Commercial solar installation for manufacturing: a complete guide to costs, ROI and benefits
- Gary Carter
- Aug 22
- 4 min read
Introduction: why manufacturing leads the solar transition
UK manufacturers are among the hardest hit by energy price volatility. From foundries and food processing plants to plastics and precision engineering, electricity bills are now one of the biggest threats to competitiveness.
While government policy plays a part, and the hope that the new industrial strategy will help, the reality is that many manufacturers are taking control themselves. Solar power has emerged as one of the most effective strategies to cut costs, stabilise operations, and boost sustainability credentials.
But the big questions remain: Is commercial solar installation right for your site? How much can you actually save? And how fast is the payback?
This guide walks through the business case for solar in UK manufacturing, the unique challenges of industrial projects, and how to model ROI the right way.
👉 For a personalised projection, try our Feasibility Kickstarter, the UK’s only independent ROI calculator for business solar.
Why manufacturers are the prime candidates for commercial solar installation
High daytime loads: machinery, motors, refrigeration, and compressed air systems run during daylight, perfectly matching solar generation.
Large roof space or adjacent land: commercial solar installation is well suited to warehouses, factories, and industrial estates as they often have vast unused surfaces for PV arrays. It’s important to size projects properly and not fill the roof with solar for the sake of it which can kill the business case.
Rising demand for sustainable supply chains: OEM’s, retailers, and customers increasingly demand Scope 3 carbon reductions from their suppliers. Sustainability in the supply chain has become a condition of doing business. Solar is the perfect way to progress this agenda; not only does it make a strong contribution towards ESG targets, renewable energy funds itself, delivering the true definition of a win-win.
Energy as a cost driver: for many manufacturers, electricity is now a top-three operating cost. Our whole approach to renewable energy is that done right, it can be an enabler of energy cost transformation, not just shaving a few pounds off monthly outgoings but a strong contributor to a high performing P&L that helps businesses achieve their financial objectives.
The economics: what solar panels deliver for UK manufacturers
Typical ROI:
Capex purchase: 4–6 years payback, 15–20 years of net savings.
Lease finance: 6–8 years payback, preserving working capital.
PPA: Zero upfront, 10–25% lower bills compared to grid.
Example annual savings:
Small factory: £25k–£50k/year
Medium plant: £100k–£200k/year
Large industrial site: £250k+/year
Case study: commercial solar installation for UK electronics manufacturer
Annual spend: £105,000
System size: 166 kWp installed on a small proportion of available roof space with plenty of expansion room left for future use
Funding: Asset lease, 7-year repayment
Results: £22,000 savings year one, £478,000 lifetime savings over the warranty period of the equipment
CO₂ reduction: 79.2 tonnes per year
Funding models compared for manufacturers
1. Purchase (Capex)
Pros: maximum ROI, asset ownership, best long-term value.
Cons: high upfront cost, may not align with business capex priorities.
2. Lease
Pros: no upfront cost, predictable repayment, off-balance-sheet in some cases.
Cons: slightly longer payback vs. outright purchase.
3. Power Purchase Agreement (PPA)
Pros: no upfront cost, savings from day one, maintenance included.
Cons: lower long-term ROI as most value captured by funder.
Barriers manufacturers need to solve
Roof suitability: weight loading, asbestos roofs, shading.
Grid connection constraints: some sites need reinforcement.
Operational disruption: installations must be planned to minimise downtime.
Strategic fit: solar needs to align with broader net zero and financial plans.
Beyond ROI: strategic benefits for manufacturers
Carbon reduction: demonstrates Scope 2 emissions progress for ESG and supply chain reporting.
Energy resilience: solar paired with storage reduces exposure to blackouts.
Customer advantage: sustainability increasingly a factor in tenders and contracts.
Employer brand: green investments improve employee engagement and retention.
Why generic solar calculators fail manufacturers
Many installers offer online calculators, but most:
Assume “perfect roof” scenarios.
Ignore industrial load profiles.
Fail to model PPA vs. Lease vs. Capex.
Don’t benchmark savings against volatile UK energy price forecasts.
This is why an independent feasibility tool is crucial.
Introducing the Feasibility Kickstarter
Our Feasibility Kickstarter is the UK’s only calculator designed for commercial and industrial solar.
It factors in:
Roof size and site constraints.
Industry-specific load profiles.
All three funding models side by side.
Sensitivity analysis on future energy price scenarios.
Conclusion: solar is a strategic advantage for manufacturers
Solar panels are no longer a “nice-to-have” for UK manufacturers. They’re a strategic lever to reduce costs, strengthen competitiveness, and hit sustainability targets.
But ROI is not one-size-fits-all. The only way to make the right decision is to model the project independently, across multiple funding options, against your actual load profile.
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