Knowledge Hub

Solar Frequently Asked Questions (FAQs)

What is solar energy and how does it work?

Solar energy is a clean, renewable energy source that is generated by capturing the sun’s energy using photovoltaic panels. Solar panels convert sunlight into electricity, which can be used to power homes and businesses.

How does commercial, roof-top solar energy panels benefit businesses?

Commercial solar energy can help businesses in a number of ways. Some of the main benefits of commercial solar include:

Cost savings: One of the main benefits of commercial solar is the potential to save money on electricity costs. Solar energy systems can generate electricity at a fixed cost over their lifetime, which can help businesses reduce their energy bills.
Sustainability: Solar energy is a clean, renewable energy source that does not produce greenhouse gas emissions. By using solar energy, businesses can reduce their carbon footprint and improve their sustainability profile.
Energy independence: Solar energy systems allow businesses to generate their own electricity, which can increase energy independence and reduce reliance on the grid.
Improved reliability: Solar energy systems can provide a reliable source of electricity, as they are not subject to the same types of disruptions that can affect the grid (such as storms or other natural disasters).
Financial incentives: Many governments offer financial incentives to encourage the adoption of renewable energy, including solar energy. These incentives can take the form of tax credits, grants, or other forms of financial support, and they can help businesses offset the upfront cost of solar energy systems.

How does the price of residential electricity in the UK compare against the cost of electricity generated by solar?

According to the Gov.uk website, the price of residential electricity in the UK has increased by 74% between 2021 and 2022. The current trend is likely to continue in 2023 as well as energy support schemes are either reduced or phased out. Whereas the cost of solar itself, and as a result, the cost of electricity generated from solar has been declining consistently.

Its estimated the current residential electricity tariff (fixed tariff) is approximately 34p, while the cost of electricity generated from solar is significantly lower at approximately 7.5p. However, this price can change depending on several different factors, some of those are listed below:

Size of solar panels
Efficiency of solar panels
Building roof-top features such as orientation, slope, shade etc
Location of solar panels that can impact the amount of solar irradiance it receives
The type of mounting and other hardware associated with those solar panels
Any government incentives available in the market

How does the price of commercial electricity in the UK compare against the cost of electricity generated by solar?

According to data from the Federation of Small Businesses (FSB), small business have have experienced a 424% rise in gas costs and 349% increase in electricity since February 2021. Whereas the cost of solar, and as a result, the cost of electricity generated from solar has been declining consistently.

Its estimated the current commercial electricity tariff (fixed tariff) is approximately 32p, while the cost of electricity generated from solar is significantly lower at approximately 7.5p. However, this price can change depending on several different factors, some of those are listed below:

Size of solar panels
Efficiency of solar panels
Building roof-top features such as orientation, slope, shade etc
Location of solar panels that can impact the amount of solar irradiance it receives
The type of mounting and other hardware associated with those solar panels

Any government incentives available in the market

Is the cost of solar declining, and if so, why?

Solar costs have declined by 82% since 2010. One factor that has contributed to the decline in the cost of solar energy is the increased efficiency of solar panels. As solar panel technology has improved, the amount of electricity that can be generated by a given panel has increased, which has helped to lower the cost of solar energy. In addition, the increased use of solar energy has led to economies of scale, which has helped to lower the cost of solar panels and other solar equipment.

Another factor that has contributed to the decline in the cost of solar energy is the availability of incentives and subsidies. Many governments offer financial incentives to encourage the adoption of renewable energy, including solar energy. These incentives can take the form of tax credits, grants, or other forms of financial support, and they can help to offset the upfront cost of solar energy systems.

The decline in the cost of solar energy has made it an increasingly attractive option for businesses and households looking to reduce their energy costs and carbon footprint.

How does the public sector benefit from using solar energy and PowerMarket?

