THE LATEST BUDGET: AN OPPORTUNITY FOR COMMERCIAL PROPERTIES TO GO SOLAR
Posted on 15th May 2023 at 14:45
In the current economic climate, many businesses are looking for ways to reduce their bills – and investing in solar panel and battery systems can offer significant savings.
Obviously, there is an up-front cost, but when the Chancellor Jeremy Hunt announced his budget this Spring, he maintained a Capital Allowances provision that means 100% of all qualifying investment in new and unused plant or machinery can be deducted from taxable profits for three years from 1st April 2023. So it’s worth checking with your accountant if a solar panel and battery system for your business would qualify.
Bottom line benefits
Installing solar energy systems also have long-term benefits, as they allow businesses to generate their own electricity, reducing their reliance on the grid and lowering their energy bills. In some cases, excess energy can also be sold back to the grid, generating additional revenue.
A construction company recently asked SCA Solar to design and quote to provide a solar package for a dialysis centre in south London – a building with intrinsically high energy requirements.
The investment was significant, with a price tag of just under £200,000 – but the payback potential was greater still: calculations showed that the system would pay for itself in four years if they used 50% of the electricity they generated, and this was a conservative estimate. Given the likely energy usage, the centre could be ahead after just two years.
In the case of another commercial installation in Cheshire, the payback for the customer was expected to take six years (again based on them using 50% of the electricity generated from their solar system – higher usage will mean a shorter time to make the return on the investment).
Going green – not just about saving money
And it’s not all about the financial returns. By using renewable energy, businesses can reduce their carbon footprint and contribute to the fight against climate change.
In fact, sustainability in today's business world is no longer just a ‘nice to do’- it has become an essential component of a responsible society. Many customers, employees, and investors are looking for organisations that prioritise sustainability and demonstrate a commitment to saving our planet.
Installing solar panel and battery systems on commercial properties is one way to contribute to achieving this goal.
As business owner Shaun Giltrap explains: ‘We are passionate about the environment and the contribution our systems can make to organisations trying to reduce their carbon footprint – and we know they make sound economic sense too.
‘We have never been a ‘one-size fits all’ company, we take the time to analyse electricity bills, usage patterns, building construction and location – as well as talking to people about their longer-term plans so we can build as much future-proofing as possible into the systems we design and build.
‘There really has never been a better time for commercial businesses to go solar.’
Tagged as: Solar Panels Cheshire
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