Solar Panels For Restaurants

 

If you are a restaurant owner within the UK or own a food-type business like a cafe or fast food takeaway service then you have probably noticed your energy bills have gone up sharply within the last couple of years.

With the rise in energy costs in the UK solar panels for restaurants are starting to become a more valuable option to save money but also help out the environment.

On this page, we will go over why solar panels for restaurants are a brilliant idea this year to cut costs but also we will look through solar panel funding methods like gov grants and solar fiancing models like PPA funding.

Solar funding for commercial companies man
Solar panel funding installer holding solar panels

Apply Solar Funding

Apply today to see if your Restuarant qualifies for free solar panel funding or elidable for solar incentives via government schemes or solar funding companies

Find solar funding options today and reduce your energy costs with our comprehensive solar solutions. Explore flexible solar finance options, including grants, loans, and PPAs, and discover the path to sustainable savings. Contact us today to explore your solar eligibility and start saving.

Receive a solar quote for your Restaurant

1

Submit Details & Energy Bill

Submit your restaurant's contact details and a recent copy of your energy bill so that the solar provider can have a firm understanding of your solar power requirements.

2

Receive Full Solar Quote

Once you have submitted your details, one of the solar advisors will contact you to go through all the solar funding options, such as solar Power Purchase Agreement (PPA) and a capital expenditure (capex) solar quote.

3

switch to Solar

After you have received your solar quotes and explored the funding methods, it's time to make a decision on moving forward and saving with solar.

Solar panel funding options for Restaurant businesses

If your a restaurant owner look to buy solar panels or interested in 

 

Solar funding options for restaurants encompass various financial mechanisms to facilitate the installation of solar panels and renewable energy systems. These options play a crucial role in helping restaurants surmount the upfront costs associated with solar power, thereby making the transition to sustainable energy more affordable. Some of the key solar funding options for restaurants are:

  1. Solar Power Purchase Agreements (PPAs) and Leasing: Solar PPAs and leasing arrangements enable restaurants to host solar panels on their property without having to bear the initial equipment purchase costs. Instead, they enter into an agreement to procure the power generated by the solar panels at a predetermined rate. This proves to be a cost-effective option for restaurants with limited upfront capital.
  2. Government Grants and Incentives: Various government programs extend grants and incentives to support the adoption of solar power in restaurants. These initiatives provide financial assistance, tax credits, and other incentives to help offset the cost of solar panel installation, thereby encouraging investment in renewable energy.
  3. Solar Loans and Financing: Restaurants can explore solar loans and financing options to fund their solar projects. These may include personal loans, home equity loans, contractor financing, and loans specifically tailored for solar projects. Solar loans often feature favorable terms and fixed interest rates, rendering them a viable option for restaurants seeking to invest in solar power.
 

By exploring these solar funding options, restaurants can access the necessary financial support to implement solar power, thereby reaping the benefits of sustainable energy while concurrently reducing their environmental impact.

solar panels for restaurants

Why Restaurants should utilize Solar Panels

Solar panels are a perfect fit for restaurants and food outlets due to their energy-intensive operations.

These businesses can substantially cut electricity costs by harnessing solar energy, freeing up resources for growth.

Additionally, solar panels act as a safeguard against potential blackouts, ensuring uninterrupted operations during grid disruptions.

Becoming energy independent is crucial for restaurants due to two main factors: the risk of future blackouts and the rising costs of energy. 

As restaurants rely heavily on a consistent power supply to operate kitchen equipment, lighting, and HVAC systems, any interruption in electricity can disrupt service and lead to financial losses. 

By investing in solar panels and generating their own energy, restaurants can ensure uninterrupted operations during potential blackouts, safeguarding their revenue and reputation.

How much will solar panels cost my restaurant

The expense of setting up a solar power system for a restaurant can differ widely due to various important factors.

These factors include the restaurant’s size, how it uses energy, where it’s located, the type and quality of solar panels selected, and any additional parts like inverters, mounting systems, and installation costs.

Here are 2 solar quote examples to show how much you could pay for a solar power PV system.