UK councils can benefit from rooftop solar energy in a number of ways. Some of the main benefits include:

Cost savings: One of the main benefits of rooftop solar energy for UK councils is the potential to save money on electricity costs. Solar energy systems can generate electricity at a fixed cost over their lifetime, which can help councils reduce their energy bills.
Tackle growing energy crisis: By installing roof-top solar on a selective set of buildings, councils can help its residents reduce their electricity expenses by up to 50%
Sustainability: 75% of local governments have declared carbon emergency. Solar energy is a clean, renewable energy source that does not produce greenhouse gas emissions. By using solar energy, councils can reduce their carbon footprint and improve their sustainability profile.
Improved reliability: Solar energy systems can provide a reliable source of electricity, as they are not subject to the same types of disruptions that can affect the grid (such as storms or other natural disasters).
Community engagement: Rooftop solar energy can also help councils engage with their communities and demonstrate a commitment to sustainability. For example, councils could install solar panels on municipal buildings and use the electricity generated to power public facilities, such as libraries or community centres.

Local governments use PowerMarket to analyse their complete portfolio of buildings to calculate feasibility and CO2 impact of solar on every single roof-top. The platform provides them all the required decision making insight.

What are the factors that affect the price of electricity generated from solar panels, and what is the price of electricity generated from solar?

There are several factors that can affect the price of electricity generated from rooftop solar panels. Some of the main factors include:

The size of the solar panel system: The size of the solar panel system is a major factor in determining the price of electricity generated from rooftop solar panels. Larger systems tend to be more expensive to install, but they also tend to generate more electricity, which can offset the higher upfront cost.
Building and roof-top features: The number of solar panels and how much electricity those generate can significantly vary depending on:
1. Roof area available
2. Roof orientation
3. Roof pitch / slope
4. Potential impact of shadows from nearby installations such as chimneys, trees, other buildings etc
The efficiency of the solar panels: The efficiency of the solar panels is another factor that can affect the price of electricity generated from rooftop solar panels. More efficient solar panels can generate more electricity per square foot, which can reduce the overall cost of the system.
The location of the solar panels: The location of the solar panels can also impact the price of electricity generated from rooftop solar panels. For example, solar panels located in sunny climates will generally generate more electricity than solar panels located in cloudy or shaded areas.
The type of mounting system: The type of mounting system used to install the solar panels can also affect the price of electricity generated from rooftop solar panels. Some mounting systems may be more expensive to install, but they may also be more durable or easier to maintain.
The availability of incentives and subsidies: Many governments offer financial incentives to encourage the adoption of renewable energy, including solar energy. These incentives can take the form of tax credits, grants, or other forms of financial support, and they can help offset the upfront cost of solar panel systems.

PowerMarket uses satellite imagery and computer vision AI to automate the analysis of building roof-tops at scale, and calculate the potential impact, i.e savings, return on investment, and CO2 offset, in a matter of seconds.

Are there financing options are available for solar energy systems?

One of the most common solar finance options available in the market is PPA (Power Purchase Agreement) finance. A power purchase agreement (PPA) is a financial arrangement in which a company agrees to purchase electricity from a solar energy system owner at a fixed rate over a period of time. This allows the company to benefit from solar energy without the upfront costs of purchasing and installing a system.

What is PPA finance, how does it work and how can PowerMarket help with it?

A solar power purchase agreement (PPA) is a financial arrangement in which a company agrees to purchase electricity from a solar energy system owner at a fixed rate over a period of time. This allows the company to benefit from solar energy without the upfront costs of purchasing and installing a solar energy system.

Under a solar PPA, the company agrees to purchase electricity from the solar energy system owner at a fixed price for a specific period of time. The company is typically not responsible for the maintenance or repair of the solar energy system, and it does not own the system. Instead, the company leases its roof-top to the solar energy system owner / the PPA finance provider, and pays for the electricity generated by the system.

Solar PPAs can be structured in a variety of ways, and the specific terms of the agreement will depend on the needs of the company and the capabilities of the solar energy system owner. For example, the term of the agreement could be as short as a few years or as long as 25 years. The price of the electricity under a solar PPA may be fixed or it may be adjusted over time based on inflation or other factors.

Commercial and public sector organisations in the UK can now access bespoke PPA finance options by subscribing to PowerMarket’s platform.

What are the pros and cons of solar PPA finance?

Solar power purchase agreements (PPAs) can be a useful financial tool for companies that want to benefit from solar energy without the upfront costs of purchasing and installing a solar energy system. However, there are both advantages and disadvantages to consider when deciding whether a solar PPA is the right option for your company.

