How much will my business save with solar panels? UK

For businesses hoping to lower their energy expenses and cut down on emissions, solar panels are an ideal option.

With the power of the sun at your business’s fingertips, you can unlock significant solar savings when it comes to electricity costs—the extent of which vary depending on a variety of factors like system size, location, and current use.

Moreover, by investing in solar panels for your enterprise you’ll benefit from reduced bills over time as well as stable pricing and enhanced sustainability efforts.

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By utilizing solar panels, businesses can expect to see a drastic reduction in energy costs of 20-80%, with potential savings even higher when taking advantage of government incentives and tax credits.


Investing in solar power is not only an ecologically wise choice but also financially sound, offering considerable cost reductions for companies that are looking to improve their sustainability efforts.


In this blog, we will go over 3 different scenarios and examples of how much a business can save with solar panels when buying a solar power system outright.


We will use small, medium and large-sized businesses for these examples as many business owner up and down the UK look to know how much they will save with solar panels and how much commercial solar panels reduce electricity bills.

business solar panel savings

Business solar Savings (bought out-right)

Here will give 3 scenarios of a small, medium and large company that purchases a solar power system for their business.

We will go over how much they paid for the solar panel system,  how much money they saved off their energy bills and how long it took to recoup the initial investment.

Please keep note that business savings with solar panels can also depend on location, shading areas and climate.

Small Company Example:

small company solar savings

For instance, contemplate the prospects for a small-sized business located in the UK that installs state-of-the-art solar power equipment.


  • Solar Panel System: £15,000
  • Installation Costs: £5,000
  • Total Cost: £20,000


  • Average Monthly Electricity Bill (before solar panels): £500
  • Estimated Solar Energy Generation: 10,000 kWh per year
  • Estimated Average Electricity Cost per kWh: £0.15
  • Estimated Annual Electricity Bill Savings: £1,500 (10,000 kWh x £0.15)
  • Estimated Monthly Electricity Bill Savings: £125 (£1,500 / 12)
  • Average Monthly Electricity Bill (after solar panels): £500 – £125 = £375

Return on Investment (ROI):

  • Estimated Annual Savings: £1,500
  • Total Cost: £20,000
  • Estimated Years to ROI: £20,000 / £1,500 = 13.3 years

By taking advantage of this opportunity, this small business has already managed to save a total of £375 each month on their electricity bills – that’s equivalent to an incredible saving of £1,500 every year!

The cost of the solar power system and installation amounted to a hefty £20,000. However, with the anticipated savings that come along with it, this investment will soon pay for itself in just 13.3 years – allowing your company to begin benefiting from its solar panel system financially!

It is essential to remember that the costs, savings, and ROI depicted in this example are only indicative.

The exact figures will be contingent on a variety of elements including but not limited to location, climate conditions and the company’s energy consumption information.

Small company Before and After savings


  • Average Monthly Electricity Bill: £500


  • Average Monthly Electricity Bill: £375

Installing a solar power system is estimated to reduce the company’s monthly electricity bill by 25%, amounting to savings of £125 each month – that’s an impressive annual saving of £1,500!

Medium-sized Company Example:

medium company solar savings

Let’s observe how much a company can save by purchasing solar panels upfront.

As an example, let’s assume that the size of their system is 10 kilowatts (kW).

Cost: The price tag for a solar panel system and its installation is contingent upon the size, type, and geographical region.

For our example, we can hypothetically assume the childcare company invests in a 10 kW solar panel system, which amounts to an investment of approximately £25,000.

The total cost of the system will be £30,000 after factoring in installation costs approximating £5,000.

Savings: Annually, the childcare company consumes an estimated 15,000 kWh of electricity at a rate of £0.15 per kWh, resulting in an annual expenditure of £2,250 for their energy needs.

The installation of a 10 kW solar panel system is estimated to produce an annual 12,500 kWh of energy, which will provide roughly 83% coverage for the company’s total power requirements.

According to our calculations, this company should see an annual savings of £1,875 on their electricity bills.

