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When we think about solar energy, most people tend to gravitate towards the high initial costs of the system, and while solar energy indeed requires considerable investment initially, it can also significantly provide long-term benefits that can help businesses reduce operating costs.
Solar energy has come a long way from being used in small portable appliances to being widely used in residential and commercial spaces. The technology allows people to harness the unlimited power of the sun and generate clean, renewable, and safe electricity.
With rising electricity costs and fuel prices, it is estimated that power costs alone will take up a significant portion of a business, especially businesses in heavy industries. On top of that, we also have problems with generation and transmission using legacy infrastructure.
According to the Association for Decentralised Energy, more than half of the energy produced in the UK is wasted which, to give perspective, is equivalent to the energy produced by 37 nuclear plants! This results in businesses paying around £60 million in unnecessary bills every year, putting an unnecessary burden on both the business sector and the economy.
These are just some of the reasons why businesses are moving towards solar. Read below to learn more about the role of solar energy in reducing business costs.
Businesses with ample free space around the premises are the best candidates for installing solar panels. These businesses can not only use up the extra space that they are already paying for, but they can also generate a steady stream of income from it as well!
Solar systems work using a collection of electrical equipment like panels, wiring, inverters, and of course, batteries. The system is designed to collect and store energy during the day, and when needed, disperse the energy to the business.
Businesses that run on solar don’t have to rely on the grid and the problems of transmissions in legacy systems. In the manufacturing industry, any downtime because of power disruption can result in significant losses. Solar energy reduces these risks by shifting the reliance of factories and offices off the grid.
This is why you will usually see solar panels installed on rooftops, car spaces, and other secluded areas around businesses that constantly require power for IT, manufacturing, or even general use.
Perhaps the biggest benefit of solar systems is that they are entirely modular. Businesses don’t have to go all in on solar initially. To save costs, they can divide the installation into several rollouts. Using this strategy, businesses can install a few panels and collect data to share with shareholders on the potential for savings.
The system can then easily be upgraded by adding more panels, improving battery storage, and installing a higher-capacity invertor. This way, businesses can quickly recuperate the installation cost and begin enjoying the benefits of the system while reducing overall costs.
Every business is on a mission to reduce its operating costs to increase its bottom line. This has become even more pertinent in the modern business world where companies are using various cost-saving strategies to either boost their profitability or increase their market share.
But how does solar power help in increasing the bottom line and the business itself?
Solar systems have become efficient enough to generate more electricity than what is needed daily or what can safely be stored on batteries. The leftover energy is sold back to the grid at a predefined tariff. This allows solar system owners to not only save on electricity costs but also pay back the initial cost of the system, thereby increasing its overall Return on Investment (ROI).
Another benefit of solar systems is that they hardly ever break down and don’t contain any moving or mechanical parts. This makes them easier to maintain, unlike large generators that need to frequently be checked for oiling, engine, or generation issues.
In contrast, solar panels only require a cleaning of the panels after every few months. A technician provided by the installation company can visit the premises and finish the maintenance tasks within a few hours, depending on the complexity and scale of the system.
Furthermore, solar systems are also being integrated with intelligent software systems. Some can also be equipped with Artificial Intelligence software that can significantly boost the overall efficiency of the system.
These modern systems are usually also connected to the internet, which means that they transmit maintenance data to a centralised secure server where technicians can constantly monitor the efficiency of the system and send out a technician when needed.
Solar systems also have an indirect effect on the sales of the business. According to a consumer report by business magazine Entrepreneur, customers are more inclined to do business with companies that go for solar power.
The reason is simple: our environment is being burdened and with energy requirements soaring high every year, it has become apparent that we must shift our focus from fossil fuels that create hazardous byproducts that affect global warming and a myriad of other environmental problems to cleaner energy.
This is why you will see many companies proudly sharing data about how they are being more sustainable and environmentally friendly.
The modern consumer is becoming more aware, and everyone wants a safer and cleaner earth for our children. This is why many people actively seek out businesses that are doing their part in making the world a better place for future generations.
This effect is so prominent that studies have shown a reasonable shift in purchase decisions where consumers tend to shop more at brands that are cognizant of the environment and have sustainability initiatives.
When you combine the direct and indirect benefits of generating green energy, low maintenance, and the ability to sell excess energy back to the grid, you get a robust and fully automated system that can profoundly have a long-term impact on business operating costs.
Here are some industry-standard tips that can help businesses get even more out of their solar system and further help them reduce business costs:
Solar systems may seem straightforward, and compared to traditional energy generation systems they are, but they still require highly professional installation.
From sourcing materials and planning the layout and placement of the panels, to building the right infrastructure, there are a lot of things that go into a proper installation.
This is why businesses must always go with professional installation companies, like Calder Electrical, to get the most out of the system. Even a small mistake as placing the panels at the wrong angle can cause significant inefficiencies in the system.