Pros

Cons

No upfront costs: One of the main benefits of a solar PPA is that it allows a company to benefit from solar energy without the upfront costs of purchasing and installing a solar energy system. This can be particularly attractive for companies that do not have the capital or creditworthiness to finance a solar energy system on their own.
Fixed energy costs: Solar PPAs can also provide a company with a fixed price for the electricity generated by the solar energy system, which can help to stabilize energy costs over the term of the agreement. This can be particularly beneficial for companies that are concerned about rising electricity prices.
Simplicity: Solar PPAs can be relatively simple to set up and administer, as the company is typically not responsible for the maintenance or repair of the solar energy system.
Low risk: Since the ownership of the solar installation and its maintenance falls within the preview of the finance provider, there’s little responsibility or liability on the commercial organisation that’s purchasing the electricity.

Limited savings: Under a solar PPA, the company is typically not the owner of the solar energy system and therefore only benefits from the lower electricity tariff offered by the PPA finance provider.
Risk of underperformance: The company is typically not responsible for the maintenance or repair of the solar energy system under a solar PPA. However, if the system underperforms, the company may not receive the full benefit of the agreement.
Lack of ownership: A solar PPA does not give the company ownership of the solar energy system. This means that the company does not have the option to sell the system or to claim any incentives or tax credits that may be available to solar energy system owners.
Damages from poor quality installation: While the finance provider is responsible for the maintenance of solar site, any damage to the roof of the building due to poor quality installation is may not be the finance providers responsibility and can pose a risk

Commercial organisation use PowerMarket to find solar options best suited for the business, and highly rated PPA finance providers with a proven track record.

How to determine if a building, or a portfolio of buildings, is suitable for solar energy?

There are several factors to consider when determining if a property is suitable for solar energy. Some of the main factors to consider include:

Location and orientation: Solar panels need to be located in an area that receives plenty of sunlight. The location and orientation of the property will therefore be important factors to consider when determining if the property is suitable for solar energy. Solar panels generally perform best when they are oriented towards the south and when they are not shaded by trees or other objects.
Size and shape of the roof: The size and shape of the roof or ground area will also be important considerations when determining if a property is suitable for solar energy. Solar panels will need to be installed in an area that has enough space to accommodate the size of the system, and the shape of the area will need to be compatible with the type of mounting system that is used.
Local climate: The local climate can also impact the suitability of a property for solar energy. Solar panels generally perform better in sunny climates, although they can still be effective in cloudy or partially sunny areas.

To determine if a property is suitable for solar energy, it may be helpful to conduct a solar feasibility study.

How long does it take to conduct solar feasibility study of a building?

The length of time it takes to conduct a solar feasibility study of a building can vary depending on the size and complexity of the building, as well as the availability of data and resources. In general, a solar feasibility study will involve the following steps:

Data collection: The first step in a solar feasibility study is to gather data about the building and the surrounding area. This may include information about the size and shape of the roof or ground area, the orientation of the building, the local climate, and any shading issues.
Financial analysis: The next step in a solar feasibility study is to conduct a financial analysis to determine the potential costs and benefits of installing a solar energy system on the building. This may involve calculating the payback period, the internal rate of return, and the net present value of the solar energy system.
Energy assessment: The third step in a solar feasibility study is to conduct an energy assessment to determine how much electricity the building currently uses and how much solar energy could be generated on the site. This may involve analysing energy bills and other data to determine the building’s energy usage patterns.
Site assessment: The last step in a solar feasibility study is to conduct a site assessment to determine if the building is physically suitable for solar energy. This may involve an inspection of the roof or ground area to identify any potential issues that could impact the performance of a solar energy system.

The length of time it takes to complete each of these steps will depend on the specific circumstances of the building. Using conventional methods, such a study for an individual building can take anywhere between a few hours and a few days.

However, such a process becomes prohibitively time consuming and expensive when it has to be done across tens, hundreds or thousands of buildings, or telecom masts. As a result, many organisations / installers arbitrarily select buildings to install solar and don’t realise the savings and RoI opportunity from solar.

PowerMarket automates this process so they have data for every single building, providing them with actionable insight to maximise the impact from solar on their business.

What are the different phases involved in the installation of a roof-top solar site?

