Pros and cons of commercial solar panels

solar panel financing

As businesses look more and more for sustainable and cost-effective energy solutions, solar panels are becoming a popular choice. However, like any major investment, you’ve got to weigh the benefits and drawbacks before making a decision.

Let’s break down the pros and cons of installing solar panels for commercial use.

Whether you’re a small business owner considering your first set of panels or a corporate decision-maker looking to expand your renewable energy portfolio, this guide is designed to help you navigate the sunny (and sometimes cloudy) landscape of commercial solar energy.

Pros of commercial solar panels

Commercial solar panels bring key benefits, including substantial energy cost savings and the potential to generate income by selling excess power.

They also bolster a company’s image by being environmentally conscious, requiring minimal maintenance, and offering a reliable energy solution.

With technology driving efficiency and reducing costs, the investment in solar panels promises a strong return.

Renewable and abundant energy source

Solar energy is a game-changer for businesses looking to go green and cut costs. It’s a type of energy that never runs out and is available everywhere, making it a reliable and eco-friendly choice.

A major pro for solar energy is its sustainability. It doesn’t pollute the air or contribute to climate change, which means businesses can use it without harming the planet.

In short, solar energy offers businesses a clean, endless power supply. It’s an investment in a cleaner planet and lower energy bills, positioning companies as leaders in sustainability and innovation.

Major reduction in energy bills

Installing solar panels is a smart move for businesses looking to save money and even make a bit extra.

By generating your electricity with solar panels, you’ll see your energy bills drop – a major pro if you don’t want to rely on the grid as much.

Plus, the more sunlight your business area gets, the bigger your savings. And with energy prices on the rise, locking in lower energy costs now means you’ll save even more in the future. It’s a straightforward way to keep your business’s expenses down and a big pro for solar panels.

And if your solar panels produce more electricity than your business uses, you can also sell this extra power back to the electricity grid. Thanks to programmes like the Smart Export Guarantee in the UK, businesses get paid for any surplus energy they generate.

This not only helps offset the cost of your solar panels but also turns them into a source of income.

Operating mainly during the day? You’ll likely have surplus power to sell, especially on weekends or holidays when your business is closed.

Low operational and maintenance costs

Solar panels stand out in the commercial world for their simplicity and cost-effectiveness post-installation. They demand very little maintenance, making them a hassle-free option for businesses.

Designed to endure, solar panels rarely need more than an occasional cleaning to remove dust or leaves, ensuring they keep efficiently converting sunlight to energy.

With warranties lasting 20-25 years, solar panels are a long-term investment that continues to pay off. These warranties guarantee performance, promising that the panels will efficiently produce electricity throughout their lifespan.

In essence, solar panels offer businesses a low-maintenance, cost-effective energy solution. Their long warranties and minimal upkeep needs mean businesses can enjoy significant savings, making solar panels a practical choice for a sustainable and financially sound future.

Financial incentives and grants

The upfront cost of solar panel installation might seem daunting at first. Thankfully, there’s good news: many financial incentives and grants are available to help reduce the initial expense, making solar power more accessible and financially attractive for businesses.

Tax Breaks and Cash Rebates

Businesses can enjoy significant tax deductions through credits that lower the amount of tax owed, based on the cost of installing solar panels. Additionally, cash rebates can instantly reduce the upfront cost, making the investment in solar energy even more appealing from the start.

Ongoing Income through Energy Sales

Programmes like the Smart Export Guarantee pay businesses for the surplus energy they generate and feed back into the grid. This creates a continuous income stream, turning your solar panels into not just a cost-saving, but also a money-making asset.

Grants and Direct Funding

Specific grants are available to cover a portion of the solar installation costs directly. These grants are especially beneficial for smaller businesses, providing financial support to embrace renewable energy without the heavy financial lift.

Selling Renewable Energy Certificates

By generating solar energy, businesses can earn certificates that can be sold or traded, offering another avenue for income or to offset the cost of green initiatives.

Special Loans and Financing

To further ease the financial burden, some governments and financial institutions offer special low-interest loans for solar installations. The savings from your lower energy bills can often cover these loan payments, making it a financially sound decision.

Disadvantages of commercial solar panels

While solar panels offer many benefits, it’s important to consider the potential cons of solar panels before deciding to invest.

Here are some of the key cons associated with solar panels.

High initial cost

When you think about getting solar panels for your business, one of the first things to consider is the money you’ll need to spend upfront.

The cost of your solar panel system depends on two key factors: the system’s size to meet your energy needs and the quality of the panels.

Larger systems for higher electricity generation tend to cost more, and opting for top-quality, efficient panels may have a higher initial price but offer long-term benefits.

The installation of solar panels can also affect the cost. Sometimes, it can be a bit tricky, especially if your roof isn’t in the best condition, or if it’s not positioned ideally for sunlight.

Long payback period

When you get solar panels, it usually takes a while to save as much money as you spent on them. But here’s the catch: if you move or sell your house before that time is up, you might not get all your money back. That’s because potential buyers might consider how much time is left before the panels start saving them money.

To make things easier, some folks choose to pay for their solar panels over time instead of all at once. But this can stretch out the time it takes to break even.

Still, it’s important to remember that solar panels offer other pros like lower energy bills, independence from the grid, and helping the environment.

So, when deciding on solar panels, think about your long-term goals and what’s best for your property.


Solar panels are like permanent fixtures in your business. Once they’re installed, they stay put and can’t be easily moved. This means they become part of the property, just like the roof or walls.

So, if you decide to move offices before you’ve saved enough money through energy savings to cover the cost of the panels, you might not get all your money back.

Embrace commercial solar with Path Energy today!

Now we understand solar panels a bit better, it’s clear that they offer substantial benefits, from reducing energy bills to enhancing property value and contributing to a cleaner environment.

Be sure to consider factors like the upfront cost, the non-transferability of panels, and the payback period based on your circumstances.

For those ready to embrace the pros of solar energy, Path Energy is your trusted partner. Our commercial solar panels offer cost-effective, sustainable solutions that can transform your business’s energy consumption.

Beyond solar panels, we provide a range of renewable services, including energy tariff optimisation, battery storage solutions, and more.

With Path Energy, you gain access to an in-depth suite of services to optimise your energy efficiency and savings.

13 February 2024
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