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Commercial Feed-in Tariffs and Commercial Solar PV Systems

Commercial solar PV systems are, like domestic systems, eligible for the Government’s Feed-in Tariff scheme. However, the rates for larger systems differ slightly and depending on the size of your commercial solar PV system and how much electricity you wish to export into the National Grid, you may require special permissions.

There are several different bands based on the size of the commercial solar PV system. Currently the amounts you receive through commercial feed-in tariffs decrease for systems greater than 4kW, 10kW and 100kW. Whilst commercial feed-in tariff levels decrease for larger systems, the cost of the install also decreases to around £2,500 to £3,500 per kW (depending on the size of the system).

For details on the returns you can expect on different sizes of commercial solar PV systems, our solar PV calculator makes estimates based on the current commercial feed-in tariff levels. However, payments for large commercial solar PV systems are currently under review and may decrease later this year.

For more information on installing a commercial solar PV system for your business, contact us today on 0116 2987467.

What are Commercial Feed-in Tariffs?

Commercial solar PV systems can receive the same feed-in tariff that domestic solar PV systems receive. The feed-in tariff is a Government-funded scheme which aims to encourage property owners to invest in solar electricity (photovoltaic) systems by offering financial incentive. Through commercial feed-in tariffs, business owners benefit in the following ways:

  • The Generation Tariff – this is a set amount you receive for each unit of renewable electricity your commercial solar PV system generates. You receive this regardless of whether the electricity is used in your business or not. However, the amount new entrants to the scheme will receive is due to decrease each year from April 2012.

  • The Export Tariff – this is an extra amount you receive for each unit of electricity you export into the National Grid.

  • Energy Bill Savings – this is a huge draw for many business as commercial solar PV systems tend to be larger than their domestic counterparts and so can save more money on energy bills. This can be a huge saving for businesses which use a lot of electricity in their daily processes and have the space for a large-scale commercial solar PV system.

  • Guaranteed for 25 years  - both the Generation Tariff and the Export Tariff are guaranteed for 25 years through a legal contract with your energy company.

For a typical commercial solar PV system between 10-100kW, the typical annual payment from commercial feed-in tariffs is around £2,250 per 10kW. That’s without counting any savings your business makes by using its own electricity rather than buying it in from an energy company.

Although you will have to pay tax on the payments you receive this can still be significantly greater than any repayments for loans. We can also help you to find low interest loans and other schemes to help with the initial investment. 

For more information on installing a commercial solar PV system for your business, contact us today on 0116 2987467.

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