Reduce Energy bills and carbon foot print with Ireland's leading Solar Photovoltaic supplier
CubicM3 design, procure and safely install high quality Solar PV systems across the island of Ireland.
Commercial Solar Panels - Is your business energy efficient?
Renewable energy and solar power for commercial properties
Big or small, your business can benefit from solar energy. Rising electricity costs and good roof space provided by commercial properties make solar a sensible investment. Whether your business is looking to save money, reduce its carbon footprint or secure its future energy supply, CubicM3 Solar provides expert commercial solar installations with proven high yielding solar panels.
What is a commercial solar PV system?
A Commercial solar Photovoltaic system refers to the placement of solar panels on business premises to utilise the energy from the sun to generate electricity. Depending on the size of the installation, the electricity generated can meet a large portion, if not all, of the business’ energy needs and can go a long way to reducing energy bills. The benefits of a solar Photovoltaic installation are also applicable to other sectors, such as public institutions, schools and blue light services.
Solar panels are mounted on the roof of a building, adjacent land or even nearby water bodies and from there integrated into the business electrical network. The photovoltaic system, also known as a solar PV system, transforms the energy from the sun into electricity, which then powers the building’s energy requirements. The solar panels generate electricity throughout the year, although they will naturally generate more in the summer, due to higher levels of irradiance and longer periods of sunlight.
Are commercial solar panels right for my business?
The majority of businesses' electricity use is during the day which is why companies can significantly save money on their electricity bills. What's more, solar panels have no moving parts, so ongoing maintenance costs are minimal. High users of electricity can benefit the most. Commercial businesses’ can now avail of more economically competitive solar panel technology and garner a higher return on investment. Most commercial installations can see a return on investment for installing solar pv panels of approx. 4-9 years. Even small businesses with lower energy use can still see huge savings.
CubicM3 design, procure and safely install high quality Solar PV systems across the island of Ireland.
Commercial Solar Panels - Is your business energy efficient?
Renewable energy and solar power for commercial properties
Big or small, your business can benefit from solar energy. Rising electricity costs and good roof space provided by commercial properties make solar a sensible investment. Whether your business is looking to save money, reduce its carbon footprint or secure its future energy supply, CubicM3 Solar provides expert commercial solar installations with proven high yielding solar panels.
What is a commercial solar PV system?
A Commercial solar Photovoltaic system refers to the placement of solar panels on business premises to utilise the energy from the sun to generate electricity. Depending on the size of the installation, the electricity generated can meet a large portion, if not all, of the business’ energy needs and can go a long way to reducing energy bills. The benefits of a solar Photovoltaic installation are also applicable to other sectors, such as public institutions, schools and blue light services.
Solar panels are mounted on the roof of a building, adjacent land or even nearby water bodies and from there integrated into the business electrical network. The photovoltaic system, also known as a solar PV system, transforms the energy from the sun into electricity, which then powers the building’s energy requirements. The solar panels generate electricity throughout the year, although they will naturally generate more in the summer, due to higher levels of irradiance and longer periods of sunlight.
Are commercial solar panels right for my business?
The majority of businesses' electricity use is during the day which is why companies can significantly save money on their electricity bills. What's more, solar panels have no moving parts, so ongoing maintenance costs are minimal. High users of electricity can benefit the most. Commercial businesses’ can now avail of more economically competitive solar panel technology and garner a higher return on investment. Most commercial installations can see a return on investment for installing solar pv panels of approx. 4-9 years. Even small businesses with lower energy use can still see huge savings.
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Financial savings
One of the biggest reasons for making the decision to install solar is for financial gain, and there are big gains to be had. At current installation costs, a solar PV system delivers electricity at a rate of around 9 Cent per kWh including Operations & Maintenance costs. This compares with the current grid supplied rate of approximately 13c per unit.
In many cases your commercial solar PV system will return enough benefit to achieve a positive cash flow within 60 months when you finance the capital outlay.
Your solar PV investment will quickly cover its' outlay, reduce your Carbon Footprint, and when your finance term completes, provide you with a sizeable portion of your energy needs for free.
A fantastic win:win for your business.
Who should consider installing commercial solar panels?
Solar makes seriously good sense for any business or campus (university, college, school, hospital or business park etc), with a decent roof (or plot of land) and a long-term (10 years plus) intention to stay in their premises. Ideally the business should own the freehold of their premises, or should have a long-lease over the property.
The lifetime cost per kWh of solar electricity is now 9c per kWh... this compares to 13 - 15c for electricity purchased from the grid.
In the right business, the system will more than pay for itself, should be financeable if necessary and will provide all of the following benefits:
· Inflation linked returns of 10% plus from bill savings alone.
· Grid independence - depending on space and load, solar will typically provide anywhere between 10% and 60% of the annual electricity requirement, increasing by around 20% with battery storage.
· Protection against rising electricity prices.
· Improvement in Energy Performance Certificate (EPC) rating.
· Reduced carbon footprint.
