Solar energy policy changes make photovoltaics more attractive for commercial buildings.
Solar photovoltaics (PV) present an attractive commercial opportunity for owners and tenants of commercial buildings. By installing solar power, building owners can fix the price they pay for electricity for 25 years and make dramatic savings worth millions of pounds.
For example, Footprint Zero installed 188kWp of solar PV for a client, which will save them 823 tonnes CO2 and £1,437,791 over 25 years.
But now, three recent solar energy policy changes by the government have made investing in solar power even more appealing for UK businesses:
- Expenses for capital expenditure:
In November 2023 the government’s technical consultation made ‘full expensing’ for solar power systems a permanent feature. This change allows organisations to deduct 50% of the cost of solar panel installations from their profits before paying Corporation Tax. The change is a significant benefit for businesses looking to invest in solar photovoltaics by radically reducing upfront costs and the payback period of solar power. - Scrapping of planning permission for large installations:
The government has also released new planning rules to boost solar rollout and slash energy bills. Under the new rules, businesses that generate more than 1MW of electricity will no longer require planning permission, eliminating delays and saving time and money in the approval process. Previously, installing solar panels required building owners to go through the planning system and wait over eight weeks for a response. So the new changes will make it less costly and faster to get solar PV installed. The government is also keen to promote the installation of solar on land which has already been developed so, for example, the changes make it cheaper and easier to install solar solar carports, as long as they are over ten metres away from people’s homes. - Faster grid connections:
Ofgem have implemented changes which aim to speed up the grid connection process. Previously, securing a new or upgraded grid connection caused one of the main delays for building owners wanting to switch to solar power. The changes introduced by Ofgem have been designed to stop speculative applications, known as ‘zombie projects’ from jamming up the queue to connect to the grid. This is great news for building owners that are interested in installing solar panels which means their projects will get connected sooner, and deliver the financial savings which solar provides faster than before.
Taken together, these three policy changes, to capital expense provision, planning permission and the grid connection process have cut back the ‘red tape’ surrounding large commercial solar power systems and made solar power more attractive than ever before.
In order to help businesses without the required capital, Footprint Zero also offers fully funded solar installations to help accelerate the UK’s progress towards net zero. We will cover the entire cost of designing, installing and maintaining solar on your buildings to provide you with fixed price power for 25 years via a Power Purchase Agreement (PPA). There really has never been a better time to install solar and reduce the whole-life carbon impact of your buildings.
Contact us now to find out more…