# Commercial solar for Plastics & injection moulding

Injection moulding and plastics processing draw heavy, continuous electrical power — machines, heaters, chillers and compressors run around the clock. Funded solar and battery storage cut a major production cost, with no upfront investment.

Moulding machines, granulators, dryers and chilled-water systems make plastics processing one of the more electricity-intensive forms of manufacturing. The load is large and steady, so solar generated on site is used immediately.

Because energy is such a significant part of unit cost, a lower, fixed rate directly improves competitiveness. A PPA delivers that with no capital outlay, keeping cash free for tooling and materials.

## Why it fits Plastics & injection moulding

- **Heavy continuous load** — Machines and chillers run through the day, so solar self-consumption is very high.
- **Improve competitiveness** — A lower energy rate cuts unit cost in an energy-intensive process.
- **Hedge price volatility** — A fixed PPA rate protects margins from wholesale market swings.
- **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

**Our plant runs 24/7 — how much can solar cover?**

Solar covers daytime demand directly and battery storage extends it, but for continuous processing it reduces rather than removes grid draw. Even so, the savings on such a large load are significant.

**Should we buy the system to claim allowances?**

If owning the asset and claiming capital allowances matters to you, hire purchase or outright purchase may suit better than a PPA. We compare the options with you.

## 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 Plastics & injection moulding](https://ppafunding.com/commercial-solar-for/plastics-and-injection-moulding) · 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.