Spring is finally in the air! This means that it’s time to start thinking about what we can do to reduce our commercial energy bills this season.
One of the most effective ways is by incorporating solar power into your business. Not only is it a sustainable and environmentally friendly option, but it can also help you to save a significant amount of money off your energy bills.
In this post, we will explore how solar power can reduce your commercial energy bills in Springtime. We’ll also take a closer look at the benefits of solar power for businesses, how it works, and the potential savings that you can expect.
So, whether you are a small business owner or a large corporation, read on to learn how solar power can help you to save money this Spring.
Using Solar Power to Reduce Your Commercial Energy Bills
Solar energy can help reduce commercial energy bills during the spring in several ways:
- Energy generation.
- Net Metering.
- Tax incentives.
Let’s talk about these in more detail.
During the spring, there are longer daylight hours and more sunny days, which means that solar panels can generate more electricity. By generating their own power, your business can reduce its dependence on the grid and thus lower your energy bills.
Net Metering/Feed-in Tariff
Our commercial solar PV installations are connected to the grid, which means that any excess energy generated by the solar panels can be sold back to the utility company for credit. This is known as net metering and it can help your business to offset your energy bills.
This year non-domestic applicants in Ireland will be able to apply for a Clean Export Premium (CEP) feed-in tariff. This will be specifically to support installations between 6.1kW and 50kW.
The CEP feed-in tariff will be set at €0.135/kWh and fixed for 15 years. Eligible volumes will be capped at 80% of generation capacity to encourage self-consumption.
Financial Supports & Tax Incentives
As a result of the commitment for climate action, governments in the UK and Ireland are offering tax support and incentives for businesses that make the switch to solar energy. These include tax credits, accelerated depreciation, and grants. By taking advantage of these incentives, your business can reduce the initial cost of installing a solar PV system and lower your energy bills over the long term.
What Financial Supports are Available in Ireland for Solar Installations?
In Ireland, for example, your company can claim costs and expenditure to reduce the amount of corporation tax that it pays. This is called a capital allowance. It can’t be used against business entertainment or capital expenditure i.e. buying or maintaining land, buildings or equipment. However, capital allowance does include:
- Plant and machinery.
- Motor vehicles.
- Industrial buildings.
- Transmission capacity right.
- Computer software.
- Specified intangible assets.
In the case of your solar installation, this allowance applies to industrial buildings and can be claimed at a rate of 4% over 25 years for the majority of industrial buildings.
As well as this, there is an Accelerated Capital Allowance (ACA). Your company can claim 100% of this, in the first year the asset is used in the business.
Who is eligible for the Accelerated Capital Allowance?
Any business and unincorporated company “that incurs expenditure on eligible energy-efficient equipment for use in their trade. The equipment must be owned by the business. Equipment that is leased, let or hired will not qualify for the allowance” (Revenue.ie)
This equipment must also be new and there is a minimum amount of expenditure required in order to claim. This amount depends on the specific product. The full list of the products that do qualify can be viewed on the SEAI ACA information page.
Example of Accelerated Capital Allowance for Solar PV
|Class of Technology||Description||Minimum Amount|
|Building Energy Management Systems||Building Energy Management Systems Designed to Achieve High Levels of Energy Efficiency||€5,000|
Micro-generation Support Scheme
The Micro-generation Support Scheme (MSS) for non-domestic applicants was first launched in September 2022. This is a one-off capital grant and is paid in the same year that the system is installed, for installations ≤6kWp.
As the table below indicates, non-domestic applicants like businesses, farms, schools, and community buildings can apply for the micro-generation support scheme, for installations that aren’t bigger than 6kWp. Successful applicants can claim the amount as domestic customers i.e. up to €2,400.
What incentives are available in the UK, for solar installations?
In the UK, there are also incentives for investing in energy efficient, low or zero carbon technology for your company. When you buy a MarVal Power Solar system, you can claim capital allowances which will reduce your tax bill.
Overall, by generating your own electricity and taking advantage of tax incentives, your business can significantly reduce energy bills during the spring and throughout the year.
It is important to note that the exact savings will depend on factors such as the size of the solar photovoltaic PV system, your business energy use and local electricity rates.
In summary, solar power offers a wide range of benefits for your business, from cost savings and energy independence to environmental sustainability and a positive public image.
If you want to reduce your energy bills while enhancing your environmental and financial performance, our solar power solutions are a smart and sustainable choice for your business.
As more businesses recognize the benefits, we can expect to see a continued shift towards clean and renewable energy sources. This will not only help the environment but also businesses, like yours, to thrive in an increasingly competitive marketplace.
One response to “How to Use Solar Power to Reduce Your Commercial Energy Bills During Spring?”
[…] more customers who value sustainability, by doing so. Additionally, you can benefit from the incentives and tax credits that governments and regulatory bodies are offering to businesses that adopt solar energy, making […]