# Commercial solar for Bakeries & food production

Bakeries and food producers run ovens, mixers, refrigeration and processing lines that draw heavy, often round-the-clock electrical power. Funded solar and battery storage cut a major production cost with no upfront investment.

Food production is energy-intensive: alongside any gas-fired ovens, there is substantial electrical demand from mixing, proving, chilling, freezing, packaging and increasingly electric baking. That heavy, sustained load makes on-site solar highly effective.

With retailers demanding both keen prices and carbon reporting, a PPA helps on both fronts — a lower fixed energy rate and genuine on-site renewables, with no capital outlay.

## Why it fits Bakeries & food production

- **Heavy processing load** — Refrigeration, mixing and packaging create high daytime demand, so solar self-consumption is strong.
- **Meet retailer carbon asks** — On-site renewables are a clear, auditable reduction for supermarket supply chains.
- **Protect margins** — A fixed rate below the grid steadies a big cost in a low-margin sector.
- **Own it if you prefer** — A PPA needs no capital, but hire purchase or outright purchase can suit firms wanting the asset and allowances.

## Frequently asked questions

**We run overnight production — does solar still help?**

Daytime shifts capture solar directly, and battery storage carries generation or cheaper off-peak energy into the night, so round-the-clock production still benefits.

**Can we tell retailers we use solar?**

Yes — on-site renewable generation is a genuine, verifiable claim for your carbon reporting and supplier audits.

## Funding routes

| Route | Upfront | Payment | Ownership | Maintenance | Accounting | Best for |
| --- | --- | --- | --- | --- | --- | --- |
| Power Purchase Agreement (PPA) | £0 | Fixed rate per kWh | Yours for £1 at end of term | Fully included | Off-balance-sheet (operating cost) | Businesses that want no capital outlay, no risk and no maintenance — just lower bills from day one. |
| Outright Purchase (CapEx) | Full system cost | One-off capital cost | Yours from day one | Optional O&M package | Capital asset | Businesses with capital available that want the strongest long-term return and full ownership. |
| Hire Purchase (HP) | Deposit | Fixed monthly instalments | Yours at end of agreement | Optional O&M package | Asset on balance sheet | Businesses that want to own the system but spread the cost and protect their cash flow. |
| Leasing (Operating / Finance Lease) | Low / none | Fixed rentals (opex) | Return, extend or buy at end | Optional O&M package | Rentals as operating expense | Businesses that want minimal upfront cost and predictable, tax-efficient operating payments. |

**Power Purchase Agreement (PPA)** — Zero upfront. Pay only for the clean power you use.

Pros: No upfront cost or capital outlay; Rate guaranteed at least 30% below the grid; Fully funded, installed and maintained for you; System becomes yours for a nominal £1 at the end.

Consider: A long-term agreement (typically 15–25 years); You don't own the system during the term.

**Outright Purchase (CapEx)** — Own it from day one and keep 100% of the savings.

Pros: Best long-term return on investment; Own the asset and keep every kWh of savings; May qualify for capital allowances / full expensing; No financing or interest cost.

Consider: Ties up capital that could be used elsewhere; You're responsible for maintenance (we can provide it).

**Hire Purchase (HP)** — Spread the cost, own the system at the end.

Pros: Preserve working capital — pay over an agreed term; Own the system outright at the end; Tax-efficient: claim capital allowances and offset interest; Fixed, predictable monthly payments.

Consider: Interest applies over the term; Subject to finance approval.

**Leasing (Operating / Finance Lease)** — Low upfront, predictable rentals as an operating cost.

Pros: Little or no upfront cost; Rentals are typically 100% tax-deductible; Predictable, fixed payments; Flexible end-of-term options.

Consider: You may not own the system at the end (depends on lease type); Subject to finance approval.

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Source: [Commercial solar for Bakeries & food production](https://ppafunding.com/commercial-solar-for/bakeries-and-food-production) · Contact: 01743 649 888 · info@ppafunding.com · https://ppafunding.com

PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the installer or the funder. The service is free to use; a commission may be earned from partner funders at no extra cost. Content is educational and is not financial or tax advice.