As businesses across the UK strive to become more sustainable, renewable energy technologies are increasingly in demand. Among the most popular options are solar thermal panels and solar photovoltaic (PV) systems. But which technology is best suited for your business?
This guide provides a clear comparison to help you make an informed decision.
What Are Solar Thermal Panels?
Solar thermal panels are designed to capture sunlight’s heat and use it to produce hot water or air. They consist of collectors, typically mounted on rooftops, that absorb solar energy and transfer it to a fluid. This heated fluid meets heating needs, such as providing hot water for commercial kitchens or heating buildings in colder months.
These systems are particularly effective in sectors like hospitality, healthcare, and manufacturing, where hot water demand is significant. Solar thermal panels offer an efficient and cost-effective way to reduce reliance on traditional heating methods.
What Are Solar PV Panels?
Solar PV panels convert sunlight into electricity using photovoltaic cells. These panels generate direct current (DC) electricity, converted to alternating current (AC) through an inverter. Thus, solar PV is suitable for powering electrical devices and systems.
Solar PV systems can significantly benefit businesses with high electricity demands, such as offices, data centers, or retail facilities. They provide a versatile energy solution that reduces electricity bills while supporting sustainability goals.
Key Differences Between Solar Thermal Panels and Solar PV
Features | Solar Thermal Panels | Solar PV Panels |
Functionality | Designed to capture and use solar energy for heating purposes. They transfer this heat to a fluid, producing hot water or air for applications like heating systems, industrial processes, or hot water supply. | Convert sunlight into electricity. This electricity can power various devices, machinery, or entire facilities, making it a highly flexible option for businesses with diverse energy needs. |
Energy Output | Optimised for businesses that rely heavily on heating, such as hospitality or healthcare. They provide a consistent hot water or air source and are especially beneficial during colder months. | It is more versatile and capable of powering lighting, computers, and even heavy machinery. This makes them suitable for retail, technology, and manufacturing businesses, where electricity consumption is significant. |
Installation Requirements | They require fewer panels due to their focused purpose, but they need additional components like storage tanks for hot water. These systems are ideal for properties with smaller rooftops that might not support large installations. | A larger installation area is required to meet significant energy demands. Adequate rooftop space and structural integrity are crucial for mounting the multiple panels for effective electricity generation. |
Maintenance | Require periodic maintenance, such as checking fluid levels, inspecting pumps, and ensuring the system’s pressure remains balanced. These steps are essential to maintain efficiency and prevent breakdowns. | Require minimal maintenance. Regular cleaning of the panels to remove dirt and debris is often sufficient. Additionally, occasional inverter servicing may be necessary to ensure optimal energy conversion. |
Benefits of Solar Thermal Panels
- Efficiency: Solar thermal panels are highly efficient for heating purposes, particularly in the UK’s climate. These systems can convert up to 70% of the solar energy they collect into usable heat, making them one of the most effective solutions for meeting heating demands in regions with moderate sunlight.
- Lower Costs: They generally have lower upfront costs than solar PV systems. Additionally, simpler technology means fewer components, reducing installation and maintenance expenses.
- Specialised Applications: Solar thermal panels are particularly suited for industries with consistent hot water needs, such as hotels, hospitals, and commercial kitchens. Businesses can significantly reduce their reliance on traditional energy sources and achieve long-term cost savings by directly addressing these needs. Moreover, they are ideal for businesses looking to improve their energy efficiency ratings and reduce carbon emissions linked to heating systems.
Benefits of Solar PV Panels
- Electricity Generation: Solar PV panels generate electricity, reducing reliance on the grid and cutting energy bills. Businesses can generate electricity to protect themselves against rising energy costs and improve their energy independence. Additionally, solar PV systems allow companies to operate more sustainably by reducing their carbon footprint.
- Government Incentives: Businesses can benefit from schemes like the Smart Export Guarantee (SEG) by selling excess electricity back to the grid. This provides an additional revenue stream and enhances the financial viability of the investment in solar PV technology. Businesses in the UK can also explore tax benefits and grants supporting renewable energy adoption.
