# Commercial solar for Manufacturing

For manufacturers, electricity is often one of the largest controllable overheads. On-site solar PV and battery storage cut that cost and hedge against volatile grid prices — with no capital outlay when funded through a Power Purchase Agreement.

Manufacturing runs on power. Motors, compressors, ovens, injection moulding and process cooling create a heavy, consistent daytime load that lines up neatly with solar generation, so a high share of the energy you produce is used on the line.

Because energy is such a big slice of unit cost, even a modest reduction in your pence-per-kWh rate flows straight to the bottom line — and a fixed PPA rate makes budgeting far more predictable.

## Why it fits Manufacturing

- **High, steady daytime load** — Continuous process demand means excellent solar self-consumption — you use what you generate rather than exporting it.
- **A hedge against price shocks** — A fixed PPA rate insulates a big part of your energy bill from wholesale market swings, protecting margins.
- **Own it and claim allowances** — If you would rather own the system, hire purchase or outright purchase can qualify for capital allowances — worth discussing with your accountant.
- **Cut Scope 2 emissions** — On-site renewable generation lowers reported emissions and supports tender requirements and customer sustainability audits.

## Frequently asked questions

**Our processes run three shifts — is solar still worth it?**

Yes. Daytime shifts capture solar directly, and battery storage plus a smart tariff can support night running by storing cheaper off-peak or self-generated energy for later use.

**Should we fund it as a PPA or buy it outright?**

Both work. A PPA means zero upfront cost and no maintenance; outright purchase or hire purchase means you own the asset and may claim capital allowances. We help you compare on our funding options page.

## 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 Manufacturing](https://ppafunding.com/commercial-solar-for/manufacturing) · 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.