Solar PV for factories
Manufacturing sites have the strongest commercial solar case in the UK. High continuous daytime demand drives 75-90% self-consumption; large industrial roofs deliver hundreds of kW; capital allowances cut effective year-one cost by 25%. Payback typically 3-4 years.
Factory solar — quick reference
3-4 yrs
Typical payback
75-90%
Self-consumption (single-shift)
100%
AIA + Enhanced Capital Allowances
£0.04-0.06
/kWh effective lifetime cost
25 yrs
Panel performance warranty
50-1,000kW
Typical system size range
Factories combine the two factors that drive commercial solar economics most: continuous high daytime electricity demand, and large flat or shallow-pitch industrial roof areas. The match between demand profile and PV generation profile is exceptional — most factories self-consume 75-90% of their solar generation directly, with only the residual (typically 10-25%) exported under the Smart Export Guarantee.
Combined with capital allowances on the install, manufacturing-sector solar typically returns IRR figures of 18-28% over a 25-year horizon — competitive with most internal capital projects manufacturing CFOs evaluate. We provide a full IRR + cash-flow model as part of every commercial quote.
75-90%
Self-consumption (typical)
3-4 yrs
Payback period
18-28%
IRR over 25-year horizon
£0.03-0.05
/kWh effective cost
Manufacturing subsectors
Continuous refrigeration, cleaning, ventilation and chiller demand makes food production one of the strongest fits for solar. Particularly attractive for cold-storage and brewery operators where electricity is the dominant utility cost. Halal and kosher production often have ESG pressure from buyers that solar credibly addresses.
Nissan supply chain across the North East, Hitachi Rail at Newton Aycliffe, Britishvolt-adjacent operations near Blyth. Strong tier-1 and tier-2 customers with carbon-reporting requirements from OEM contracts that solar measurably satisfies.
Cleanroom HVAC and process heat drive high continuous demand. Strong fit for solar plus battery storage for backup of cleanroom-critical loads. ESG and Scope 2 disclosure increasingly required by NHS / large buyers.
Welding, machining and finishing operations have spiky power profiles. Solar covers baseload demand; pairing with commercial battery handles peak shaving. Common in Tees Valley industrial sites.
Continuous machine operation through the working day matches solar generation almost perfectly. Self-consumption typically 80-90%. Strong economic case before subsidies; very strong after.
Smaller operations with mostly daytime working patterns. Solar PV plus a modest battery covers most operational hours. Good fit for businesses in serviced industrial estates across the North East.
Process heat decarbonisation
For manufacturing sites with process heat demand below 80°C (laundries, food production, light pharma, plastics), modern high-temperature heat pumps can replace gas-fired process heat. Combined with on-site solar PV, the economic case is exceptional — solar generates the electricity that the heat pump uses to produce the heat, completing a closed-loop decarbonisation of both Scope 1 (gas combustion) and Scope 2 (electricity) emissions.
Typical payback for integrated solar + commercial heat pump on a manufacturing site is 4-6 years — slightly longer than solar alone but materially shorter than commercial heat pump alone, because the solar-generated electricity dramatically improves heat pump running cost. See commercial heat pumps for the heat pump side.
Tax treatment
Commercial solar PV qualifies for capital allowances on the full installed cost, claimed via the Annual Investment Allowance (AIA) up to the £1m threshold and via 18% main-pool rate writing-down allowances beyond that.
For a typical UK limited company at 25% Corporation Tax rate, a £250,000 factory solar install delivers approximately £62,500 of year-one tax relief via AIA. Effective net cost in year one: £187,500. Combined with the bill savings, this typically delivers cash payback well inside 4 years even before accounting for further years' tax efficiency.
We work with your tax advisor or accountant to confirm the specific treatment for your company structure, year-end, and existing AIA usage. Always worth running the numbers with your accountant rather than relying on generic figures; we provide the input data they need.
ESG and tendering
Manufacturing supply chains are tightening on carbon. OEM tier-1 contracts now routinely require Scope 1 and Scope 2 emissions disclosure, B Corp recertification cycles include carbon performance, and major buyers (NHS, BAE, Nissan) require declining carbon trajectories from suppliers.
On-site solar PV is the most direct, demonstrable, verifiable Scope 2 reduction lever available. A 250kW factory solar install generating 225,000 kWh per year directly avoids approximately 46.6 tonnes CO2e annually at current grid factors. We provide annual generation reports, MCS certificates and certified carbon avoidance figures for ESG disclosure, B Corp submissions, CDP reporting, and tender documentation.
North East manufacturing hotspots
Specific manufacturing clusters in our service area where the factory-solar case is strongest:
UK's largest car factory and the growing AESC battery manufacturing cluster. OEM Scope 3 carbon pressure on tier-1/2 suppliers — solar is increasingly expected.
Net Zero Teesside is the largest industrial decarbonisation programme in the UK. Manufacturing tenants in the wider Freeport zone benefit from grid investment and ESG-friendly regulatory environment.
