When considering solar energy for your business, the key question often is: What kind of return on investment (ROI) can I expect with solar? At Shawton Energy, we make the transition to solar simple by offering fully funded solutions, meaning no upfront Capex or Opex costs. This allows your business to benefit from solar energy without any financial burden from the start.
In 2023, we partnered with Lazard Asset Management, which has allocated significant capital specifically for UK solar projects. This partnership enables us to fund solar installations in-house, allowing your business to immediately start saving on energy costs with no initial investment.
In this article, we’ll break down how to calculate ROI for commercial solar panels, focusing on key factors like energy savings, tax incentives, commercial solar payback period in the UK, and how our no-cost model works
What Is The Payback Period For Commercial Solar Panels?
Solar power provides immediate savings by reducing your reliance on the national grid. For example, our project with Princes Group is set to save them £200,000 annually. With energy prices continuing to rise, producing your own electricity protects you from future price increases.
To help estimate your potential savings, try our Solar Calculator. By entering your business’s dimensions, you can get an instant estimate of how much switching to solar could save.
How Power Purchase Agreements (PPA) Work
Our fully funded solutions are structured as Power Purchase Agreements (PPA). With a PPA, you don’t pay for the installation or maintenance of the solar system; instead, you only pay for the electricity you use, often at a lower rate than grid power. This allows your business to benefit from solar energy with minimal financial risk while locking in predictable energy costs for years to come.
Tax Incentives and Grants For Solar Panels
Government schemes like the Smart Export Guarantee (SEG) allow businesses to sell excess electricity back to the grid, further boosting ROI. Additionally, tax incentives, such as Capital Allowances, let you write off a portion of your solar installation costs, speeding up your payback period.
When Will You See A Return From Commercial Solar Panels?
The payback period refers to the time it takes for energy savings to cover the initial investment. Typically, this period ranges from 5 to 7 years, but with our fully funded PPA model, you won’t have upfront costs to recover. This means the savings you generate from the start go directly to your bottom line.
For instance, our project with Uniroyal Global will allow them to recover their investment in under 5 years, after which they’ll enjoy decades of free energy.
How Do You Calculate Your Solar Panel ROI?
A simplified formula to calculate solar ROI is:
ROI (%) = (Lifetime Savings – Upfront Cost) / Upfront Cost x 100
Since Shawton Energy’s solutions involve no upfront costs, your ROI starts from day one. Our Solar Calculator can help give you a personalised estimate based on your business’s energy usage and location.
Start Saving Without Upfront Costs
At Shawton Energy, we aim to make solar energy accessible and profitable for businesses. Our fully-funded Power Purchase Agreements, backed by Lazard Asset Management, eliminate the need for upfront capital. You can focus on long-term energy savings and sustainability from the moment the system is installed.
To find out how much your business can save, use our Solar Calculator and contact our team for more information on our no-cost solar solutions.