The installation of a rooftop solar energy system typically involves the following phases:

Site assessment and design: The first phase of the installation process is to conduct a site assessment and design the solar energy system. This may involve analysing data about the size and orientation of the roof, the local climate, and the building’s energy usage patterns. The design of the solar energy system will take these factors into account and will determine the number and type of solar panels that will be needed, as well as the size and type of inverter and other equipment.
Permitting and approvals: The next phase of the installation process is to obtain any necessary permits and approvals. This may involve obtaining permission from the local building department, the homeowner’s association, or other regulatory agencies.
Procurement: The third phase of the installation process is to purchase the necessary equipment and materials. This may include solar panels, an inverter, mounting hardware, and other equipment.
Installation: The fourth phase of the installation process is to install the solar energy system. This typically involves mounting the solar panels on the roof or ground, connecting the panels to the inverter, and installing any other necessary equipment.
Testing and commissioning: The final phase of the installation process is to test and commission the solar energy system. This typically involves conducting a series of tests to ensure that the system is operating correctly and is producing the expected amount of electricity.

What are the risks involved during solar roof-top installation process?

There are several risks that can be involved during the installation of a rooftop solar energy system. Some of the main risks to consider include:

Structural damage: Installing a solar energy system on a rooftop can put stress on the structure of the building. It is important to ensure that the building is strong enough to support the weight of the solar panels and other equipment.
Weather-related risks: The installation of a solar energy system can be affected by weather conditions, such as high winds, heavy rain, or extreme heat. These conditions can make it difficult or unsafe for workers to access the roof, and they can also impact the performance of the solar panels.
Equipment failure: The solar panels and other equipment used in a solar energy system are subject to wear and tear, and they can fail over time. It is important to ensure that the equipment used in the solar energy system is of high quality and is properly maintained to minimize the risk of equipment failure.
Safety risks: The installation of a solar energy system can involve working at heights and handling heavy equipment, which can present safety risks for workers. It is important to follow proper safety procedures and to use appropriate personal protective equipment to minimize these risks.
Regulatory risks: There are also regulatory risks to consider when installing a solar energy system. For example, there may be local building codes or zoning laws that need to be followed, and there may be penalties for noncompliance.

PowerMarket’s platform comes with a suite of tools for complete workflow and project management of solar sites.

How can poor installation of solar affect a business?

Poor installation of a solar energy system can have negative impacts on a business in a number of ways. Some of the main risks associated with poor installation of solar include:

Reduced performance: Poor installation of a solar energy system can result in reduced performance of the system. This can result in the system generating less electricity than expected, which can reduce the financial benefits of the system for the business.
Increased maintenance costs: Poor installation of a solar energy system can also lead to increased maintenance costs. For example, if the solar panels are not installed correctly, they may be more prone to failure or damage, which can increase the cost of repairs and maintenance.
Safety risks: Poor installation of a solar energy system can also present safety risks. For example, if the system is not installed correctly, it may be more prone to electrical fires, roof damage leading to water leakage, etc.
Reputation risk: Poor installation of a solar energy system can also impact the reputation of a business. If the system is not installed correctly, it may not meet the expectations of the business or its customers, which can damage the business’s reputation.

It is essential businesses conduct detailed background checks on their solar installers and not just work with the ones offering the lowest price as the above risks can result in significant financial loss.

Businesses use PowerMarket’s suite of workflow and project management tools to select the best installers that not only provide competitive prices but also have a track record of the highest quality installations.

What is solar monitoring and why is it important?

Solar monitoring is the process of tracking and measuring the performance of a solar energy system. Solar monitoring systems typically include sensors and other devices that are installed on or near the solar panels, as well as a monitoring system that collects and analyses the data from these sensors.

There are several reasons why solar monitoring is important:

Improved performance: Solar monitoring can help to improve the performance of a solar energy system by identifying and addressing any issues that may be impacting the system’s efficiency. For example, if the solar panels are not producing as much electricity as expected, solar monitoring can help to identify the cause of the problem and suggest solutions.
Increased transparency: Solar monitoring systems can provide detailed information about the performance of a solar energy system, which can help to increase transparency and accountability. This can be particularly useful for businesses or other organizations that are using solar energy to meet sustainability goals or reduce their carbon footprint.
Enhanced safety: Solar monitoring can also help to enhance the safety of a solar energy system. For example, solar monitoring systems can alert users to any potential safety hazards, such as electrical fires or malfunctioning equipment.
Increased value: Solar monitoring can also help to increase the value of a solar energy system. By providing detailed data about the performance of the system, solar monitoring can help to demonstrate the system’s reliability and effectiveness, which can increase its value to potential buyers or investors.

