Look, I’ve been fitting solar panels on commercial roofs for the past 12 years, and I can tell you straight – most UK businesses are mental not to have solar by now. Manufacturing firms I work with regularly save £15,000+ on their annual electricity bills, warehouses hit payback in 6 years, and even small retail shops knock thousands off their overheads. The maths is simple: you’re paying 30-40p per unit from the grid, solar generates at roughly 10p per unit.
What You’ll Actually Save (Real Numbers)
Right, what does this actually cost me?
A decent 50kW commercial system runs £35,000-£50,000 all in – panels, inverters, mounting, electrical work, scaffolding, paperwork. Sounds like a lot until you see the savings.
Had a bakery in Preston last month – 40kW system saving them £850 a month on electricity. That’s over £10,000 yearly. Their ovens, mixers, and lighting run all day, perfect for solar.
Food processing plant near Blackburn went bigger – 100kW installation. They’re laughing now, saving £18,000 annually. Takes 5.5 years to pay back, then it’s basically free electricity for another 20 years.
Warehouse lad in Chorley was skeptical as hell. “Solar doesn’t work up here,” he kept saying. 75kW system later, he’s saving £12,000 yearly and planning another installation. Funny how numbers change minds.
How quick do you get your money back?
Most jobs I do pay back between 6-8 years. Had a metal fabrication shop hit payback in 5 years flat because they hammer electricity during the day – welders, compressors, lighting all running when panels generate most.
Things that speed up payback:
- Using electricity when sun’s out (obvious but crucial)
- Higher current electricity rates
- Decent system size and quality kit
- Tax breaks if you’re corporation tax payer
After payback period, you’re quids in. Twenty years of cheap electricity while everyone else gets hammered by rising prices.
Tax breaks – the bit your accountant will love
Annual Investment Allowance lets you write off the whole lot against corporation tax in year one. That £50,000 system could knock £10,000+ off your tax bill immediately.
Plus VAT back if you’re VAT registered. Your accountant’s probably already thinking about this reading over your shoulder.
Client of mine delayed installation by three months to hit the next tax year – strategic timing saved him a packet on corporation tax.
Different Businesses, Different Stories
Manufacturers – the easy wins
Manufacturing’s where solar really shines. You’re using power when it’s being made, simple as that.
Injection molding firm I did last year runs three shifts but heaviest consumption’s day shift. 80kW system covers most of their daytime usage – presses, heating, compressed air, the lot. Owner reckons it’s the best business decision he’s made.
Had a joinery workshop, all their machinery runs 7am-5pm. Planers, saws, dust extraction – massive electricity draw. Solar system pays for their workshop power, leaves more profit for the business.
Food processors are gold – constant refrigeration, production lines, packaging equipment. Money in the bank for solar installers.
Retail and offices – steady earners
Retail’s different but still profitable. Lighting, tills, heating, fridges if you’re food retail. Consistent daytime loads match solar generation well.
Garden center near Ormskirk – 30kW system covers most of their electricity. Glasshouses, irrigation pumps, shop lighting. Manager says customers like seeing the environmental effort too.
Office block in Preston went for 40kW. Air conditioning’s the big draw, plus all the usual office kit. Saves them £7,000 annually, looks good on their green credentials for tenders.
Farms – hidden goldmine
Farmers are catching on fast. Dairy parlors, grain dryers, livestock cooling – all perfect for solar.
Dairy farm near Clitheroe, milking twice daily plus refrigeration running 24/7. 60kW system knocked £8,000 off yearly bills. Qualified for rural grants too, sweetened the deal.
Had a poultry farmer, ventilation fans running constantly. Solar covers most of the daytime ventilation costs. Happy chickens, happy farmer, happy electricity bills.
Money Side – How to Pay for It
Power Purchase Agreements – solar without the bill
PPAs are brilliant if you don’t want to fork out upfront. Solar company owns the panels, you buy the electricity at fixed rates below market price.
Logistics firm I know went this route. Needed capital for new trucks, couldn’t tie money up in solar. PPA gives them cheaper electricity immediately, no capital outlay.
15-25 year contracts typical. Rates locked in, usually 15-20% below grid prices. Perfect for cash-strapped businesses wanting solar benefits.
Finance options that actually work
Asset finance spreads the cost over 5-7 years. Monthly payments often less than current electricity bills. Had a fabrication shop where monthly finance payments were £200 less than they were spending on electricity.
Various lease options available. Hire purchase, operating lease, finance lease – depends on your tax position and cash flow needs.
Your accountant will know what works best for your situation. Don’t just pick the cheapest option, pick the smartest one.
Grants and extra support
Some sectors get additional help. Agricultural grants, rural development funding, local enterprise partnership schemes.
Manufacturing firm qualified for green technology grant through their local LEP. Knocked 15% off the total cost. Worth checking what’s available before you commit.
Technical Stuff (The Boring But Important Bit)
Roof space and structural realities
100kW system needs about 700 square meters of decent roof. That’s a good-sized warehouse or large industrial unit.
We check roof condition first – no point fitting £50,000 of panels on a roof that needs replacing. Weight calculations, structural assessments if needed.
Industrial buildings usually fine for solar loading. Agricultural buildings sometimes need strengthening, factor that into costs.
Planning and grid connections
Most commercial systems under 1MW don’t need planning permission. Permitted development covers most installations.
Grid connection paperwork goes through your DNO. Usually straightforward, occasionally need network upgrades in rural spots.
We handle all the paperwork. Getting it wrong means delays and extra costs nobody wants.
Monitoring and upkeep
Commercial systems need proper monitoring. Real-time generation data on your phone, alerts if anything stops working.
Annual checks keep everything running sweet. Panel cleaning, electrical testing, inverter checks. We offer service packages covering the lot.
Client discovered three panels had stopped working through monitoring app. Quick warranty replacement because we caught it early.
Long-term Benefits Nobody Talks About
Property values and business image
Solar adds real asset value to commercial property. Tenants prefer buildings with predictable energy costs.
ESG reporting’s becoming mandatory for bigger businesses. Solar ticks environmental boxes for compliance and tender applications.
Customers notice solar installations. Shows you’re serious about environment, not just paying lip service.
Future money-making opportunities
Some businesses already sell excess electricity to neighbors during peak times. Virtual power plants aggregate multiple solar installations for grid services.
Early days but additional revenue streams developing beyond simple electricity savings.
Mistakes I See Businesses Make
Trying to do it cheap
Cheap solar is expensive long-term. Poor panels degrade faster, dodgy inverters fail early, cowboy installation causes problems later.
Had to fix a botched job from a cut-price installer. Customer ended up paying twice – once for original poor installation, again for proper repair work.
Undersizing for tax reasons
Don’t size systems just for tax efficiency. Bigger systems often better value per kW and higher long-term returns.
Think about future expansion too. Easier to install bigger capacity now than add modules later.
Picking wrong installer
Commercial work needs different skills from domestic. Structural engineering, project management, minimal business disruption.
Check credentials properly – MCS certification, commercial experience, insurance coverage, references you can actually contact.
Thinking commercial solar might work for your business? Get someone out to assess your electricity usage and roof space properly before making any decisions.