For most businesses, the majority of energy usage will take place during the day. It’s for precisely this reason that companies can make exceptional savings on their electricity bills with a solar installation. Companies who rely heavily on generated electricity will see the most significant results.
That said, small commercial operations will still find themselves making huge energy cost savings while also protecting themselves from bill spikes and the unreliable nature of traditional energy company’s pricing policies.
One of, if not the biggest deciding factor for installing solar is for financial gain. At the time of writing this, if you were to purchase a PV solar solution outright, it would deliver electricity at an approximate rate of 7cent per kWh. In comparison, grid supplied electricity is currently at a rate of mid 30’s per kWh (excl. vat and standing charges) and rising.
Protect your business from rising grid supplied electricity costs
We’ve touched off future proofing in previous blogs (Solar Solutions for Irish Businesses), but over the next ten years, it’s been widely speculated that energy prices are set to at least double. Solar panels provide a way in which companies can fix a large portion of their electricity costs for decades to come. Not just the next ten years but the next twenty, even thirty – the conservatively estimated lifespan of your PV system.
Investing in a smart energy solution for your business allows you to forward-buy your electricity at a fixed rate. You will not be exposed to the same unpredictability of price hikes that are dependent on so many variable factors. This, in turn, makes financial forecasting a lot easier.
Ireland is making considerable moves in the right direction to reduce its reliance on traditional energy sources. It’s funding positive initiatives that promote and encourage businesses to turn towards Solar. Recently it was reported that Leo Varadker wants to see solar panels on every farm roof in the country, that’s quite a clear statement.
Despite these positive strides, the price of grid provided electricity is still being driven by supply and demand. Companies are in a position where they can protect themselves against spikes through investing in their own green energy.
Payment for exported electricity – The Clean Export Premium (CEP)
If your company is in a position to not only use the solar energy it produces but to sell excess back to the grid, there is also good news. Energy companies are looking to purchase electricity from businesses generating their own electricity.
The Clean Export Premium (CEP) will be €0.135/kWh in 2022, which is higher than the current average wholesale electricity price. Any difference between the CEP tariff and wholesale electricity prices will be supported by the Public Service Obligation (PSO) levy
Fore more details on CEP you can visit the government website.
Low Maintenance and Running Costs
Whether you buy a system outright or avail of our very accessible Power Purchase Agreements, the running of a solar installation requires little to no work on your part. The company that installs the panels will be able to run an annual check up to ensure all is working as it should. With so few moving parts to a PV system, this is more good practice than requirement.
Remember the cost per KwH we mentioned in the financial savings point? That includes the associated maintenance and running costs. Nice to know, isn’t it?
What about Battery Storage?
In most cases it currently doesn’t yet make sense to install solar batteries for business. Businesses will use all the energy they produce and the cost of batteries are yet to make it a financially viable solution. The situation is constantly evolving and this may change over time but at present using what you produce and the option to potentially sell any excess back to the grid is currently the more attractive proposition. Please contact us to discuss your specific setup and requirements if you feel that your situation is unique and may benefit from a back up storage unit.
Reducing your carbon footprint
If we’ve said it once, we’ve said it 100 times, generating your own solar energy will significantly reduce your carbon footprint. In business this offers a competitive edge and can be a coup for corporate responsibility
The Key Take Aways
- Financial Savings
- Reduced Running Costs
- Easier to Project Outings and Financially Forecast
- Future Proofing your Business
- The Clean Export Premium (CEP)
- Reducing your Carbon Footprint
Caldor are specialists in both residential and commercial solar panels for a wide range of commercial sectors. Discover our green solutions to generate optimal returns.
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