# Commercial solar for Cold storage & food processing

Cold storage and food processing sites carry some of the heaviest, most constant electricity loads in UK industry — chiefly refrigeration. That makes them outstanding candidates for on-site solar PV and battery storage, cutting a major cost with no upfront investment.

Refrigeration never stops, and it dominates the energy bill at cold stores, chilled warehouses and food factories. A large, near-constant load means almost all the solar you generate is consumed on site — the ideal conditions for strong savings.

Battery storage adds resilience for temperature-critical operations and helps manage expensive peak-time demand, while on-site generation reduces exposure to grid price rises that hit refrigeration-heavy businesses hardest.

## Why it fits Cold storage & food processing

- **Refrigeration = huge self-use** — Round-the-clock cooling load means you use the solar you generate, giving excellent returns on a large array.
- **Manage peak demand** — Battery storage helps shave costly peak-rate periods and supports capacity charges on refrigeration-heavy sites.
- **Resilience for critical stock** — On-site power and storage add a layer of protection for temperature-sensitive product during grid instability.
- **Meet retailer carbon asks** — Supplying supermarkets often means carbon reporting; on-site renewables are a clear, auditable reduction.

## Frequently asked questions

**Refrigeration runs 24/7 — how does solar help at night?**

Daytime cooling is covered directly by solar; battery storage lets you carry self-generated or cheaper off-peak energy into the night to keep offsetting refrigeration cost around the clock.

**Can we add storage without solar?**

Yes. A standalone battery PPA can still cut costs by storing cheaper off-peak energy and discharging during expensive peak periods — useful for high-usage cold stores in low-sunlight areas.

## 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 arrange 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 Cold storage & food processing](https://ppafunding.com/commercial-solar-for/cold-storage-and-food-processing) · 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 funder, the installer or the maintenance provider. The service is free to use; a commission may be earned from a partner at no extra cost. Content is educational and is not financial or tax advice.