Can Solar Save My Business Money?

Thinking about solar power for your business? Good idea. Solar panels can help lower energy bills, enhance sustainability, and reduce your reliance on the grid.

But what about costs and savings? Can solar panels genuinely benefit your bottom line?

In this blog, we’ll break down exactly how much you could save, debunk common ROI myths, and show you easy ways to calculate your potential return on investment.

Want to know more about the benefits of solar panels? Check out our complete solar guide.

What Affects the Cost of Solar Panels?

Solar panel installation costs can vary depending on a few key factors:

• Energy usage – Businesses with higher energy consumption typically need larger, more powerful systems.
• Sunlight exposure – Shaded sites might require higher efficiency panels or additional equipment.
• Type of panels and inverter – Premium equipment is more expensive upfront but can provide better long-term efficiency.
• Battery storage – Battery storage can be optional, but ideal if you want to store surplus energy for later use.
• Roof type and condition – Flat or older roofs may need extra prep work before installation.
• Extra features – Such as anti-bird mesh or energy diverters for water heating.

Typically, small to medium businesses see installation costs between £16,000 and £70,000, depending on their specific needs.

How can I Lower the Upfront Cost?

If the initial investment feels steep, don’t worry, many installers offer alternative ways to finance your solar panels.

These include:

• Leasing, where you pay a fixed monthly fee to use the solar panels
• Power purchase agreements (PPA), where you purchase the electricity that the solar panels generate

These methods reduce initial costs and provide instant savings, though total long-term savings can vary. We’re here to help you weigh the options and choose the best solution for your business.

Additionally, government grants or enhanced capital allowances may be available. For example, you might be able to write off the cost of your solar panels in the first year with enhanced capital allowances (ECA). You can also claim solar panels as a business expense.

How Much Money Can You Save With Solar Power?

Many businesses mistakenly assume solar isn’t worth the investment. But the reality is they can significantly cut your energy bills, often by as much as 65% annually.

Solar panels are a long-term investment, but savings can quickly accumulate, turning energy costs into predictable, manageable expenses.

Can You Sell the Solar Power You Don’t Use Back to the Grid?

Yes.

The Smart Export Guarantee (SEG) is a UK government initiative that allows businesses and homeowners to receive money for any excess renewable energy they export back to the grid.

This means you get paid for any solar energy you don’t use.

To qualify you need to have a smart meter or half-hourly meter. You can work with any licensed SEG supplier, which doesn’t have to be your current energy supplier. This means you can shop around to find the best rate, although bear in mind that some suppliers offer preferential rates to their current customers.

How to Calculate Your Potential Savings

There are two metrics you can use to work out how much money you can save through solar panels.

The first is your payback period. This is the time it takes for your cumulative savings to equal your initial investment cost in years (i.e. when you will ‘break even’).

Example:

• System cost: £15,000
• Annual savings: £1,889
• Payback period: approximately 8 years

In reality, most businesses see payback periods of around 4–5 years, however this can vary.

The second is the return on investment, or ROI. This helps you understand how much you’re saving against how much money you’re putting in. Your total investment cost includes the cost of your solar panels, installation, and maintenance costs, anything that ensures your solar panels stay up and running. Your total lifetime savings are how much money you save by using solar panels over the expected lifespan of your solar panel system. When well-maintained, a solar panel system can last between 25 to 40 years.

Example:

• Lifetime savings (25 years) = £47,225 (after deducting £2,500 maintenance)
• Initial investment = £15,000
• ROI = 214.83%

The benefit of ROI is that you can compare it to other business investments you make to see which will bring you the most savings.

Not Sure if Solar is Right For You?

Solar panels offer more than just financial savings. You’re helping the world become a cleaner and greener place, and you’re showing stakeholders that you’re committed to sustainable ideals.

If you’re considering solar panels but aren’t sure where to begin, we’re here to help.

Our team of energy experts will research which solar panels are right for your needs, see if there are any grants available you can apply for, and calculate your ROI to see how solar panels can benefit your business.