How much does solar cost to install?
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.
Get advice on your value proposition from Green Economy advisors.
What is the buyback on solar energy? How long will it take to see a return on investment in solar?
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.
Search for local energy consultants on our Marketplace.
Are there any financial incentives for solar that I can share with my customers?
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.
Do I need planning permission for solar on my building?
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.
Search for local authority planning permission in:
England
Wales
Scotland
Northern Ireland
Can I install solar onto a building I don’t own?
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.
How long will it take to install solar panels and how will it impact the day-to-day running of the business?
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.
