Solar Panels for Business Roofs: Could Your Roof Make You Money?

Your business roof probably isn’t doing much beyond keeping the rain out.

But if you have a suitable roof and you’re spending money on electricity every month, it could be doing a lot more.

Solar panels can turn unused roof space into a source of electricity for your business, helping to reduce the amount of energy you need to buy from the grid and potentially generating income from surplus electricity.

At SPI, we help businesses look at whether their roof could do exactly that.

But before you invest, it’s worth understanding how the numbers work.

How Can Solar Panels Save a Business Money?

Solar panels generate electricity during daylight hours. If your business is using electricity at the same time, that electricity can be used directly rather than bought from your energy supplier.

For a business, this can be particularly valuable.

Offices, warehouses, workshops, retail premises and other commercial buildings often use a significant amount of electricity during the day, when solar panels are generating.

The more of your solar electricity you use yourself, the more you can potentially reduce your electricity bills.

There is another option too.

If your solar panels generate more electricity than your business needs, the surplus can be exported to the grid. Depending on your arrangements, you may be able to receive payment for that exported electricity.

So the financial benefit of commercial solar panels comes from two main areas:

• Reducing the amount of electricity you buy from the grid
• Receiving payment for electricity you export

The first is usually the more important one.

For a business, the value of solar isn’t just what the panels generate. It’s what that electricity allows you to avoid buying.

At SPI, we look at your business’s electricity use alongside the expected generation from the solar panel installation. That gives you a much clearer idea of what the investment could actually deliver.

Could Your Business Roof Generate Enough Electricity to Make a Difference?

The size of your roof matters, but it’s not the only thing to consider.

The size of the solar panel system, your electricity consumption and when your business uses electricity all have a bearing on the potential return.

A large warehouse roof might have plenty of space for solar panels, but the important question is what that solar panel system could contribute to the building’s energy needs.

Likewise, a smaller commercial property with high daytime electricity use could potentially make very good use of its available roof space.

At SPI, we don’t simply look at how many panels we can fit on a roof.

We look at the property, the available roof space and how the business uses energy before recommending a solar panel system.

The aim isn’t to cover the roof with panels. It’s to install a solar panel system that makes financial sense for the business.

What If You Don’t Own the Building? Can You Still Add Solar Panels to Your Business Roof?

Not owning the building doesn’t necessarily mean you can’t install solar panels.

However, you’ll need to consider your lease and get the appropriate permission from the building owner.

There are also some practical questions to answer.

Who pays for the installation? Who owns the solar panel system? Who benefits from the electricity it generates? And what happens if your business moves before the installation has paid for itself?

There are different ways these arrangements can work, but they need to be agreed before any work starts.

If you’re renting your premises, it’s worth having the conversation with your landlord early. A solar panel installation could potentially benefit both parties, particularly where the business is a long-term tenant and the building owner wants to improve the property.

What Happens to the Electricity Generated by Solar Panels if Your Business Doesn’t Use It?

Your business won’t necessarily use every unit of electricity your solar panels generate.

What happens to the surplus depends on your setup, but there are two main options.

Use It in Your Business

Using your solar electricity directly is often where you can get the most immediate value from commercial solar panels.

Every unit of solar electricity your business uses is a unit you don’t need to buy from your energy supplier.

This is why understanding your business’s electricity consumption is so important when designing a solar panel system.

A business that operates mainly during the day may be able to use a significant proportion of its solar generation directly.

Export the Surplus

If your solar panels generate more electricity than your business needs, the excess can be exported to the grid.

You may be able to receive payment for exported electricity, depending on the tariff and arrangement available to your business.

Exporting surplus electricity can improve the overall financial return from your solar panel installation, but it shouldn’t be the only number you look at.

When SPI assesses a commercial solar installation, we consider both the electricity the business could use and any potential surplus that could be exported.

Could Battery Storage Make Commercial Solar More Valuable?

A battery can give your business more flexibility over when it uses the electricity generated by its solar panels.

Instead of exporting surplus electricity during the day, a battery can store some of it for use later.

That could be useful for businesses that have lower electricity demand during the day but continue using electricity into the evening.

Battery storage can also be worth considering where managing electricity demand and tariffs is important.

But, just like with solar panels, a battery isn’t automatically the right choice for every business.

It adds to the upfront investment and has its own lifespan and warranty.

The right question isn’t “Should my business have a battery?” It’s “Could battery storage improve the financial return from my solar panel system?”

That’s something worth calculating before you commit.

What About the Tax and Business Benefits of Commercial Solar Panels?

The financial benefits of commercial solar aren’t limited to the electricity bill.

There can also be tax and business-rate considerations when investing in solar panels and battery storage.

The exact treatment depends on the business and the equipment involved, and tax rules can change, so it’s important to get up-to-date advice from your accountant or tax adviser.

For the purposes of assessing your solar investment, these benefits are worth considering alongside the cost of installation, expected energy savings and potential export income.

They shouldn’t be treated as a reason to install solar on their own, but they could improve the overall business case.

Are Commercial Solar Panels Worth the Investment for Your Business?

For many businesses, commercial solar panels can be a worthwhile investment.

But the answer isn’t simply about whether solar panels generate electricity. It’s about what that electricity is worth to your business.

Look at how much electricity you use, when you use it, what your roof could accommodate, how much the installation will cost and what the solar panel system could generate.

Then consider what happens to any surplus electricity and whether battery storage could improve the return.

At SPI, that’s how we approach commercial solar panel installations.

We look at the property, understand how the business uses energy and design a solar panel system around those needs.

Your roof is already there. The question is whether it could be doing more for your business.

If you’re considering solar panels for your business premises, talk to SPI. We’ll help you understand what your roof could generate, what that could mean for your energy costs and whether the investment makes sense for your business.