Solar panels for business: ROI and what UK companies can really expect
- Gary Carter
- Aug 20
- 4 min read
Updated: 15 hours ago
Introduction: why ROI is the decider
When UK businesses explore solar panels, the conversation often begins with sustainability and carbon reduction. But in boardrooms and budget meetings, the real question is always the same: What’s the return on investment (ROI)?
Finance directors, operations leaders, and sustainability managers are aligned on the need for energy transformation but without a watertight financial case, projects stall. This blog breaks down what ROI you can realistically expect from solar panels in the UK, how it varies by industry, and why independent assessment is critical before you commit.
👉 For a tailored projection, you can skip ahead and use our Feasibility Kickstarter, the only independent ROI calculator designed specifically for UK businesses.
Why ROI matters more than ever
Energy costs remain volatile: electricity prices have doubled in the past five years, and while wholesale costs may dip, long-term volatility is the new normal.
Board-level approval: finance teams demand hard numbers, not vague promises. Solar needs to be benchmarked against other investments.
Funding model complexity: ROI looks very different under purchase, lease, or PPA structures. Many calculators don’t tell the full story.
What ROI looks like with solar panels for business
Typical payback periods
Capex purchase: 5–7 years, with 15–20 years of “free” energy after payback.
Lease: 6–8 years, depending on contract and escalators.
PPA: No payback period as there’s no upfront cost. Instead, savings are compared against grid prices (10–30% lower bills).
Average annual savings
SME offices: £10,000-£30,000 annually.
Medium manufacturing plant: £50,000-£150,000 annually.
Large industrial site: £200,000+ annually.
Sector-specific ROI insights
Manufacturing
Energy-intensive processes (furnaces, refrigeration, motors, CNC machines).
Strong daytime loads align with solar generation.
Payback: 4–6 years typical.
Hotels and leisure
Peak demand during daylight (kitchens, HVAC, pools).
Guests value sustainability, providing dual ROI (cost and marketing).
Payback: 5-7 years.
Care homes
Continuous 24/7 load ensures full solar utilisation, battery storage is usually a value-add here.
Reliability and predictable savings appeal to CFOs.
Payback: 6 years on average.
Beyond simple ROI: the hidden benefits
Hedging against energy inflation: solar shields businesses from grid volatility for 25+ years. With market uncertainty the new norm, solar is the strategic choice for organisations that want to get that certainty back. There is nothing else, fixing energy contracts included, that moves the needle more than installation of on-site generation of renewable energy when it comes to influencing energy costs.
ESG reporting: renewable energy initiatives meet investor, regulator, and customer expectations. Solar can be one of the best contributors towards ESG targets. When matched with the best-fit funding solution, the ESG benefit will be realised without your origanisation actually footing the bill, with solutions more than paying for themselves. Many ESG initiatives can be expensive to implement but with solar, it not only contributes beyond what other initiatives would, it funds itself and continues to deliver benefits for a generation to come.
Property asset uplift: solar-enabled buildings command higher valuations and rental premiums. We're working with property managers and agents to help their clients increase the yield they make from commercial lets with an innovative approach to being able to adopt solar without the capital outlay which is benefiting landlords and tenants alike.
Why most ROI calculators mislead businesses
Installer bias: figures often assume perfect conditions and ignore roof suitability, shading, or realistic maintenance costs.
Funding blind spots: many tools assume outright purchase and don’t model lease/ PPA impacts.
Overstated performance: unrealistic capacity factors or degradation rates inflate savings.
This is why independent, data-driven modelling matters.
Introducing the Feasibility Kickstarter
Unlike generic calculators, our Feasibility Kickstarter tool is:
Independent: we’re not trying to sell you as many solar panels as possible.
Comprehensive: models Capex, Lease, and PPA side by side.
Outcome-driven: shows how solar impacts your business case, not just your roof.
Case example: electronics manufacturer
Annual energy spend: £105,000
System size: 166kWp rooftop
Optimal funding: Asset finance, 7-year term
Savings: £22,000 in year one, £478,000 over 25 years
This project was designed to strictly meet the client’s requirements; by listening carefully and responding with a solution that addressed the client’s needs and concerns, we optimised the projects potential within their parameters to deliver the best ROI that was possible.
Common ROI pitfalls to avoid
Overestimating roof size availability.
Ignoring business growth (future energy demand).
Failing to factor in energy price scenarios.
Not aligning funding model with financial objectives.
Conclusion: the business case for commercial solar panels is there, but needs independent validation
Solar panels for UK businesses deliver strong ROI in most scenarios often faster than other sustainability investments. But the real numbers depend on your energy profile and funding choice.
Before committing to a contract, run an independent feasibility study. It could mean the difference between a marginal project and a transformational one.
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