Hitachi Rail UK's train manufacturing plant and its supply chain. Strong PSDS funding routes for public-procurement manufacturers; private-sector capital allowances elsewhere.
MSD's pharmaceutical operations and a broad light-manufacturing base across the south Northumberland industrial estates. Cleanroom HVAC loads pair well with solar.
Offshore Renewable Energy Catapult site, port-adjacent fabrication, and growing offshore-wind component manufacturing. ESG context is industry-native.
Tier-1 and tier-2 Nissan supplier manufacturing plants. Our home town. Same-week site visits and fast project turnaround.
Factory solar cost by size
Factory solar pricing in 2026 is largely linear at scale. Per-kWp installed cost ranges from about £900 (small <50 kW) down to £700 (large 500 kW+) — economies of scale on scaffolding, balance-of-system and project management. Below is a guide to each common system size for UK industrial sites, before any Annual Investment Allowance (AIA) or Enhanced Capital Allowance (Freeport) tax relief.
| System size | Panels | Roof area needed | Installed cost | Annual yield | Payback* |
|---|---|---|---|---|---|
| 30 kW | ~75 panels | ~180 m² | £26,000-£32,000 | ~27,000 kWh | 3-4 yrs |
| 50 kW | ~125 panels | ~300 m² | £42,000-£50,000 | ~45,000 kWh | 3-4 yrs |
| 100 kW | ~250 panels | ~600 m² | £82,000-£95,000 | ~90,000 kWh | 3-4 yrs |
| 200 kW | ~500 panels | ~1,200 m² | £160,000-£180,000 | ~180,000 kWh | 3.5-4.5 yrs |
| 500 kW | ~1,250 panels | ~3,000 m² | £385,000-£425,000 | ~450,000 kWh | 4-5 yrs |
| 1 MW (1,000 kW) | ~2,500 panels | ~6,000 m² | £720,000-£820,000 | ~900,000 kWh | 4-5 yrs |
*Payback shown is simple payback at typical industrial electricity rates (27p/kWh blended) and 80% self-consumption. With AIA / Enhanced Capital Allowances the post-tax payback is 25-40% shorter. Yields based on 900 kWh/kWp typical UK industrial rooftop.
By size — what to expect
Sizing depends on three things: peak daytime electrical demand, available unshaded roof area, and DNO export capacity. We model all three from your half-hourly meter data during the free survey.
Typical for a 200-300 m² unit with single-shift operation. Covers most lighting + small machinery demand. Common AIA-funded retrofits at this size deliver £27,000 installed, ~£3,500/yr saving, 4-yr payback.
Sweet spot for many SMEs — 800-1,200 m² unit, ~£42,000 installed. Generates ~45,000 kWh/yr. AIA covers 100% in year one. Payback inside 4 years for daytime-heavy operations.
Common request for 2,000-2,500 m² industrial unit. Generates ~90,000 kWh/yr — covers a meaningful slice of base-load consumption. Combined with a 50-100 kWh battery for peak shaving, total saving £15-18k/yr.
Large industrial roof (4,000+ m²) with sustained daytime load. Typical 24-hour operations often pair this with a 200 kWh battery to capture more value at night. DNO G99 application essential — we handle it.
Sub-1MW threshold — simplified DNO connection under G99 fast-track. Full expensing applies (post-AIA cap). PPA or asset-finance routes often preferred at this scale to preserve capital for core operations.
Rooftop + ground-mount combination typical. PPA structure dominant. For Teesside Freeport sites, Enhanced Capital Allowances stack with full expensing — among the most tax-efficient capex investments available in the UK. IETF can fund deep retrofits at this scale.
Our accreditations
MCS Certified
NAPM47760
Heat pumps & solar
NICEIC Approved
D124458
Electrical contractor
Gas Safe Register
947841
Gas appliances
Heat Geek Trained
Heat pump design specialists
TrustMark
Government endorsed
Quality scheme
SafeContractor
Approved
H&S accredited
ISO 9001
2015
Quality management
ISO 14001
2015
Environmental management
ISO 45001
2018
OH&S management
PAS 2030
:2019
Retrofit standard
NAPIT
Member
Electrical inspection
F-Gas Certified
Air conditioning refrigerant
MCS Certified
NAPM47760
Heat pumps & solar
NICEIC Approved
D124458
Electrical contractor
Gas Safe Register
947841
Gas appliances
Heat Geek Trained
Heat pump design specialists
TrustMark
Government endorsed
Quality scheme
SafeContractor
Approved
H&S accredited
ISO 9001
2015
Quality management
ISO 14001
2015
Environmental management
ISO 45001
2018
OH&S management
PAS 2030
:2019
Retrofit standard
NAPIT
Member
Electrical inspection
F-Gas Certified
Air conditioning refrigerant
Every accreditation listed is independently verified. We carry the registration numbers — ask for any on request.
Free half-hourly meter data analysis, full site visit, designed system within two weeks. IRR and cash-flow model included.
