Why the commercial case for solar panels and battery storage has never been stronger

By-lined by Chris Ruddock, Sales Director, Centreco 

For years, solar and battery storage have been deferred as a sustainability investment for later down the line, when the timing felt right and the commercial returns were clearer. 

Today, two core pressures being experienced in the energy market are, ironically, making the numbers much clearer, and supporting commercial case for investment.

Two pressures equal one direction

The energy market is currently experiencing pressure from two directions at once, and both are making the case for on-site generation and storage stronger. 

• Challenge one: Wholesale price volatility. Despite some periods of relative calm since the energy crisis of 2021-22, global markets remain unsettled. The ongoing instability in the Middle East continues to create uncertainty, and organisations that rely entirely on grid-imported electricity remain exposed to price movements that can’t be predicted or controlled.

• The solution: On-site storage. When wholesale spreads widen i.e. when the price gap between overnight lows and daytime peaks grows, battery storage can deliver much more value. The arbitrage opportunity (buying cheap electricity overnight to use during expensive peak periods) increases, and the financial return on storage investment improves accordingly. 

• Challenge two: Non-commodity charges. These are rising steadily, and according to Ofgem, they will continue to do so. They are the mechanism through which the UK funds the long-term transformation of its energy system, and they’re baked into the electricity bill regardless of what happens in wholesale markets. 

• The solution: On-site generation and storage. From April 2026, non-commodity charges are expected to account for around 65% of the average commercial electricity bill (source: Ofgem). Every kilowatt-hour an organisation generates and consumes on-site is a kilowatt-hour that avoids at least a proportion of those charges. Thus, as the charges rise, so does the value of avoided exposure. 

Making the payback maths add up 

Payback periods for capital expenditure on solar PV and battery storage shorten when the costs being avoided are higher; a direct consequence of the current cost environment. 

A solar and storage system that might once have carried a seven or eight-year payback will look very different when set against an electricity bill that is both more expensive and more structurally inflated than it was even two or three years ago. Modelled correctly to account for avoided non-commodity charges, wholesale arbitrage from storage, and the long-term trajectory of regulated costs, and for some organisations, delaying investment may itself increase exposure to rising energy costs 

Instead of watching and waiting, the window for the strongest returns may already be open. 

Designed for the cost environment ahead 

At Centreco, we design solar and storage systems with the full cost structure of electricity in mind, not just the unit rate. That means modelling self-consumption against a realistic view of how non-commodity charges are applied, how storage can shift load away from expensive system windows, and how an integrated approach to tariff design (how your supply contract is structured to align with when you generate and discharge) can compound the commercial return. 

It also means thinking beyond the initial installation. A well-designed system, aligned to how a site actually operates, can continue to deliver value as the cost environment evolves. In a market defined by structural inflation, that long-term stability becomes increasingly valuable. 

The grey clouds in today’s energy market are not going away any time soon. For organisations ready to act, the silver lining is real and potentially more valuable every day. 

*Projected savings, payback periods and operational benefits will vary depending on site demand profile, tariff structure, system design and future marketing conditions.