· Building Regulations compliance for new builds.
· Reliable, low maintenance technology.
· A positive response from employees, visitors, customers, suppliers and shareholders.
Costs, subsidies and payback time
Rooftop solar panels usually cost between €850 and €1500 per kWp installed, depending on roof access costs, roof covering and roof pitch (flat, sloping etc). A 50kWp system will cost anywhere between €43,000 and €60,000 plus VAT.
A kWp typically gives a saving of around €105 per year, so €5,250 for a 50kWp system, giving a payback time of between 6 and 10 years. The panels will last 25 years or so (with possibly one inverter replacement expected during this time).
The % return over 20 years is usually in the order of 9-18% (IRR%).
Most of the return comes in the form of a reduced electricity bill - for a typical business, each kWh generated by the solar system is worth around 13c if used on site.
The lifetime cost per kWh of solar energy cost is remarkably low, around 7c.
On average over 25 years (taking into account degradation of panels), a kWp will generate between 750kWh and 900kWh a year. That's around 20,000 kWh over the life. So the cost per kWh of solar energy is only around 5.5p per kWh.
The grid cost is 13c for the typical business, and rising and set to rise a little bit more when Ireland reduced its dependence on coal fired power stations.
Financing solar for business: cash neutral / cash positive from the start
The only issue with solar for business is that the business is effectively installing its own mini power plant, and pays for 25 years' worth of solar electricity up front. Even though solar only costs around 9c per kWh, this is only realised over the life of the system, and, in any event, there are always other projects competing for the cash.
However, given that the payback time of most energy generation and reduction projects is much lower than the expected system life, projects can be financed such that the overall cashflow profile is positive, or at least neutral, in the early years.
Luckily we work in an industry which is a leader not only in technological innovation, but also in financial innovation. Over the years we have developed relationships with many finance partners providing different forms of energy-efficiency finance. All have one aim: to help businesses and public sector organisations to implement sustainable business strategies that deliver a competitive advantage at no up-front cost.
There are a couple of finance options to be considered:
Lease finance
A finance lease is a way of providing finance – effectively a leasing company (the lessor or owner) buys the asset for the user (usually called the hirer or lessee) and rents it to them for an agreed period.
A finance lease is defined in Statement of Standard Accounting Practice 21 as a lease that transfers “substantially all of the risks and rewards of ownership of the asset to the lessee”.
The lessee is in a broadly similar position as if they had bought the asset.
The lessor charges a rent as their reward for hiring the asset to the lessee. The lessor retains ownership of the asset but the lessee gets exclusive use of the asset (providing it observes the terms of the lease).
Note that writing down allowances are not available. Instead, lease payments (comprising capital and interest) are treated as a revenue deduction. VAT is payable on the rental payments, not the purchase price.
The lessee will make rental payments that cover the original cost of the asset, during the initial, or primary, period of the lease. So the present value of the payment stream equals the acquisition cost of the asset. Once all payments have been made, the lessor will have recovered its investment in the asset.
At the end of the lease
What happens at the end of the primary finance lease period will vary and depends on the actual agreement but the following are possible options:
Why CubicM3 Solar?
We undertake solar PV projects all across Ireland.
We have a proactive approach and take pride in our ability to combine bespoke solutions with best value for money. We have seen continued growth in solar PV installations both across the new build sector, and by end-users (schools, universities, corporates and public sector sites).
All of our work is undertaken in-house, this allows us to pay attention to the detail and deliver technical excellent solutions at a very reasonable cost. Having installed systems for almost 10 years, we know most equipment suppliers and can recommend the best technology for each client.
We have a first class in house team of engineers. They love a challenge and enjoy designing bespoke solutions, whether using building integrated technology (e.g. solar glass, solar roof tiles), customised triangular panels, or off-grid technology.
Finally we provide full O&M support for the life of the system.
Our services include:
· Free consultation and quotation for projects.
· Free completion of tender documents.
· In depth feasibility studies and system design.
· Technology integration – on-grid and off-grid solar, storage, EV charging
· Installation using in-house solar installers, servicing and maintenance.
· Financing support to help you transform your energy use at no upfront cost.
· CPD training.
One of the biggest reasons for making the decision to install solar is for financial gain, and there are big gains to be had. At current installation costs, a solar PV system delivers electricity at a rate of around 9 Cent per kWh including Operations & Maintenance costs. This compares with the current grid supplied rate of approximately 13c per unit.
In many cases your commercial solar PV system will return enough benefit to achieve a positive cash flow within 60 months when you finance the capital outlay.
Your solar PV investment will quickly cover its' outlay, reduce your Carbon Footprint, and when your finance term completes, provide you with a sizeable portion of your energy needs for free.
A fantastic win:win for your business.
Who should consider installing commercial solar panels?
Solar makes seriously good sense for any business or campus (university, college, school, hospital or business park etc), with a decent roof (or plot of land) and a long-term (10 years plus) intention to stay in their premises. Ideally the business should own the freehold of their premises, or should have a long-lease over the property.