- Versatility: Solar PV systems meet various energy needs, from lighting to running heavy equipment. They are highly adaptable and can be integrated with battery storage systems to store surplus energy during peak hours or periods of low sunlight. This flexibility makes solar PV an attractive option for various industries, including retail, manufacturing, and technology-driven businesses.
Limitations of Solar Thermal Panels
- Limited Applications: They can only address heating needs, requiring supplementary systems for electricity. While highly effective for hot water and heating, solar thermal systems are not designed to meet broader energy demands such as powering electrical devices or equipment, which limits their utility in businesses with diverse energy needs.
- Seasonal Dependence: Efficiency can vary with seasonal sunlight availability in the UK. During the winter, when sunlight is limited, solar thermal panels’ performance may decrease, potentially requiring businesses to rely on auxiliary heating systems. This seasonal fluctuation can pose challenges for industries with consistent year-round heating requirements.
Limitations of Solar PV Panels
- Higher Initial Investment: Solar PV systems can be more expensive to install than solar thermal panels. This upfront cost includes the price of solar panels, inverters, and professional installation. However, these costs are often offset over time through reduced electricity bills and revenue from exporting excess energy.
- Space Requirements: Large-scale systems may require significant rooftop or ground space. Accommodating enough panels to meet energy demands can be challenging for businesses with limited rooftop capacity. Additionally, shading from nearby buildings or trees can impact system efficiency, making site evaluation an essential step before installation.
Factors to Consider When Choosing Solar Technology
- Energy Needs: Evaluate your business’s specific energy requirements. Determine whether your primary demand is for heating, such as hot water for hospitality or healthcare, or electricity for powering equipment, lighting, or data systems. Understanding these needs will guide you toward the most effective technology.
- Space Availability: Analyse the available rooftop or ground space for installation. Solar thermal systems generally require fewer panels but additional space for hot water storage tanks. Solar PV systems, however, may require larger installation areas to meet significant electricity demands, particularly for high-consumption businesses.
- Budget: Assess the initial installation costs in relation to the long-term savings each system offers. Solar thermal systems typically have a lower upfront cost. In contrast, solar PV systems may involve higher initial expenses but provide more significant savings through reduced electricity bills and potential income from exporting surplus energy.
- Sustainability Goals: Consider your company’s environmental objectives. Both technologies contribute to sustainability, but the choice may depend on whether your focus is reducing carbon emissions from heating or achieving broader energy independence through electricity generation.
- Government Incentives: Investigate available solar PV system schemes and incentives, such as the Smart Export Guarantee (SEG). These incentives can significantly offset the cost of installation and improve the return on investment, making renewable energy adoption more financially viable for your business.
Can You Combine Solar Thermal and Solar PV?
Yes, businesses can combine both technologies to meet diverse energy needs. For instance, a hotel can use solar thermal panels to efficiently provide hot water for guest rooms, kitchens, and spa facilities while relying on solar PV panels to generate electricity for lighting, air conditioning, and electronic devices. This approach ensures comprehensive energy coverage and allows businesses to optimise their energy usage and reduce dependency on non-renewable energy sources. Furthermore, combining these systems can enhance overall cost savings and sustainability by addressing heating and electricity requirements with renewable solutions tailored to specific operational demands.
Find Your Perfect Solar Solution
Both solar thermal panels and solar PV systems offer unique benefits for businesses, each serving different energy needs and operational goals. The right choice ultimately depends on your energy requirements, budget, and sustainability objectives. By understanding each technology’s key differences and advantages, you can make an informed decision supporting your business’s growth and sustainability efforts.
Ready to take the next step? Use EvoEnergy’s Solar Panel Calculator to discover how much you can save on energy costs and CO₂ emissions by installing solar panels on your property. It’s quick, easy, and gives valuable insights tailored to your business.
Want to learn more about how EvoEnergy can transform your energy strategy? Visit our Renewable Energy Services page to explore our full range of solutions, including solar PV systems. Let EvoEnergy help you unlock renewable energy’s full potential and achieve a greener future.