Is Commercial Solar PV worth the investment?
Whatever be the size of your business, you too can benefit mainly by using solar energy. The rise in electric cost and good roof space makes Commercial Solar PV a practical investment. Furthermore, Solar PV's are gaining popularity as a mainstream alternative energy source.
Why opt for Commercial Solar PV?
1. Cheaper Alternative:
Solar energy is no longer in its infancy. It has developed and is at the cusp of being coined as a mainstream energy source. According to a report by IRENA, solar energy has continued to grow despite the pandemic with 127 GW of new installations.
In certain countries adopting solar has proven to be a much economical option. Moreover, advancement in technology has helped improve solar panel output. The cost of manufacturing is also showing a decrease of 5 to 10 per cent per year. Finally, the cost and technology combined are proving to be a significant threat for traditional power and oil companies.
Solar PV is ideal for commercial use as most businesses operate in the mornings and require electricity during daylight hours. Therefore, installing Solar PV will reduce the need to draw electric output from the grid. Also, Commercial Solar PV provides other benefits in the form of quick installation and zero noise pollution.
2. Increasing Energy Costs:
The rising cost of electricity is another major determinant to make the switch to Solar PV. Ireland, when compared to other countries in Europe, has one of the highest electricity costs.
The return for Commercial Solar PV installation is between seven to eight years. Furthermore, the expected life span of a Commercial Solar PV is over 25 years. Comparing the above points with the rise in electric cost will make Commercial Solar PV's an attractive option for businesses.
One other benefit of installing Commercial Solar PV is that it helps protect businesses from rising electric costs, which provides a competitive advantage, especially to businesses dependent on electricity.
3. Managing Carbon Footprint:
Safeguarding the environment has been a major talking point in the past decades. Businesses worldwide are being targeted for the high amount of carbon emissions that they release into the atmosphere. However, companies by generating their solar energy can help reduce their carbon footprint. Moreover, adapting to a renewable energy source (solar energy) can increase the firm's popularity from a commercial standpoint. Therefore, clients will be inclined to invest or partner with environmentally conscious firms.
4. Commercial Solar PV Grant:
The SEAI provides several grants for firms willing to make the shift to solar energy. Among the host of grants offered by the SEAI, the BEC (Better Energy Communities) stands out. The grant provides support of up to €28 million. The grants aim to provide energy savings to homes, communities and private sector organizations through upgrades across building types.
ACA (Accelerated Capital Allowances) is a commercial tax incentive aimed at businesses paying corporation tax, non-corporates and sole traders. Furthermore, the incentive allows them to write off 100% of the purchase value of the equipment against the profit in the first year. However, an important point to be kept in mind is that only the Solar PV registered under the Triple E Register can qualify for the tax incentive.
The EXCEED grant is another option for businesses looking for support in the Solar PV spectrum. Moreover, the grant scheme provides 30% grant funding. Finally, to know more about the different types of grants or incentives available click here.