Solar panels dont just need to be installed on domestic properties. In fact, commercial buildings can be a fantastic candidates for solar panel installations. With a larger surface area, commercial or business solar panels can sometimes be larger than domestic ones, generating more power and a bigger return on investment.
Business and Commercial solar panels
There is an important distinction to be made regarding business and commercial solar panels. Commercial solar panels will be installed on large buildings, in sectors such as manufacturing and agriculture. In contrast, business solar panels are installed on small to medium sized businesses, often based in office premises.
Solar panels on a small to medium sized business can be around the same size as those used on domestic buildings, which means that the return will be around the same.
However, commercial solar panels will be much larger, generating more electricity and receiving a larger payout from the Government’s Feed-in Tariff.
What grants are available for commercial solar panels?
Although there are no grants directly to cover the installation of the solar panels, you can make a healthy profit thanks to the Government’s Feed-in Tariff. This means that your company can make money in one of two ways.
Firstly, the Government will pay for all of the electricity you produce, even if your company uses that energy. At around 4 pence per kWh produced, both business and commercial properties can stand to make a good return.
Secondly, with the export tariff, you can export all the electricity you dont use for a second payment from the national grid. Again the price of this is around 4 pence per kWh.
As a result, your solar panels will pay for themselves!
What are the tax implications?
As long as the primary purpose of your solar panels is to provide your company with electricity, then any payments or incentives you receive will be 100% tax free!
However, if you create a solar farm to generate a profit, you would need to pay tax.
For more information or advice about installing solar panels on a business or commercial property, get in touch with the experts today here at ERG.