As the world turns to renewable energy, the UK government is offering various incentives and grants to encourage businesses to install commercial solar panels. These financial aids not only make the initial investment more affordable but also help businesses reduce their energy costs in the long term. In this blog, we will explore the key government incentives, grants, and rebates available for commercial solar panel installations in the UK.
1. Feed-In Tariffs (FiT)
Although the Feed-In Tariff scheme closed to new applicants in March 2019, businesses that registered before this date continue to benefit from it. The scheme pays businesses for the electricity they generate and use, as well as for any surplus electricity exported back to the national grid. While this programme is no longer available for new installations, it remains an essential part of the financial landscape for those already benefiting.
2. Smart Export Guarantee (SEG)
The Smart Export Guarantee (SEG) scheme, which replaced the FiT, allows businesses to earn money by exporting surplus electricity back to the grid. Under the SEG, licensed energy suppliers are required to offer tariffs to businesses with solar panel installations, ensuring they receive payments for excess electricity generated. The rates vary between suppliers, so it’s essential to shop around for the best deal.
3. The Renewable Heat Incentive (RHI)
For businesses looking to integrate solar thermal systems alongside their solar PV installations, the Renewable Heat Incentive (RHI) is a significant financial support programme. The RHI provides payments to businesses that generate heat from renewable sources, including solar thermal. This scheme helps to offset the costs associated with installing and running renewable heating systems.
4. The Carbon Trust Green Business Fund
The Carbon Trust Green Business Fund offers advice, training, and funding to help small and medium-sized enterprises (SMEs) in the UK become more energy-efficient. While the direct capital contribution scheme closed in July 2019, the fund continues to provide valuable support and guidance on implementing energy-saving measures, including solar panel installations.
5. Enhanced Capital Allowances (ECA)
The Enhanced Capital Allowances (ECA) scheme allows businesses to claim 100% first-year capital allowances on investments in energy-saving equipment, including solar panels. This means that businesses can deduct the cost of their investment from their taxable profits in the year of purchase, providing a significant tax incentive to adopt renewable energy technologies.
6. Local Authority Grants
Many local authorities across the UK offer grants and incentives for businesses to install solar panels and other renewable energy systems. These schemes vary widely in terms of availability, eligibility, and the level of support offered, so it is advisable to check with your local council to see what might be available in your area.
7. Salix Finance
Salix Finance provides interest-free loans to the public sector for energy efficiency projects, including solar panel installations. This programme is designed to help public sector organisations reduce their energy costs and carbon emissions. While not directly available to private businesses, companies working with public sector clients can benefit indirectly from this funding.
Conclusion
Investing in commercial solar panels in the UK can be a financially sound decision, thanks to the range of government incentives and grants available. By taking advantage of these schemes, businesses can significantly reduce their initial investment costs, lower their energy bills, and contribute to a more sustainable future. Whether through the Smart Export Guarantee, the Renewable Heat Incentive, or local authority grants, there are plenty of opportunities for businesses to benefit from going solar.
For businesses interested in exploring these options further, Contact ProStar Energy 0331 6302225 to understand the full range of benefits and requirements associated with each incentive. Embrace the future of renewable energy and see how your business can shine with solar power.
