As the rush to make homes gas-free by 2035 begins this guide is essential reading for businesses that sell, provide or install solar products for domestic and commercial use, or are interested in entering the sector. In this guide we look at what buyers want when considering renewable energy generation, and how your business can increase confidence in the technology and your ability to deliver as a supplier.
The solar market is particularly buoyant right now, with households and businesses alike seeking alternative solutions to heat their homes and workplaces due to high energy prices.
Solar is an attractive proposition as it easily understood by consumers and is relatively straightforward to integrate into a home or building. The technology is low maintenance, long lasting and as an added benefit owners are able to sell excess energy back to the grid via the Smart Export Guarantee. In addition, the technology is net zero, and improves the environmental credentials of a building and business immediately.
The buoyancy in the market and increased demand for skilled professionals means that for tradespeople with transferable skills, solar presents a huge opportunity to grow your business and provide your customers with technology which is of increasing demand.
Solar technologies harvest the suns energy to create heat or power. The most commonly applied technology is Solar photovoltaic (PV). Solar PV systems convert energy from the sun into electricity through semi-conductor cells. Systems consist of semi-conductor cells connected together and mounted into modules. Modules are connected to an inverter to turn their direct current (DC) output into alternating current (AC) electricity for use in buildings. Photovoltaics supply electricity to the building they are attached to or to any other load connected to the electricity grid. Excess electricity can be sold to the National Grid when the generated power exceeds the local need. PV systems require only daylight, not sunlight to generate electricity (although more electricity is produced with more sunlight), so energy can still be produced in overcast or cloudy conditions.
Solar Thermal or Solar Water heating uses energy from the sun to heat water systems and PV-Thermal (PVT) is a hybrid system which provides both heat and electricity.
Solar technologies are particularly attractive to customers as they integrate well with existing energy systems, and can be gradually added to, creating a whole energy system. This system integrates solar technology with battery storage and electric-vehicle charging points and can be commissioned stages to help buyers to manage costs and minimise the impact on business continuity.
According to Solar Energy UK, the solar industry trade body, a typical home installation should cost between £6-7k. For a small office requiring a 5 -9kW output the cost would be around £8k, with an energy intensive business looking for an output over 25kW paying considerably more.
Whilst the cost of solar has increased in line with inflation during the past 12 months, due to current energy prices the investment is now much more affordable. Projects that were not viable, say, five years ago, probably will be now, as the payback period is so much shorter.
Spending time to research local competitors pricing and demonstrating your value will be important potential customers, particularly in the public sector where value for money is weighted highly in procurement processes. If your prices are higher than your competitors it will be important to demonstrate what value you add for the difference – e.g. shorter lead times, better technology, additional certifications etc.
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According to Solar Energy UK green heating can save more than £3,000 on energy bills every year and in a typical gas heated home. Solar panels save around £1,276 a year, suggesting a payback period of around 6 years and if the property is owned, solar panels can add around £2,000 to the value of a home.
In a commercial property the opportunity can increase further depending on the size of the building and energy use. The Energy Saving Trust Solar Energy Calculator estimates fuel bill savings and financial payments for the property and will be a useful tool to demonstrate value to your customers, but an energy consultant will be able to provide a bespoke measurement of the potential saving to the customer.
The Smart Export Guarantee (which replaced Feed in tariffs in 2020) enables those with solar energy to be paid for the electricity they sell to the grid. Solar Energy UK details the latest tariffs and considerations that a buyer should consider.
Solar PV installation does not usually require planning permission unless the installation is on a listed building. Both installers and energy devise owners have a responsibility to ensure that work complies with building regulations. This information is available on the relevant local authority website.
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Yes but only with permission and in partnership with the property owner. At Green Economy we are experienced in supporting green tech buyers in demonstrating the value of this investment. If you would like to arrange a consultation in partnership with the business and landlord please contact us.
Read our case study about installing solar onto a rented warehouse.
A key consideration for a business will be the length of the install and the likely impact on the business. Project length will of course vary depending on the size and scale of the project with a small domestic project taking approximately two days, up to six months for a solar development.
