Benefits of Installing Solar Panels for Factories, Warehouses and Industrial Buildings

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Solar energy is taking over the world and for good reason!

Harnessing the power of the sun has been one of the biggest challenges for humanity, but with newer battery and solar capturing technologies, we now have a blueprint for how to energise the world using safe, clean, and renewable energy.

This is especially great for warehouses and industrial businesses. Ever since the Industrial Revolution, humanity has only increased its carbon footprint. So much so, that we now have grave problems such as climate change and the overuse of natural resources.

However, solar energy aims to reduce and maybe even one day reverse this damage. If you are looking for a reliable way to power your factory and want to be on the side of sustainability, then this guide is just for you.

Read below to learn more about the benefits of installing solar panels for factories, warehouses, and industrial buildings.

SOLAR ENERGY ADOPTION FOR COMMERCIAL USE

Solar panels, also called photovoltaic (PV) panels, are constructed using several “cells” made from a semiconductor material such as silicon. The property of this material is such that it generates an electric current when sunlight shines on the cells.

This electricity is then stored or used directly after converting it to Alternative Current (AC). It is important to note that solar energy is collected as Direct Current (DC), but the world is powered through AC.

To remedy this issue, solar panel systems use an ingenious device called an inverter that converts the direct current to AC so that it can be used by the grid.

Every type of business can enjoy the benefits of solar energy and with the technology being specially geared for high storage capacities, several industries are already switching or planning to switch to solar in the near future! This includes office buildings, schools, medical facilities, retail businesses, manufacturers, warehouses, government organisations, and especially factories.

The biggest caveat of using solar energy is that it requires real estate. The larger your electricity requirement, the more panels you will require. A convenient way to address this issue is to install solar panels on rooftops. These panels can also be suspended using an adequately built frame which means that you can use your roof and get shade from the panels above!

This configuration also allows the panels to be installed on factory premises. Since factories take up a large surface area, factory owners can choose to install the panels on the roof of the factory or even in a separate area.

Here are some common places for solar panels for businesses:

  • Rooftops with adequate and weight-bearing frames,
  • Open land on the premises for ground-mounted panels,
  • Large parking lots,
  • Solar awnings for smaller commercial solar systems (perfect for providing shade and utility)

In the UK, the best placement for maximising the energy collected by solar panels is facing south and tilted at a 35-degree angle from the horizontal.

Positioning is just one part of maximising efficiency. To truly reap the benefits of a solar system installation, you will need to call in a professional and experienced solar installation company like Calder Electrical to handle the placement and installation.

By opting for a professional installation company, you can not only get the most out of your system, but you can also ensure its longevity and efficiency over time.

BENEFITS OF INSTALLING SOLAR PANELS FOR FACTORIES, WAREHOUSES, AND INDUSTRIAL BUILDINGS

Now that you know what solar panels are and how they can be used in a commercial setting, let’s take a look at how these systems can benefit a factory.

To make the benefits easier to understand, we will divide them into different segments. Here are the ways solar panels can benefit factory owners:

Economic Benefits

  1. Reduced Energy Costs: factories require a lot of power and since the Industrial Revolution, we have solely relied on fossil fuels to power large industries. However, with heavy-duty and advanced solar panels, factory owners can now reap the benefits of renewable energy and cut down on their electricity bills.

Factories can choose to divide their total load on the grid and the solar system. This can be beneficial for very large industries that don’t want to immediately invest in an end-to-end solar panel system. By shifting some of the load to solar panels, you can cut down on the total electricity cost and get an effective Return on Investment (ROI) on the installation cost of the system.

  1. Tax Incentives and Rebates: With the world switching over to solar energy for sustainability, governments are pushing incentives for residential and commercial users to install solar panels. One of these incentives is in the form of tax breaks and rebates.

Governments of developed and even developing nations are offering tax credits, grants, and rebates to businesses that invest in solar energy. This way you can not only get economic benefits from the installation, but over time, you can save even more money in taxation.