Return on Investment (ROI): For the childcare company, it would take 16.3 years for them to recover their initial investment of £30,000 (including both the solar panel system and installation costs) through annual savings of a massive £1,875!

This is a relatively long ROI period, but it is important to consider that solar panels have a lifespan of 25-30 years, which means that the childcare company would continue to enjoy reduced energy costs for several years after they have recouped their initial investment.

Medium-sized Before and after savings

Before Solar Panels: Annually, the childcare company’s electricity usage amounts to 15,000 kWh at a rate of £0.15 per kWh; this computes to an average monthly electricity bill of £187.50.

After Solar Panels: By installing a 10 kW solar panel system, the company will generate an estimated 12,500 kWh of solar energy per year which should fulfill roughly 83% of their yearly energy needs.

Installing a solar panel system would result in the company saving approximately £1,875 a year on electricity bills. This equates to an average of £156.25 per month. Therefore, their monthly savings from installing this system amount to an impressive sum of £31.25!

Medium-sized company – Cost, savings and ROI broken-down


  • Solar Panel System: £25,000
  • Installation Costs: £5,000
  • Total Cost: £30,000


  • Monthly Electricity Bill before Solar Panels: £187.50
  • Monthly Solar Energy Generation: 1,042.5 kWh
  • Monthly Electricity Bill Savings: £156.25
  • Annual Electricity Bill Savings: £1,875

Return on Investment (ROI):

  • ROI Period: 16.3 Years
  • Total Savings over 25 Years: £46,875

Large-sized company example:

Large company solar savings

For example, imagine a UK-based meat manufacturing firm that is of an expansive size and installs a modern solar power system.

Cost: The cost of a modern 100kW solar panel system for a sizable company, not including installation fees, is estimated to be around £250,000. This price will fluctuate depending on the size and type of panels used as well as where they are located.

The cost of installing this system totals around £50,000, bringing the grand total to an estimated £300,000.

Savings: The manufacturing warehouse consumes an average of 150,000 kWh of electricity annually.

A staggering annual energy bill of £22,500 is what it would amount to for the typical cost per kWh of just £0.15! With a 100 kW solar panel system in place, however, this company could look forward to generating an estimated 125,000 kWh of renewable energy yearly – that’s enough to cover roughly 83% of their total electricity consumption needs!

Based on this, the company would expect to save approximately £18,750 per year on their electricity bills.

Return on Investment (ROI): By realizing a yearly savings of £18,750, it will take the large-sized company only 16.1 years to recoup their initial investment of £300,000 (including solar panel system and installation expenses).

With the expected 25-30 year lifespan of solar panels, it is clear that a larger company would enjoy reduced energy costs well beyond their initial investment payback period. Thus, although this ROI period appears to be long-term based on first glance, its overall benefit will be enjoyed for many years after.


Large-sized company Before and after savings

Before Solar Panels: With an average electrical consumption of 150,000 kWh annually and a cost per kilowatt-hour equivalent to £0.15, this sizable company racks up a large monthly electricity bill that amounts to £1,875.

After Solar Panels: Through the 100 kW solar panel system, our company anticipates producing approximately 125,000 kWh of clean energy annually – a figure estimated to cover an impressive 83% of their energy consumption.

By following this plan, the business can anticipate annual savings of £18,750 in terms of their electricity costs – translating to a monthly discount worth about £1,562.50!


LARGE company Cost, Savings and ROI broken-down


  • Solar Panel System: £250,000
  • Installation Costs: £50,000
  • Total Cost: £300,000


  • Average Monthly Electricity Bill (before solar panels): £1,875
  • Estimated Solar Energy Generation: 125,000 kWh per year
  • Estimated Annual Electricity Bill Savings: £18,750
  • Estimated Monthly Electricity Bill Savings: £1,562.50
  • Average Monthly Electricity Bill (after solar panels): £1,875 – £1,562.50 = £312.50

Return on Investment (ROI):

  • Estimated Annual Savings: £18,750
  • Total Cost: £300,000
  • Estimated Years to ROI: £300,000 / £18,750 = 16.1 years