Professional installation companies plan ahead and use their expertise and experience to build a system for businesses that can last a long time and provide significant benefits. Professional installers also provide maintenance contracts where they automatically take care of the system without the business having to spend any time or additional resources.
The best way to become environmentally friendly and increase the system’s efficiency is to go for regular maintenance contracts. These contracts are provided by professional installation companies like Calder Electrical. The benefits of these contracts are immense since they maintain the overall effectiveness of the system.
If you want to consistently have reduced business operating costs, you must conduct regular energy audits that look at all aspects of your business and analyse where changes can and should be made to make the system even more efficient. This audit can also be performed throughout the business to highlight areas of improvement. It involves assessing where the energy is being used, how much of it is used, and any areas of potential wastage.
Businesses are going towards sustainability by highlighting the importance of saving electricity and by implementing policy changes. These factors not only help lower the overall power requirements of the business but can also facilitate reducing operating costs.
Something as simple as installing motion-sensing lights that turn off when no one is in the room can save quite a lot of energy, especially for businesses that are situated in large spaces.
Turning off extra appliances and maintaining current electrical installations such as fixing wiring issues and faults and replacing faulty components can dramatically increase power efficiency and decrease the overall load on the solar system.
According to the Energy Saving Trust, a laser printer left on standby can cost over £18 over 12 months whereas a desktop computer can waste about £2.50 worth of energy. These costs may not seem like much, but when you add them up to the total cost of all appliances across the workplace, then you will certainly have a problem.
On average, offices waste £6,000 every year by leaving appliances on during the night and on the weekends and bank holidays. By making simple policy tweaks and implementing automated systems, businesses can easily save up to 20% of their energy costs.
To put that into perspective, a 20% cut in energy costs can equate to an increase in the bottom line. Keep in mind that solar systems work on a simple principle: the power input must equate or be more than the output, i.e., the usage. If you reduce usage, the system can end up generating more energy than the business needs, and this energy can be sold off, increasing the overall ROI of the system.
LED lighting is the future, they are cleaner, require no maintenance, and can last a long time without requiring a lot of power. Upgrading from traditional bulbs to LED lighting can help businesses save around 80% on their electricity bills!
LED bulbs convert 95% of the total energy into light and the remaining 5% into heat which is hardly noticeable. In comparison to fluorescent lighting, most of the energy is converted into heat making them reach a temperature of about 179.2 F compared to LEDs 87.2 F.
Since LEDs are highly efficient, they can easily replace the light of a 50-watt bulb using a 5-watt LED. Modern offices, especially ones that run night shifts require these changes to save electricity. The overall power burden of lights alone can put a strain on your energy requirements and make the solar system less efficient.
Keep in mind that in business, everything must be measured by its cost and if you are looking to truly minimise your business operating costs, then you will have to make these small changes that will have a big impact in the long term.
Click here for a detailed guide on the best LED office lighting and how to choose the right one for increased power efficiency in the workplace.
As mentioned above, solar systems are designed to be modular. We recommend that you install a basic system at your premises as a proof of concept and then scale the system as required. This strategy can help you divide the cost of the installation over the years and can also help your business become more sustainable every year.
Even if you end up installing a higher capacity system than you actually need, you will likely begin to earn from the excess energy within the first month of installation. For the best experience, always consult a professional installation company. Calder Electrical has a dedicated surveying team that can visit your business premises and conduct an audit.
This audit can then be used to determine the right type of system for your needs. The audit will not only highlight areas of improvement, but the technician can also help you plan a sustainable rollout plan that will greatly improve your business costs.
Smart solar systems are designed with efficiency in mind. These systems use advanced software algorithms to determine the best time for storing, dispersing, and selling electricity. For example, if your area offers a better tariff at different times of the day, the system can determine your exact power needs during that time and manage the load efficiently. The system will automatically sell back electricity in a way where you either offset the power cost of electricity coming from the grid or make a direct profit from the excess generation.
These systems are expensive, but for businesses, they provide the convenience of having full control of the system via a mobile application. The application can highlight how much power the business is using throughout the day and if there are any areas of attention or faults in the system. By getting real-time data, you can easily figure out the sweet spot for your business and tweak the system to greatly reduce your electricity costs.
In summary, solar energy plays a crucial role in reducing business operating costs. With more and more people shifting towards solar, it has become apparent that this technology is here to stay and the businesses that adopt it early are to benefit more in the long run.
Furthermore, the overall benefits of solar power are also immense. Since customer preferences are also shifting towards businesses with sustainability in mind, now is the best time to make the shift and keep ahead of the curve!
From an expert viewpoint, it is best to consult with a professional company that can guide you on the best energy-efficient methods tailored for your business.
At Calder Electrical Services, we offer a wide range of energy-saving services that include:
We have been undertaking electrical work since 1976 and have plenty of experience in the field. The work done by our qualified electrical engineers is fully insured and meets the high standards set out by the NICEIC. Contact us here or call us on 0800 612 3001 to talk to our industry experts right away!
Photo by Scott Webb on Unsplash