  1. Fixed Energy Costs: this is cost accounting 101. Factories operate on variable and fixed costs. However, you will never hear about fixed electricity costs since electricity is highly variable and depends on usage and fluctuating energy costs. With solar panels, you can get a fixed cost on your electricity bill.

The use of solar energy can hedge factory owners against energy prices which can allow them a more predictable budget for every quarter leading to a more efficient cash flow.

  1. Increased Property Value: Solar panels have a direct and indirect impact on the property value. Solar energy is extremely trendy right now and properties with solar panels are seen as more valuable.

The installation also affects the business indirectly as it can boost the brand image and help the factory in its efforts towards sustainability – a concept that is highly sought after by modern stakeholders.

Environmental Benefits

  1. Reduced Carbon Footprint: This is perhaps the biggest benefit of installing solar panels at factories. As mentioned above, factories have relied on fossil fuels which got the job done, but at the cost of an increase in the carbon footprint for the business.

Solar energy, on the other hand, is clean, safe, and renewable which means that your factory will produce little to even no greenhouse gasses.

  1. Sustainability Initiatives: take a look at any modern business’s portfolio and you will find a separate page for sustainability. Consumers are becoming more aware of climate change and demand businesses to take action to reduce their carbon emissions. By utilising solar panels, factories can increase sustainability and help in the transition towards a low-carbon economy.
  2. Energy Dependence and Costs: energy prices are at an all-time high due to global economic factors. This change not only impacts the costs but also the pricing of the products. By switching to solar, factories can reduce their dependence on the grid and control their overall costs.

Operational Benefits

  1. Reliability and Low Maintenance: Solar panels have minimal moving parts and solely rely on electrical components that are designed to last a very long time.If you get your system installed by a professional installation company like Calder Electrical, you can reap the benefits of minimal maintenance and longevity. Fun fact: a properly installed solar system can last over 25 years!
  2. Energy Reliability: For factories in remote or developing countries where electricity outages are common, factory owners can get reliability by switching over to solar energy. By installing an adequate solar system, you won’t have to solely rely on the grid to power your factory.
  3. Scalability: This is perhaps the biggest benefit of solar systems. They are extremely scalable and can be built on in any way you like. For example, you can start with a 60:40 ratio where 60% of your electricity comes from the grid, and 40% comes from the solar system.

Over time, you can change this ratio by installing more panels on the premises. This is how many industries are tackling switching over to solar energy. Since the initial installation cost for solar systems is high, the idea is to shift the electrical load over time to absorb additional costs.

Brand-Image Benefits

  1. Enhanced Corporate Image: as mentioned above, having separate initiatives just for sustainability is not only appreciated by the public but also expected. Modern consumers are becoming more aware of climate change and its impact on future generations. This is why consumers are shifting their focus to companies with larger carbon footprints.

By going with a reliable solar system, you can not only reap the economic benefits, but you can also boost the brand image of your company by being an environmentally responsible business.

COST OF SOLAR PANEL INSTALLATION FOR FACTORIES, WAREHOUSES, AND INDUSTRIAL BUILDINGS

The average cost for commercial solar panel installation can be around £16,000 to £70,000 for a small to medium-sized setup. However, the total cost is heavily dependent on your usage. This is why it is important that factory owners go with a professional installation company.

A professional electrical company like Calder Electrical can help work out a sustainable long-term plan just for you. This way you can work with the company to figure out a system that can best suit your budget.

Don’t worry, since solar systems are modular, you can always build on the current system to add more panels and further reduce your costs and carbon footprint down the road!

