There can still be a strong business case for installing solar photovoltaic systems in commercial premises
Table 2: Planning for PV – some practical considerations Space requirements
Orientation, pitch and shade
Energy performance 1kWp may require a sizable 6m2 – 8m2 of panels, sited (or secured) to prevent vandalism or theft.
Modules need to face within 45° of due south for maximum effi ciency, while the optimum pitch is between 30° and 40°, with no over-shading of any of the array. Shading ruins PV performance.
PV panel performance degrades over time, but suppliers often say they expect panels to deliver around 80 per cent of original performance after 25 years. Look for robust warranties, preferably with an insurance company’s backing, as many warranties are only supported by the manufacturer.
The inverter Feed-in Tariff
Converts PV DC into AC for the National Grid. Lifetimes are typically 10-15 years, so budget for at least one new inverter over 25 years.
To even qualify for FITs, you must use installers and equipment accredited under the Microgeneration Certifi cation Scheme. In a company or partnership, FIT payments should be recorded in the accounts as with other income. This will increase taxable profi ts and increase income tax/corporation tax payable.
Permission
PV systems may need planning permission from the local authority. Most authorities are keen on PV. While there may be restrictions (notably on a listed building), the presumption is often to allow permission to install suitably designed and aesthetic PV. Installers should be able to help you with this, particularly if they have done local non-domestic work.
Grid connection
Ask your local energy supplier – as early as possible – to explain what it takes to connect the proposed system to the grid. Make sure to fi nd out about any potential ‘show stoppers’. Again, a competent installer should be able to help with advice.
what happens to everyone else’s FITs. However, companies pay tax on profi ts from FITs, as with other income. A possible fourth driver, the much-heralded ‘Green
Deal’, is aimed at both domestic and non-domestic owners. Access to the Green Deal could remove much of the up-front cost (CAPEX) of installing renewables in eligible non-domestic buildings. PAS 2030 was published in February 2012 and is effectively the guide to installing energy effi ciency and microgeneration measures under the Green Deal, and its scope includes PV. We still wait to see, however, whether reduced up-front costs under the Green Deal prevent access to FITs.
The Green Deal could reduce the upfront cost of installing commercial renewables
32
ECA Today May 2012
GDC
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