You may have heard of solar PV – perhaps you even know other businesses that are using it. However, you might be wondering if solar PV is relevant for your business. It is worth considering that various factors affect the overall costs and tariffs of solar PV systems.
Is solar PV right for my business?
At the outset, the best way to determine if your business could benefit from solar PV is by asking a few simple questions:
- Are you based in an area with good irradiation (solar resource)?
- Do you have a good quality, spacious roof or available open land near to your business?
- Do you use the bulk of your energy during the day?
- Are your reliant on diesel generators to keep your operation running during power cuts or because of lack of grid access?
If you answered “yes” to any two of the above, solar PV is definitely worth considering for your business. The aspects mentioned above are explored in more detail below.
1. Good solar irradiation
It goes without saying, but solar PV performs better under conditions with great solar irradiation. If you are based in Africa, you are lucky: Africa has some of the best solar irradiation in the world, so it is generally a no-brainer. However, there are a few factors that might influence the quality of irradiance, which could affect the overall PV system size and thus the cost.
- Weather: Weather can influence the quality of the irradiance. Things like extreme heat and humidity can affect how well solar modules perform, making irradiance quality vary in different geographic locations.
- Pollution: pollution in the form of smoke and gases or particles can lower irradiation; it can also collect on solar modules and reduce their efficacy.
- Shading: Factors such as large buildings, highways and trees can shade roof areas during the day, causing the solar PV to stop producing. If your solar PV engineering firm is reputable they should be able to carry out an extensive shading analysis.
2.Roof space and quality
Rooftop solar PV is often the most cost-effective solution for Commercial and Industrial businesses. As such, the size of your business’s roof, including the type of roof and if it is structurally sound, is an important factor to consider when scoping out the feasibility of solar PV.
If your roof is not suitable for mounting solar panels, it is important to consider if there is land nearby that could house a ground-mounted solar PV solution. All of these factors can affect the cost, and therefore the feasibility, of solar for your business.
3.Energy Demand and use
An essential factor to evaluating the efficacy of a solar PV system is energy demand and use. Two factors come into this: the business’s peak power (kVA) requirements, as well as its electricity use (kWh). If the business is a high energy consumer, especially if it runs 7 days a week, the costs of solar will likely be much cheaper. However if the business has large amounts of electricity usage at night, for example, it might make the cost of the system more expensive.
4.Diesel generator usage
In Africa, many business operations rely on diesel generators in order to keep the power on, either due to weak or unreliable electricity grids, or because they have no access to the grid. In general, electricity generated by diesel is very expensive, making a solar PV microgrid, including batteries, a great way to save and cut back on this.
Procuring solar: your options
If you are convinced that solar PV sounds like a good intervention, remember that the following options exist to procure solar PV for your business:
- Buy solar energy directly – enter into a solar PPA in order to use solar PV electricity without any capital expenditure. The solar PV system belongs to SOLA, and you simply pay for the electricity that you use. The longer the term of the PPA, the lower the tariff over the system’s lifespan (20 years).
- Build a solar PV system – purchase a solar PV system that your business will own, and simply pay for annual maintenance and upkeep. SOLA will design and construct the PV system for you, ensuring that it performs as predicted, and will maintain the system going forward.
Is solar feasible for my business?
If you spend over R100 000 (US$ 7000) on electricity per month, fill in some basic information in our Solar Feasibility Tool. We will evaluate the efficacy of solar for your business free of charge, and provide you with a few simple options to go forward, should you wish to proceed.