Here is a breakdown of the average cost of solar systems based on electricity usage:

  1. Small Commercial Solar Systems (Cottage or Small Factories/Warehouses) (10-50 kW):
    • Cost per kW: £900 – £1,200
    • Total Cost: £9,000 – £60,000
  2. Medium Commercial Solar Systems (Best for Most Factories/Warehouses) (50-250 kW):
    • Cost per kW: £800 – £1,000
    • Total Cost: £40,000 – £250,000
  3. Large Commercial Solar Systems (Large Factories) (250 kW – 1 MW):
    • Cost per kW: £700 – £900
    • Total Cost: £175,000 – £900,000
  4. Very Large Systems (Very Large Factories) (1 MW and above):
    • Cost per kW: £600 – £800
    • Total Cost: £600,000 and up

Additional Solar System Costs

Solar system costs are divided into two segments. The first segment is the cost of panels and energy generation (discussed above). The second is the storage costs.

Here is a breakdown of the typical storage/battery costs:

  1. Battery Storage Systems for Solar Systems: £500 – £1,000 per kWh storage capacity. This cost is for lithium-ion batteries which are the go-to and recommended type of battery for solar systems. They provide a reliable storage solution and are excellent for long-term storage.

 

  1. Maintenance and Monitoring: The maintenance costs for solar systems are typically only for cleaning the panels and monitoring the battery and electrical components. The annual costs can range from £500 to £2,000 depending on system size and complexity.Most professional companies like Calder Electrical provide a thorough and budget-friendly maintenance contract. This contract is essential for solar systems installed on factory premises because it allows the system to run at maximum efficiency and without interruption.

An important point to consider is that you can also offset this cost through different means. The first is by applying for grants and tax breaks (discussed above). The second is to earn from the solar system by selling excess energy back to the grid via the Smart Export Guarantee (SEG).

This program is excellent for factories that have variable operational capacities throughout the year. When the factory isn’t operational at full capacity, you can choose to sell the excess energy and gain back some of the cost of the installation over time. However, factory owners will have to apply for an SEG and have a smart meter to measure how much energy they are exporting back to the grid.

SOLAR PANEL INSTALLATION COST FACTORS

Here are some of the factors that affect the cost of installation for a solar system at any factory:

System size:

The size of the system is directly proportional to the cost. So, if your business requires a lot of power, then you will need a system to match the power usage. Ideally, it is recommended that factory owners go with a ratioed approach where they offset the grid dependency by installing an adequate solar system and then later build on the system by installing additional solar panels.

The type of panels:

Solar panels come in many different types and each type has different costs. For example, Monocrystalline Solar Panels are the most expensive but also the most efficient. They are best for large factories that want to futureproof themselves. Polycrystalline Solar Panels are the next best thing and are cheaper than monocrystalline panels. They provide less efficiency but are excellent for long-term energy storage. Similarly, Thin-Film Solar Panels are even cheaper and lighter but offer less efficiency. We recommend that you speak to a professional installation company like Calder Electrical to figure out the best panels for your factory.

Location and labour costs:

Where you install the panels also has an impact on the installation cost. For example, if you install the system on the roof of the factory, you will have to bear additional labour and infrastructure costs compared to a grounded system.

Additional components:

Additional components such as an additional solar panel battery storage system can rack up the price of the installation. However, a counterpoint to this is that you can also save more money down the road and get even more benefits by installing a robust backup system for your factory.

If you are interested in installing solar panels and solar battery storage solutions for your factory, Calder Electrical can offer both and help you choose the best system according to your needs and budget.

CONTACT CALDER ELECTRICAL

Calder Electrical Services provides a wide range of solutions to help you play your part in making the world a more sustainable place.

If you wish to have solar panels installed on your residential or commercial property, our experts can conduct a site visit to determine your requirements and propose the best type of solar system for your needs.

We also offer solar battery storage installation so that you can minimise any wastage of the energy you create. This will help lower your energy bills and make you more independent from the grid.

We have been providing electrical services to residential, commercial, and industrial properties for over 40 years and are specialists in all aspects of electrical installations, maintenance, and testing.

All our work is fully insured and meets the current regulations and standards set by the NICEIC. Also, all the notifiable work is signed off by the local authorities.

Contact us here or call us at 0800 612 3001 to get in touch with our professional electricians for more information on the different types of solar panels and battery storage options.

Photo by Jeroen van de Water on Unsplash