As businesses around the world seek sustainable and cost-effective energy solutions, solar power has no doubt emerged as a leading choice. Beyond just generating energy for immediate use, though, many enterprises can benefit from selling excess solar power back to the grid.  

This practice can easily become another source of income and also promotes a sustainable energy ecosystem. Here, we’ll take a closer look at the benefits of selling back solar power to the grid and why your business should sell commercial solar energy.  

So, what exactly does it mean to sell back solar power to the grid? Most of the time, you’ll generate more electricity than what your building needs. Instead of keeping that excess energy, there’s an option to sell it back to the grid (a public electricity network).  

Selling back energy to the grid allows you to reduce your energy costs and becomes another source of income. There is one system used to manage this process:  

• Net metering: allows excess energy that has been generated to be fed back to the grid. Businesses will receive compensation for this excess energy in the form of credit.  

This is to incentivise selling solar back to the grid, making it a viable option for businesses.  

The Smart Export Guarantee (SEG)

The government has created a scheme for businesses that want to sell back solar power to the national grid. This scheme is known as the Smart Export Guarantee and was launched in January 2020.  

Businesses that implement renewable energy systems and that meet certain criteria are eligible for this scheme. When you sign up for a SEG tariff, you’ll receive compensation for each unit of electricity that is contributed towards the grid. These tariffs can either be fixed or variable depending on the supplier.  

The amount you earn will depend on several factors, such as the number of solar panels, microturbines, or hydro systems you utilise, the energy they produce, geographical factors, and the rates offered by your energy supplier.

Benefits of selling solar back to the grid

Now, let’s discuss all the benefits of selling back solar to the grid, because, as you can imagine, there are many.  

Financial incentives and savings

One of the most obvious benefits of selling solar back to the grid is the financial incentives and savings that come with doing so. Businesses are more likely to engage in this by receiving credits or payments based on the amount of electricity they supply back to the grid.  

The systems used to navigate selling solar back to the grid effectively turn your solar installation into a source of continuous income, offsetting installation and maintenance costs and improving your return on investment (ROI).  

In some regions, additional incentives like tax credits, rebates, and grants are also available, further enhancing the economic appeal of solar energy and being able to sell the power back to the grid.  

Not to mention, owning property that generates its own sustainable energy will immediately increase the value of the property. So, having solar panels installed on your commercial property will create many financial opportunities in the future if you decide to sell.  

Environmental impact of selling back solar power to the grid

Usually, commercial buildings have more roof space available, which is ideal for larger solar panel installations. As a result, your business’s carbon footprint will be dramatically reduced.  

Also, when businesses sell energy back to the grid, they contribute to reducing greenhouse gases by decreasing the dependency on fossil fuels. The reputation of your business will automatically be enhanced by showcasing your company’s commitment to sustainability. Customers who value sustainability will be driven to your company and brand.  

Energy independence and security

By selling back solar power to the grid, you’ll be gaining energy independence. This means that you won’t need to rely on the grid for energy during peak seasons or when there are shortages in your local community. This stabilises the local energy supply, bringing forth overall energy security.  

Strengthening the local economy

Another benefit of selling solar power back to the grid is that it stimulates the local economy by creating jobs in solar installation, maintenance, and grid management. This will automatically grow the solar power industry which will lead to cost reductions in solar technologies as there will be more technological innovations within the industry.  

Technical and regulatory considerations

To effectively sell solar power back to the grid, businesses need to understand and comply with local regulations, which may include zoning laws, connection standards, and caps on how much energy can be fed back into the system.  

Businesses must also invest in the necessary equipment such as smart metres and possibly storage solutions to manage the flow of electricity to and from the grid.

Challenges to consider when selling back solar power to the grid

While the benefits of selling solar power back to the grid are significant, there are also challenges to consider, such as:  

• Fluctuating buyback rates

• Changes in energy policies

• Initial cost of setting up a solar system  

However, with proper planning and consultation with energy experts, like our team at Sustain Commercial Solar, these hurdles can be effectively managed.

The decision to sell back solar power offers a win-win scenario for businesses and the environment because it aids in controlling energy costs and generating revenue while supporting the global transition to renewable energy sources.  

As technology advances and more favourable regulations are established for businesses, the future of solar power is bright and promising. The benefits of selling solar power back to the grid are considerable, so make sure you do so today.  

‍

For more information on installing commercial solar panels for your business, get in touch with our team of experts today at 0333 880 0891.  

‍