How to make solar panels work for your showroom

By Tracy Ellam, operations director of LSH Auto UK

As well as enabling better control over energy consumption and costs, the introduction of solar panels into your business will also align with sustainability goals and support the growth of the electric vehicle market.

LSH Auto UK successfully installed solar panels across our Stockport and Birmingham sites and the business has benefited from going down this route. We found there were four big advantages to going solar, which all retailers could also benefit from.

1) Energy savings through decreased consumption

Solar panels greatly reduce reliance on grid electricity, which translates into immediate and long-term cost savings. By generating your own electricity, you cut down on the amount you need to purchase from energy providers.

LSH Auto installed 1,296 solar panels across its Stockport and Birmingham sites and is now benefitting from substantial energy savings.

So far, the installation has been a great success for the business. Since October 2023, our solar panels have already generated 177,335kWh and we’re about to go live with solar power at our Minworth Trade Parts Centre too. 

We monitor our energy consumption through reports that are generated on a daily and weekly basis to ensure that demand remains as efficient as possible, preventing any complacency that could occur when a PV system has been installed. Not only have we seen a reduction in our demand on the grid but we’re also now exporting to the grid due to the lighter and longer days.

2) Carbon reduction in line with ESG initiatives

Sustainability is becoming a core component of business strategies across all sectors. Solar panels contribute to carbon reduction, aligning with Environmental, Social, and Governance (ESG) initiatives. LSH Auto’s solar panel installation is a key part of its broader ESG strategy, saving 113 tonnes of CO2 annually.

Our investment in solar panels is one strand of our wider ESG strategy and it reflects our core values of relevance and social responsibility.

We have conducted energy audits at all our sites and are working on plans to reduce energy consumption. We recently upgraded the lighting at our Whitefield site from fluorescent lighting to LED, which will provide a 53% annual reduction on the site’s energy consumption from lighting. Of course, we have recycling bins in every dealership and we’re planning to extend our recycling schemes to include colleague uniforms to aid waste management and support our environmental sustainability commitments.

We’re continuously looking for ways to improve our environmental impact. Green technology is important to our industry and our customers, and we’re already seeing the positive impact our solar panels have made on our energy consumption. This investment demonstrates our ongoing commitment to sustainable energy and maintaining our state-of-the-art facilities to the highest standards.”

3) Energy security and less vulnerability to price increases

Energy prices are volatile and can have a big impact on operational costs. Generating your own energy makes your business less susceptible to these fluctuations.

Generating our own energy, through solar, allows us to be less vulnerable to energy price changes, which in turn allows us to gain more control over our costs, without compromising our services. This stability is crucial for long-term financial planning and operational efficiency.

“Over its lifetime, the average system for a car retailer will secure electricity at a rate of 4p per kWh,” says James Cunningham, MD of Geo Green Power, which carried out the installation for LSH Auto. “To put that into context, most retailers are probably currently paying around 30p or even 40p per kWh for their electricity from the grid.”

4) Increased energy provision on site ahead of increased EV volumes

The shift towards electric vehicles, while beneficial for the environment, raises a retailer’s electricity consumption. Solar panels provide a reliable and sustainable source of energy to meet this increased demand.

More and more of our customers are adopting EV technology, from our Mercedes-EQ range to our all-electric smart and BYD models. From a practical point of view, the solar panel system that we’ve installed will generate enough electricity to provide for the increase in energy requirements. We also believe it’s important to continue to invest in industry-leading environmental technology and to implement best practice in our businesses.

LSH Auto’s solar panel installation

When approaching a project of this scale, finding and forming the right strategic partnerships is essential. LSH Auto collaborated with Purchase Direct, a procurement partner, which identified the opportunity and provides monthly reports on consumption and savings. Geo Green Power handled the installation.

Installation and scale

At Mercedes-Benz of Stockport, 488 panels have been installed, generating over 226,000kWh of electricity annually and saving 68 tonnes of CO2 each year.

At Mercedes-Benz of Birmingham, 808 panels (700 on the main roof and 108 on the valet bay) now produce more than 148,000kWh of electricity annually, reducing CO2 emissions by 45 tonnes each year.

Financial impact

Over 30 years, the project is predicted to save more than £7.7 million. The installation is expected to pay for itself in just three years.

Operational benefits

Since October 2023, LSH Auto’s solar panels have generated 177,335kWh.

The retailer has reduced its demand on the grid and is even exporting surplus energy due to longer daylight hours.

Implementing solar panels in your automotive retail business is not just a step towards sustainability, but also a strategic move to enhance energy security, reduce costs and prepare for an electric future. Not only does the LSH Auto example demonstrate the benefits that can be reaped when we harness the full potential of solar energy, it also highlights how investing in solar technology demonstrates a commitment to environmental stewardship and positions your business as a forward-thinking leader in the automotive industry.