Published
July 31, 2024
Renewable energy has been a popular topic over the last few years and solar panel installation has seen a significant increase across both domestic and commercial uses. How much power does a solar panel system produce though and how does this match up to the electricity needs of different facilities?
Let’s explore this in detail.
Looking at the power a commercial solar panel system can produce depends on the type of system, size of the system, location and efficiency of the panels.
In general though, a 100 kilowatt ‘peak’ power (kWp) solar panel system in the UK generates around 95,000 kWh per year on average. In order to find out the specific power output for the solar panels you choose for your commercial operations, it is best to speak to the solar panel company you will be purchasing from.
You may wish to design your solar panel system so that close to 100% of the electricity generated is utilised within your business to provide you with the swiftest payback. You may alternatively wish to generate as much solar energy as possible and export the energy you don’t use at time of generation to maximise carbon offsets, improve CSR/ESG, and gain greater long-term financial returns.
Different commercial sectors have varying electrical requirements, but taking a look at the annual usage in 2022 across different sectors in the UK:
You can find more statistics on Energy Trends: UK Electricity on the GOV.UK website.
The amount of power you can, or indeed need to, export from solar panels will depend on how much energy you require for your operations. Factors such as solar generation peaks and seasonal variations also come into play, so it’s important that your export contracts are flexible to meet these changing requirements.
The Smart Export Guarantee (SEG) is a government-backed initiative whereby electricity suppliers pay small-scale generators (up to a capacity of 5MW) for low-carbon electricity when they export back to the National Grid. Electricity suppliers will determine the rate, but for example, if a site is exporting 40,000 kWh annually at an average rate of 8p per kWh, annual earnings would be £3,200.
The Smart Export Guarantee is just one of the mechanisms by which a company can export its unutilised solar power and, at Noble Green Energy, we work in partnership with L&C Utility to offer comprehensive energy import and export contracting services. This way, you can maximise financial benefits whilst also improving energy efficiency and supporting grid stability.
Each kWh of solar energy produced and used or exported helps reduce carbon emissions. Solar Energy UK states, “Research has shown that the average carbon payback period for solar panels is 1-4 years. This means that over their lifetime, typically 40 years, each panel will generate zero-carbon and zero-pollution electricity for decades after any carbon emitted in its production has been paid back.”
Therefore, you will be reducing carbon emissions and tackling the climate crisis whilst saving money on your electricity costs. Solar PV has an annual ROI of around 25-35%, particularly when used to reduce your grid demand. This is because electricity import costs per kWh are typically far higher than achievable export rates so the greater your percentage of self-consumption, the better and faster your returns.
We’ll consult with you to fully understand your business drivers, present you with appropriate options for the best solar panel system for your situation and manage the entire process for you. We are able to supply solar PV systems to businesses in a wide range of industries, including agricultural solar PV and commercial/business solar PV.
If you would like to find out more about how much power you can export from solar PV solutions and how much carbon you can save, read about our case studies or get in touch with Noble Green Energy today.