As energy costs continue to rise and environmental concerns grow, forward thinking UK businesses are increasingly turning to renewable energy solutions to reduce expenses and enhance sustainability. One of the most effective ways to achieve this is by installing solar photovoltaic (PV) systems and energy storage solutions.
At Gregor Renewables, we’ve helped businesses transition to a more environmentally friendly energy solution resulting in not only financial savings, but energy security, and a whole host of other benefits. Read on to find out the potential benefits for your business.
Cut Energy Bills and Reduce Operational Costs
Simply put, installing solar PV panels allows businesses to generate their own electricity, significantly reducing reliance on the National Grid. This leads to lower energy bills and protection against unpredictable energy price increases. By producing your own energy, your business can enjoy long-term savings and increased financial stability. By adding in one of our solar energy storage batteries you can also capture and store excess solar energy and use it when you do need it – think a sunny weekend when you are closed!
Offset National Insurance and Business Rates Increases
With recent increases in National Insurance contributions and business rates, companies are facing higher operational costs than before, which is having a real impact, especially on small and medium sized businesses. Investing in solar PV can help offset these rising expenses by reducing your energy spend and taking advantage of government incentives. Additionally, commercial properties with renewable energy installations may benefit from business rates exemptions, further easing financial pressures.
Government Incentives and Tax Benefits
The UK government offers several financial incentives to encourage the adoption of renewable energy, making solar PV an even more attractive investment:
- Smart Export Guarantee (SEG): Businesses can earn money by selling excess electricity back to the grid, creating an additional revenue stream. You can find out more about that here:
- VAT Reduction: Solar PV installations benefit from a 0% VAT rate (valid until the end of March 2027), reducing initial installation costs.
- Business Rates Exemption: The removal of business rates on green technologies, including solar panels, enhances the financial benefits of solar investment.
Legal and Policy Context: Moving Toward Net Zero
While there is currently no blanket legal requirement for all UK businesses to be carbon neutral, there is growing pressure from both government policy and market expectations. The UK Government has committed to reaching net zero carbon emissions by 2050, and this target influences regulatory and financial frameworks. Larger businesses are already subject to environmental reporting obligations such as the Streamlined Energy and Carbon Reporting (SECR) and Energy Savings Opportunity Scheme (ESOS). By installing solar PV now, you are on the front foot in case policies change and are moving towards business expectations in terms of reducing your carbon footprint.
Companies that move proactively toward carbon neutrality often gain competitive advantages, particularly in supply chains, public procurement, and investor relations. Installing solar PV is a sure step businesses can take to align with national goals and stakeholder expectations.
Improve Energy Independence and Stability
If the last few years are anything to go by – global uncertainty is becoming the norm! Generating your own electricity provides greater energy security and reduces dependency on external suppliers. This protects businesses from energy price volatility and supply chain disruptions, ensuring more predictable budgeting and operational planning.
Enhance Corporate Social Responsibility and Brand Image
Switching to solar energy demonstrates a commitment to sustainability and reducing your company’s carbon footprint. Not only does this align with corporate social responsibility goals, it also strengthens your brands reputation, attracting environmentally conscious customers, investors, and partners.
Increase Property Value and Attractiveness
Installing solar PV can enhance the value of commercial properties by making them more energy-efficient and cost-effective to operate. Businesses that own their premises can benefit from increased asset value, while tenants can enjoy lower utility costs, making solar-equipped properties more attractive.
How to fund your Solar PV Project
You’ve seen the benefits of installing Solar PV, but how do you fund it? The good news is, there are many financial incentives which aim to reduce the financial barriers for businesses looking to adopt solar energy. This is a constantly changing market so it’s worth doing your research.
- Barclays Green Loans for Business: Offers discounted interest rates for businesses investing in eligible green assets, such as solar panels. They also provide green commercial mortgages for energy-efficient buildings with an EPC rating of B or above.
- NatWest Green Loans: Aims to help eligible UK businesses finance assets like solar panels, electric vehicles, or heat pumps on commercial premises.
- Co-operative Bank Renewable Energy Funding Scheme: Provides up to 100% loan funding for renewable energy projects, including solar panel installations, to improve business sustainability and energy efficiency.
- Commercial Green Grants: There are some grants available for businesses – all with their own criteria. In the West of England, small and medium sized business and organisations can apply to West of England Growth Hub before the end of 2025.
- You can also search here on the gov.uk website.
- Green Loans for Business: Many leading banks are offering loans to eligible UK businesses for assets like solar panels, electric vehicles, and heat pumps, subject to eligibility.
As you can see, the installation of solar PV systems offers UK businesses a range of benefits, from significant cost savings and government incentives to enhanced brand reputation and energy independence. At Gregor Renewables, we’ve been advising on and installing solar PVs for almost 20 years. We will work with you to design and installing a bespoke solar solution tailored to your business needs.
Contact us today to discover how solar PV can benefit your business and take the next step toward a more sustainable and cost-effective future.