to 50% of their electricity needs.
Check out our solar panel calculator too see how much electricity commercial solar panels could help generate for a business.
The exact amount which businesses can save by installing commercial solar panels is determined by how much electricity they use, the price set by their utility provider, and the size of the solar panel system they have.
Even for micro and small businesses consuming less than 20,000kWh of electricity each year, that could mean an annual electricity bill of approximately €6,000.
Cmmercial solar panel installations of just 6kW, around 15 – 20 solar panels, could result in savings of roughly €2,400 on energy bills each year.
Commercial Solar Panels Costs
On average commercial solar panels cost bewteen €1,200 and €1,700 per kWp. These prices will vary depending on the nature of the site and other installation factors.
There is no particular upper limit the cost of commercial solar panel installations, it depends on how much electricity is required and the sized of the solar system being installed.
Small to Medium sized solar panel installations for businesses can cost anywhere from €18,000 to €80,000, with larger costs for extremely large facilities.
Elements which will affect the cost of Commercial Solar Panels include:
Solar Energy as an Investment
Commercial solar panels on a business are also an excellent long term investment of your money. Solar panels give an approximate return on investment (ROI) of 14% – 25%, and commercial solar panels installations will typically have paid for themselves off in 4 – 7 years.
Everything beyond that is free electricity, as well as a source of income from selling surplus electricity back to the grid.
Just a 20kWp solar PV system can generate up to 17,300kWh of electricity each year, saving businesses more than €6,000 on their energy bills.
For any property, having solar panels installed will also help raise its BER, and the subsequent value of the property and reduce your carbon footprint.
Tariffs for Commercial Solar Power
Businesses with solar panels installed can benefit from selling excess electricity they generate back to the grid in a manner similar to residential solar PV systems.
When the solar panels installed on a business premises are generating more electricity than is currently being used the surplus is sent back to the grid, and the business in question is paid for it.
There are two main schemes which may apply for excess solar energy generated by commercial premises, The Microgeneration Support Scheme and the Small-Scale Renewable Electricity Support Scheme.
For solar PV systems up to 50kW in size a tariff will be paid under the MGSS, the rate for which is set by the utility provider.
For Solar PV systems larger than 50kW in size and up to 6MW new tariff rates have been set under the Small-Scale Renewable Electricity Support Scheme, which aims to provide better value to larger businesses.
| Solar PV System Size | Electricity Generator | Tariff Rates |
|---|---|---|
| 50kW – 1MW | Renewable Energy Communities
Small / Medium Enterprises |
€150/MWh
€130/MWh |
| 1MW – 6MW | Renewable Energy Communities
Small / Medium Enterprises |
€140/MWh
€120/MWH |
Commercial Solar Panel Grants
There are multiple grant schemes open to businesses of all sizes which are looking to invest in renewable energy:
Grants of up to €162,000 are available from the SEAI, with more available from other sources for solar panels for industrial and commercial buildings to help with the installation of solar panels.
In the case of the SEAI Non-Domestic Microgen Grant Scheme, the funding is available for almost all business specifically for the installation of solar panels.
Others such as the EXEED Scheme can provide up to €3 million for businesses carrying out major energy investments in new or existing premises.
The Solar Capital Investment Scheme is part of the TAMS 3 programme for farm modernisation, and specifically funds the installation of solar PV for self consumption on farms.
| Grant Scheme | Grant Provider | Maximum Value |
|---|---|---|
| Non-Domestic Microgen Grant | SEAI | €162,600 |
| EXEED Grant Scheme | SEAI | €3,000,000 |
| Accelerated Capital Allowance | Revenue Commissioners | Tax Deductions |
| Solar Capital Investment Scheme | Department of Agriculture | €90,000 / 60% of Cost |
| Energy Efficiency Obligation Scheme | Energy Suppliers / Distributors | Case Specific |
Commercial Solar Panels Installation
How long it takes to install solar panels on a factory or other industrial building will depend on the size of the system and other factors.
For smaller installations consisting of 20 or so solar panels being installed on a small business, the installation could take place in a single day, similar to domestic solar systems.
However, for larger businesses or factories the process might take weeks or even months to design and install. This is particularly true if a factory is located in an area where planning permission is required in proximity to airports or helipads.
Do businesses need planning permission for solar panels?
Planning permission is not needed for commercial solar panel installations on businesses in almost all areas, with some limits in specific Solar Safeguarding Zones (SSZs).
Planning exemptions introduced in late 2022 allow for commercial solar pv panels covering a rooftop area of up to 300m² in Solar Safeguarding Zones without requiring permission.
SSZs are areas around an airport, aerodrome or helipad in which there is a potential for glint or glare from solar panels to impact aviation safety.
Outside of SSZs businesses and industrial premises can install unlimited amounts of roof mounted solar panels without requiring planning permission, as long as that electricity is primarily for internal use.
Ground-mounted or wall-mounted solar panels are also exempted from planning permission up to an area of 75m².
FAQs
Solar Energy for Your Business
To sum it up, commercial solar energy is an excellent way to save money for any business by using renewable energy to cut your bills now, and future proof against further changes in the market by delivering
Get in touch and see how much commercial solar panels can do for your business in terms of savings and reducing your carbon footprint.
Get a free quote for solar energy today and start reducing your businesses carbon footprint!