Quote 1: Small to Medium-sized Restaurant

Restaurant Size: Small to Medium Energy Consumption: Moderate

Solar PV System Cost: £30,000

  • Solar Panels (5 kW): £15,000
  • Inverters: £4,000
  • Mounting Structures: £3,000
  • Wiring and Components: £2,000
  • Miscellaneous Costs: £1,000
  • Contingency (10%): £1,500

Installation Cost: £5,000

  • Labor and Installation: £4,000
  • Permitting and Inspection: £800
  • Design and Engineering: £200
 

Total Project Cost: £35,000

 

Quote 2: Large-sized Restaurant

Restaurant Size: Large Energy Consumption: High

Solar PV System Cost: £80,000

  • Solar Panels (15 kW): £40,000
  • Inverters: £10,000
  • Mounting Structures: £7,000
  • Wiring and Components: £5,000
  • Miscellaneous Costs: £2,000
  • Contingency (10%): £4,000

Installation Cost: £15,000

  • Labour and Installation: £12,000
  • Permitting and Inspection: £2,000
  • Design and Engineering: £1,000

Total Project Cost: £95,000

Before spending thousands on a solar power PV system for your restaurant of food-type business it’s worth checking to see what type of solar panel funding is available for your restaurant.

A solar grant via the government may be an option or through the energy company you’re currently using.

Or if you haven’t got let’s say £35k to spend upfront on a solar system then solar finance may be your 2nd best option.

Below we will speak on multiple ways your can fund a solar power system via solar financing models like PPA (power purchase agreements) or maybe a solar loan via a bank or third-party lender.

Government Solar panel Grants for Restaurants

Government Solar panel grants for restaurants in the UK can vary as Govenement do change their criteria on what type of business qualifies for a solar panel grant.

A solar grant for your restaurant can help cover the costs of solar system installations or the grant could cover the entirety of the system and installation.

Just depends on who is handing out the grant and the T&Cs that come with it.

We recommend looking for a solar grant first as this could be your cheapest option and possibly a way of obtaining free solar panels for your restaurant business.

You can head to our solar panel grants page for an updated version of available grant schemes for businesses in the UK.

Solar panel Finance for Restaurants

If a solar grant isn’t available and you’re not wanting to spend thousands on a solar system, then solar panel finance maybe your 2nd best option if you don’t want to front the cost of a solar power system.

When it comes down to solar finance for restaurants PPA (power purchase agreements) tend to be a favourite among businesses as it costs £0 to enter into an agreement, also the solar funder covers any damage and maintenance to the solar system.

Other than Solar PPA for restaurants you can also look into a standard solar loan from your bank or a 3rd party lender.

Below we will talk about PPA’s and solar loans and go through how they work and also how you can still save thousands on electricity bills.

Solar PPA For Restaurants

With a solar power purchase agreement, you as a restaurant owner or affiliate won’t have to worry about installation costs or the full cost of the solar power system itself.

The solar funder covers the full solar system, damage and maintenance.

Instead of your business purchasing electricity from the grid you will be buying from the solar funder at a much discount price.

On average businesses can look to save around 25% up 50% on electric prices but this will depend on daytime usage, available roof space, location and climate.

However, before entering into a restaurant solar PPA the solar funder will conduct a feasible study first on your location to value if a solar PPA would help your business in saving on energy bills over time.

 

Steps to Secure a Solar PPA for a Restaurant

Here are some steps on taking out a solar PPA and how they would work for your restaurant.

 

  1. Energy Audit Review & Assessment: After speaking with a solar team member regarding solar PPA we would need to check your energy data over the last year to establish how much energy your restaurant is using.
  2. Restaurant Solar Integration: Our team will assess your restaurant’s physical layout, roof condition, and sun exposure to determine the viability of installing solar panels.
  3. Agreement Establishment: Once the terms are mutually agreed upon, we will create a Solar Power Purchase Agreement (Solar PPA) that outlines the responsibilities, terms, and financial aspects.
  4. Permit Acquisition and Installation: We will handle the acquisition of any required permits and initiate the installation process. This involves securely mounting solar panels on your restaurant’s roof or property.
  5. Ongoing Monitoring and Maintenance: Following installation, our experts will continuously monitor the system’s performance and manage maintenance tasks to ensure optimal energy production.
  6. Harness Clean Solar Power: Once the system is up and running, your restaurant will start harnessing clean solar energy at the predetermined rate, leading to notable reductions in energy costs.
  7. Regular Invoicing and Reporting: Our billing will be based on the energy generated and consumed. Additionally, we’ll provide periodic reports detailing your solar energy production and the resulting savings.
  8. Renewal Options or System Acquisition: Upon reaching the contract’s end, you’ll have the choice to renew the Solar PPA, buy out the solar system, or opt for its removal by our team.

