In today’s economic climate, UK businesses are under unprecedented pressure from high energy costs. For Finance Directors, identifying sustainable solutions that deliver both financial and environmental benefits has become a strategic priority. Commercial solar PV systems provide a compelling opportunity to address rising energy operating costs while supporting sustainability goals through on-site renewable energy generation.

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Understanding the Business Case for Solar PV for Business

The financial landscape for commercial solar PV has changed significantly in recent years. With electricity prices reaching record highs and ongoing volatility in energy markets, more businesses are seeking to secure their energy future through self-generation.

A Strong Business Case: The Numbers Behind Solar PV

When evaluating the business case for commercial solar PV, it’s important to consider the key numbers that drive return on investment and long-term savings.

Commercial solar PV installations typically cost between £600 and £800 per kilowatt peak (kWp), with a 200kWp system (approximately 450 panels) costing between £120,000 and £160,000. In 2024, most installations recovered their costs within just 2.5-4 years—and that’s before considering potential Capital Allowance tax benefits.

Compared to grid electricity, currently priced above 21p per kWh, a Centreco solar energy system can deliver fixed-price electricity at approximately 4p per kWh over a 25-year timeframe. This leads to long-term savings while protecting your business against future energy price increases.

For Finance Directors, this presents a clear opportunity to transform unpredictable energy overheads into a controlled, fixed cost—creating greater certainty for financial forecasting and planning.

Key Financial Considerations for Commercial Solar PV Investment

When evaluating commercial solar PV for your business, several financial factors require careful consideration:

Long-term Financial Stability

With energy prices predicted to remain high, commercial solar panels effectively secure your electricity at a fixed price, significantly improving financial predictability. This protection against market volatility is particularly valuable given the current economic climate.

 Tax Efficiency Opportunities

The capital expenditure for commercial solar installations may qualify for tax benefits through Capital Allowances, further enhancing the financial case for a solar PV system. Consult with your tax advisors to understand how these benefits might apply to your specific situation.

Asset Value Enhancement

Beyond operational cost savings, solar installations can increase property values. As sustainability becomes increasingly important to businesses, properties with renewable energy infrastructure tend to command higher valuations and greater market appeal.

Financial Metrics: Measuring Return on Investment

Finance Directors should focus on several key metrics when assessing the commercial viability of solar PV investments:

Payback period analysis: Most commercial systems achieve payback within 2.5-4 years against current energy prices. This relatively short payback period makes solar PV an attractive proposition compared to many other capital investments.

Explore real-world examples with our case studies.

Long-term value generation: Over a 25-year lifespan (the standard performance warranty period for tier-one panels), a solar installation will continue generating value long after recovering the initial investment. Once you’ve purchased the system, you will own a low-cost power generation system fuelled by a carbon-free resource: sunlight.

ESG and carbon reduction benefits: Commercial solar installations reduce carbon footprints, enhancing sustainability credentials in an increasingly environmentally conscious business landscape. This supports compliance with emerging regulatory requirements and stakeholder expectations.

Find out more about the financial benefits of solar PV today. 

Book a call back with one of our consultants.