In 2023, the push towards renewable energy sources continues to gain momentum.
In 2023, the push towards renewable energy sources continues to gain momentum. Many businesses are exploring the option of solar panels as a way to reduce energy costs and decrease their carbon footprint.
Fortunately, various grants and incentives are available to help offset the costs of installing solar panels. As we look at the benefits of solar panels, we will also look at the grants and incentives available for businesses in 2023.
Solar panels are devices that use photovoltaic cells to convert sunlight into electricity. They are typically mounted on a building's rooftop and generate electricity by absorbing sunlight and converting it into direct current (DC) electricity. An inverter is then used to convert the DC electricity into alternating current (AC) electricity, which in turn is enough to power a business's electrical equipment.
There are several benefits of installing solar panels for businesses, including:
1. Cost Savings
Solar panels can significantly reduce energy costs for businesses by generating electricity on-site. Helping businesses save money on energy bills and reducing their dependence on traditional energy sources.
2. Environmental Benefits
Solar panels are a clean and renewable energy source, which can help businesses reduce their carbon footprint and contribute to a cleaner, greener environment. Not only that, but it shows you are willing to take steps as a business to reduce your impact on the environment. Solar panels help to demonstrate your business’ commitment to environmental causes as customers are increasingly making greener choices when they purchase.
Investing in a renewable energy source for your business can be an innovative and exciting move, as your business is committed to energy investment. The financial commitment can vary depending on several factors, such as the size of your business, the location and the current demand for electricity from the grid. Several government incentives and grants exist for companies looking to make this investment.
Whilst focus on cleaner, greener, sustainable energy has been a primary focus of the government, with the aim to achieve a net-zero emissions economy by 2050, grants and incentives are available to businesses to help offset the costs of installing solar panels.
1. ECO4 (Energy Company Obligation Scheme)
The ECO4 scheme is a government initiative that provides funding for energy-saving measures, including solar panel installations, for businesses and households in the UK. The scheme is designed to help reduce carbon emissions and alleviate fuel poverty and will run until March 2026. Eligibility of this is dependent on certain criteria and to apply for funding, you must go through your local council.
2. SEG (The Smart Export Guarantee)
The Smart Export Guarantee (SEG) is another incentive available to businesses that generate their own electricity using renewable energy sources such as solar panels. By taking advantage of this scheme, businesses can receive payments for any excess electricity they generate and contribute to a cleaner and more sustainable future.
3. VAT Reduction
In the 2022 spring statement, the government introduced a zero rate of VAT (0%) for all installations of solar panels for businesses and households in the UK.
Irrespective of whether you are the proprietor of a small, medium or large business, incorporating solar energy into your operations is a viable option. Our team can assist you in taking the necessary steps to promote environmental sustainability while also reducing your carbon footprint.
For more information and guidance on choosing the correct solar PV system for your business, please contact one of our experts on 01530 249 752 or visit our website.