Organisations use PowerMarket to seamlessly connect their distributed solar sites with the platform, without requiring expensive third-party sensors. Its smart systems and AI auto-detect faults, under performances, and schedule maintenance to maximise the performance and savings from solar.

Which are some of the typical solar monitoring tools available in the market, what are their respective advantages and limitations?

Inverter Monitoring

Sensor Monitoring

· Several inverter manufacturers provide their own monitoring software that tracks the performance of their inverters and solar panels connected

· These software typically measure the amount of electricity being generated by the solar panels and the amount of electricity being used by the building or other load.

· These are external hardware-based data-loggers that are typically used by third-party monitoring systems

· These systems track the performance of solar panels, the amount of electricity generated, and the amount of generated electricity consumed by the building

· In some cases, these systems can also provide smart analytics and alarms

Advantages

· These are mostly free and are set up by the inverter provider, or the installer

· Often have separate dedicated dashboards for each solar site

· Although paid, these can centralise the entire solar portfolio, i.e, monitoring data from disparate sites, on one platform

· Can provide more detailed analytics compared with free monitoring systems provided by inverter manufacturers

Limitations

· Are restricted to the specific inverter manufacturer providing the free monitoring software, i.e, if there are sites with different inverters then you may need several different monitoring systems

· Monitoring software is often quite basic in functionality, i.e, only monitor generation and does not provide any smart analytics or alarm features

· Monitoring software is often not updated regularly and can be quite buggy

· Require installation of separate hardware on each solar site

· The hardware itself can be expensive

· The hardware itself may require maintenance and costs associated with that maintenance

· While solar has a life of 25 years, the hardware may have a much shorter life, therefore requiring recurring replacement cost

PowerMarket has been designed to address all these limitations:

Seamlessly connects with all inverters without requiring third-party hardware sensors or data loggers
Centralises the entire solar portfolio on one dashboard replacing multiple clunky dashboards for each solar site
AI driven smart analytics to detect faults, underperformances and alert features
Collaborative software for internal and external stakeholders involved in monitoring and maintenance of sites
Generation, savings and emissions reporting
Schedule maintenance
Securely saves and manage data and documents

What are some of common factors that can impact generation from solar panels?

There are several factors that can reduce the amount of electricity generated from solar panels, these factors can reduce generation from solar panels by up to 50%, directly impacting an organisations’ forecasted savings and revenue:

Shading: Shading from trees, buildings, or other objects can significantly reduce the amount of electricity generated from solar panels. Solar panels that are shaded for even a small portion of the day will generate less electricity than panels that are not shaded.
Dirt, dust, and other debris: Solar panels that are covered in dirt, dust, or other debris will generate less electricity than clean panels. Regular cleaning of the panels can help to maintain their performance.
Age of the solar panels: The age of the solar panels can also impact the generation of electricity. As solar panels age, their performance will generally degrade, which can result in a decrease in the amount of electricity that they generate.
Physical damage: Solar panels and inverters can be damaged by physical impacts, such as storms, hail, or falling debris. This can result in reduced performance or complete failure of the equipment.
Equipment failure: Solar panels and inverters are subject to wear and tear, and they can fail over time. This can result in reduced performance or complete failure of the equipment.
Electrical hazards: Solar panels and inverters are electrical devices, and they can present electrical hazards if they are not installed or maintained properly. For example, faulty wiring or equipment can lead to electrical fires or other hazards.
Delays in fault fix: Delays in identifying faults due to poor monitoring software systems can add on to the losses from failure in solar panels and connected hardware. Free and legacy monitoring tools lack smart fault detection and as a result, it can be months before any loss in generation is identified. Scheduling maintenance can then add to those losses.

PowerMarket’s AI-driven smart monitoring and maintenance scheduling software system minimises those losses. Its data and document management features ensure that there’s a clear and transparent log of faults, fixes, and diagnostics for all future warranty and insurance purposes.

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