Ensuring that you can provide your customers with this information at the point of quotation will be key to manage expectations and ensure high quality customer care. Explain the need for health and safety considerations, like working a height and the requirement for scaffolding or other safety equipment, and the impact this may have on the install time.
Customers will be keen to understand your credentials, but also your professionalism, through customer feedback, testimonials and case studies. The solar landscape is complex and third-party assurances will provide comfort to both domestic and commercial customers.
Create a free profile on our Marketplace to demonstrate your professionalism to new audiences.
Customers want to know that you have a thorough understanding of the technology, but also the wider net zero transition. It may be too soon to consider renewable energy generation if energy efficiency measures haven’t been implemented first. Building a network of contacts across the journey to net zero, or joining Green Economy helps you provide that end-to-end service in collaboration with local partners.
You may also be able to ‘upsell’ a whole system approach. Solar installations can be the first step to total self-generation, by looking at the bigger picture and exploring routes to installing electric-vehicle fleets and battery storage, but presenting this as a long-term strategy and phased capital investment project, will demonstrate that you’ve thought about the longevity of this project for your customers.
Customers will want assurances that the technology they have invested in will continue to work in the long term and you can demonstrate this by working with products that are Microgeneration Certified Scheme (MCS) certified.
Clearly explaining the period of guarantee offered by the manufacturer and even delivering your own maintenance scheme can be an effective business model to ensure you can retain existing customers and will enable you to recommend system improvements that will bring less reliance on the grid in the future.
Demand for solar installations is high, and as the UK Government commits to gas-free homes by 2035, this will peak further over the next decade.
For plumbers and electricians that work with fossil fuel-based systems, the imperative to reskill will only increase over the next few years as businesses and homes begin to retrofit their systems and move towards renewable alternatives. This market is growing and at Green Economy, we are seeing a mass increase in tenders and sales opportunities from buyers within public sector, domestic retrofit schemes, business settings and new developments.
Green Economy partner, the Green Skills Academy, offers courses to reskill roofers, plumbers and electricians to install solar pv. Find out more information about the course on the GC Education and Skills website.
Solar photovoltaic devices must be registered with the local Distribution Network Operator (DNO). You should engage with the DNO as early as possible especially if the installation is considered a large system and if they want to sell back to the grid. In some instances customers just need to connect and notify but there are occasions where we will need to carry out work on the network.
If you're based in the North West you can find more information about generation connections on the Electricity North West website.
Outside of the North West?
The Energy Networks Association will help you to identify the operator in the area of the installation.
At Green Economy we have an extensive network of installers and suppliers of equipment across solar technologies. Due to supply chain challenges, the wait period on solar panels is approximately 8 weeks.
To connect with local suppliers run a search on our Marketplace or get in touch with our team for bespoke support.
For some buildings self-generation will not be feasible and a route to overcome this is developing a community generation project. The approach brings a cluster of local partners together to invest in renewable energy together, the benefits being a lower capital investment for the client and potentially a larger project for the supplier. Electricity North West shared some of their experience in supporting community projects for this story about self-generation below.
Green Economy connects solar installers, manufacturers, suppliers and tradespeople with connections to domestic and commercial customers who are on their journey to net zero. Green Economy members create a free profile on our Marketplace, which customers can use to find your business and approach you directly.
In addition, we share exclusive sales opportunities with our members each week and invite our members to exclusive business development, networking and meet the buyer events.
Solar installers, suppliers and providers operating in Greater Manchester and West Yorkshire are eligible for fully-funded business growth support from Green Economy's consultants. Our teams can help you build a growth strategy to ensure long term competitiveness.
We're developing a pilot programme to support new entrants to the green tech sector. Complete this form to express interest and we'll be in touch.
The energy price crisis is driving the fastest deployment of solar power for eight years, with Google searches for solar panels reaching their highest ever level, according to industry insiders.
Ellard sought support from Green Economy to find a partner for their solar project, which led to a Meet the Buyer event for four local firms.