 

To learn more about what are solar power purchase agreements for businesses and to view solar PPA examples click the highlighted text.

You can also use our Free Solar PPA calculator today to get an estimated price on how much you can save via a solar power purchase agreement for your care home business.

Restaurant Solar Loan

With a solar loan the restaurant would have direct ownership over the solar power PV system.

Meaning if any damage or maintenance is required then you will have to front the bill.

A solar loan for a restaurants means you can have direct access to solar and pay off your system every month.

However, be sure when searching for a solar loan that you have checked your business credit sure first.

your business credit score will determine how much interest APR you could be paying back over the long term.

Here is an example of a solar loan for a restaurant type business.

 

Example Of A Solar Loan

 here’s an example of a solar loan tailored for a restaurant, complete with a financial breakdown and an Annual Percentage Rate (APR) of 4.9%. The loan duration will span up to 10 years. out:

Solar Loan for Restaurant Example

Loan Amount: £50,000
Loan Duration: 10 years
Annual Percentage Rate (APR): 4.9%

Financial Breakdown:

  1. Monthly Payments:
    Monthly Payment = Total Loan Amount / Number of Months
    Monthly Payment = £50,000 / 120 (10 years * 12 months)
    Monthly Payment = £416.67

  2. Total Interest Paid:
    Total Interest = (Loan Amount * APR * Loan Duration) / 100
    Total Interest = (£50,000 * 4.9% * 10) / 100
    Total Interest = £24,500

  3. Total Repayment:
    Total Repayment = Loan Amount + Total Interest
    Total Repayment = £50,000 + £24,500
    Total Repayment = £74,500

 

Important Considerations:

  • The loan term extends up to 10 years, giving you ample time to benefit from the solar installation.
  • The APR of 4.9% is fixed, providing financial predictability.
  • The total repayment of £74,500 includes both the loan amount and interest.

Other restaurant type businesses that also suit solar

here are 7 other businesses similar to beauty salons that would also suit solar, along with reasons based on the appliances they use also these businesses tend to use a high amount of energy.

Solar power can not onlt help businesses save money

  1. Bakeries: Solar panels can power ovens and lighting, reducing energy costs in busy baking operations.
  2. Pizzerias: Solar energy can fuel ovens and kitchen equipment, contributing to sustainability and cost savings.
  3. Ice Cream Parlours: Solar panels can support refrigeration systems for ice cream storage, helping save on energy bills.
  4. Juice Bars: Solar energy can power blenders and refrigeration units, aligning with fresh and sustainable branding.
  5. Sandwich Shops: Solar panels can run lighting and cooling systems, reducing operational expenses.
  6. Cafes: Solar energy can power coffee machines, lighting, and other equipment, promoting eco-friendly practices.
  7. Fast Food Takeaway Shops: Solar panels can supply energy for cooking equipment and lighting, enhancing energy efficiency.
  8. Doughnut Shops: Solar panels can support fryers and lighting, contributing to energy efficiency and savings.

Resources

UK Government Grants schemes for businesses.

https://www.gov.uk/guidance/find-funding-to-help-your-business-become-greener

Ofgems information about business solar funding options.

https://www.ofgem.gov.uk/information-consumers/energy-advice-businesses/find-business-energy-efficiency-grants-and-schemes

Information on tax incentives and schemes for manufacturing companies.

https://www.gov.uk/green-taxes-and-reliefs

https://www.taxinsider.co.uk/green-tax-breaks-for-uk-smes#:~:text=If%20your%20business%20is%20energy,to%20meeting%20set%20energy%20efficiency

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