Why should I be concerned about energy prices?

With the UK National Grid being supported heavily by gas and other fossil fuels, often imported from overseas, times of high demand mean higher carbon emissions and higher prices. This volatility means prices are often uncontrollable and variable, so, even if a commercial building is on a fixed tariff, year-to-year prices can change drastically. In addition to the increasingly expensive fossil fuels powering a large portion of our grid, investment in large-scale renewable generation to reach Net Zero and improvements to the National Grid to cope with changing demand patterns are set to be passed on to the consumer, again in the form of higher unit prices. Businesses operate on stability and informed future trends, so it makes little sense to have faith in such a dynamically priced system. 

Understanding PV systems

PV (Photovoltaic) panels convert energy from the sun into usable electricity. In around an hour, enough solar energy hits the earth’s surface to power the entire global community for an entire year. We would only have to tap into a tiny fraction of that total to satisfy our individual needs. Although the UK isn’t renowned for its sunny credentials, the heat of the environment isn’t what determines the success of a solar system, but the amount of light present.  

Read more about how much solar exposure the UK receives in our blog, ‘Is solar power worth the investment for non-domestic buildings?’ 

Once installed, a rooftop PV array will absorb energy any time the sun is present. This presents a unique advantage for commercial or industrial properties. During daytime hours, when there is usually lots of activity, there is typically daylight — creating solar generation to power those activities. Unlike domestic properties, which usually draw large amounts of energy in the evening when the sun isn’t shining, the overlap between solar presence and activity in industrial properties is much higher. 

Something to always implement before or during a PV system’s installation is efficiencies in the property – whether incorporating daylighting to reduce energy use, or increasing the thermal efficiency of a building envelope. Every kWh of energy saved improves the operational cost and carbon impact of a space.

How can PV systems help my property?

Generating energy onsite allows building operators to offset their usage partially or completely — even creating income from selling generated energy back to the National Grid. Even better, those properties which implement battery storage of some form (whether chemical batteries or hot water systems) can store energy at times of high production and low demand, to use at times when energy draw is higher. This reduces energy use from the National Grid, reducing overall load at peak times and reducing costs. Generation combined with energy storage also presents the opportunity for properties to protect themselves from power cuts or unpredictable power supply, shielding productivity from unstable grid conditions. 

The scale and type of system will vary from property to property — considering system size, orientation, storage and maximum power draw. For example, a warehouse will have extremely different project requirements to a data centre or the site of a product manufacturer. However, what stays constant is the aim of reducing, completely offsetting or net exporting energy. No matter how much energy reduction from the National Grid is achieved, cost savings will present themselves.  

With solar panels, batteries, and electrical system prices at an all-time-low, and energy prices at an all-time-high, payoff periods for the capital investments on these systems are lower than ever, and are continuing to fall.