The lifetime cost per kWh of solar electricity is now 9c per kWh... this compares to 13 - 15c for electricity purchased from the grid.
In the right business, the system will more than pay for itself, should be financeable if necessary and will provide all of the following benefits:
· Inflation linked returns of 10% plus from bill savings alone.
· Grid independence - depending on space and load, solar will typically provide anywhere between 10% and 60% of the annual electricity requirement, increasing by around 20% with battery storage.
· Protection against rising electricity prices.
· Improvement in Energy Performance Certificate (EPC) rating.
· Reduced carbon footprint.
· Building Regulations compliance for new builds.
· Reliable, low maintenance technology.
· A positive response from employees, visitors, customers, suppliers and shareholders.
Costs, subsidies and payback time
Rooftop solar panels usually cost between €850 and €1500 per kWp installed, depending on roof access costs, roof covering and roof pitch (flat, sloping etc). A 50kWp system will cost anywhere between €43,000 and €60,000 plus VAT.
A kWp typically gives a saving of around €105 per year, so €5,250 for a 50kWp system, giving a payback time of between 6 and 10 years. The panels will last 25 years or so (with possibly one inverter replacement expected during this time).
The % return over 20 years is usually in the order of 9-18% (IRR%).
Most of the return comes in the form of a reduced electricity bill - for a typical business, each kWh generated by the solar system is worth around 13c if used on site.
The lifetime cost per kWh of solar energy cost is remarkably low, around 7c.
On average over 25 years (taking into account degradation of panels), a kWp will generate between 750kWh and 900kWh a year. That's around 20,000 kWh over the life. So the cost per kWh of solar energy is only around 5.5p per kWh.
The grid cost is 13c for the typical business, and rising and set to rise a little bit more when Ireland reduced its dependence on coal fired power stations.
Financing solar for business: cash neutral / cash positive from the start
The only issue with solar for business is that the business is effectively installing its own mini power plant, and pays for 25 years' worth of solar electricity up front. Even though solar only costs around 9c per kWh, this is only realised over the life of the system, and, in any event, there are always other projects competing for the cash.
However, given that the payback time of most energy generation and reduction projects is much lower than the expected system life, projects can be financed such that the overall cashflow profile is positive, or at least neutral, in the early years.
Luckily we work in an industry which is a leader not only in technological innovation, but also in financial innovation. Over the years we have developed relationships with many finance partners providing different forms of energy-efficiency finance. All have one aim: to help businesses and public sector organisations to implement sustainable business strategies that deliver a competitive advantage at no up-front cost.
There are a couple of finance options to be considered:
Lease finance
A finance lease is a way of providing finance – effectively a leasing company (the lessor or owner) buys the asset for the user (usually called the hirer or lessee) and rents it to them for an agreed period.
A finance lease is defined in Statement of Standard Accounting Practice 21 as a lease that transfers “substantially all of the risks and rewards of ownership of the asset to the lessee”.
The lessee is in a broadly similar position as if they had bought the asset.
The lessor charges a rent as their reward for hiring the asset to the lessee. The lessor retains ownership of the asset but the lessee gets exclusive use of the asset (providing it observes the terms of the lease).
Note that writing down allowances are not available. Instead, lease payments (comprising capital and interest) are treated as a revenue deduction. VAT is payable on the rental payments, not the purchase price.
The lessee will make rental payments that cover the original cost of the asset, during the initial, or primary, period of the lease. So the present value of the payment stream equals the acquisition cost of the asset. Once all payments have been made, the lessor will have recovered its investment in the asset.
At the end of the lease
What happens at the end of the primary finance lease period will vary and depends on the actual agreement but the following are possible options:
- the lessee sells the asset to a third party, acting on behalf of the lessor
- the asset is returned to the lessor to be sold
- the customer enters into a secondary lease period
Why CubicM3 Solar?
We undertake solar PV projects all across Ireland.
We have a proactive approach and take pride in our ability to combine bespoke solutions with best value for money. We have seen continued growth in solar PV installations both across the new build sector, and by end-users (schools, universities, corporates and public sector sites).
All of our work is undertaken in-house, this allows us to pay attention to the detail and deliver technical excellent solutions at a very reasonable cost. Having installed systems for almost 10 years, we know most equipment suppliers and can recommend the best technology for each client.
We have a first class in house team of engineers. They love a challenge and enjoy designing bespoke solutions, whether using building integrated technology (e.g. solar glass, solar roof tiles), customised triangular panels, or off-grid technology.
Finally we provide full O&M support for the life of the system.
Our services include:
· Free consultation and quotation for projects.
· Free completion of tender documents.
· In depth feasibility studies and system design.
· Technology integration – on-grid and off-grid solar, storage, EV charging
· Installation using in-house solar installers, servicing and maintenance.
· Financing support to help you transform your energy use at no upfront cost.
· CPD training.