If you’ve decided that solar makes sense for your factory – congrats.
You’re on the path to:
✅ Saving thousands per month
✅ Locking in energy costs
✅ Strengthening your ESG position
✅ Boosting long-term profits
Now the question is: what’s the best way to fund it?
There are three main ways to access solar panel funding – and each comes with its own pros and cons.
Let’s walk through each one and help you decide which is right for you.
1. Outright Purchase (Cash) – Maximum Savings, Capital Required
If you have strong cash reserves and want maximum long-term return, an outright purchase delivers the biggest savings. Resulting in:
✅ You pay for the system in full
✅ You own the system from day one
✅ All savings go directly to your bottom line
✅ You can claim full capital allowances (up to 100% tax relief)
Example (on £25,000/month electricity spend):
✅ Monthly solar saving: £17,500
✅ Total system cost: approx. £500,000
✅ Payback time: 2.5 – 3.5 years
✅ 25-year savings: £5.25+ million
✅ Tax relief: up to £125,000
Best for: Highly profitable businesses with surplus cash and no better return on investment (ROI) alternatives.
2. Asset Finance – No Upfront Cost, Full Ownership
This is the most popular option among UK factories.
With cash-positive asset finance, you don’t pay upfront. A solar funder pays for the system, and you repay monthly – usually over 5 years. Resulting in:
✅ No capital outlay
✅ You remain cash positive from day one
✅ You own the system after repayment
✅ You still claim capital allowances
✅ Finance repayments are fixed – your savings are not
Example:
✅ Monthly saving: £17,500
✅ Repayment: £13,000
✅ Immediate net gain: £4,500/month
✅ Ownership after 5 years
✅ Total 25-year gain: £5 million+
Best for: Businesses wanting full ownership without using their capital.
3. Solar Rental – Save Without Owning
With a rental model, you don’t own or finance the system. You simply pay a fixed monthly rental – and start saving immediately. Result in:
✅ No upfront cost
✅ No loan or finance agreement
✅ Provider handles all maintenance
✅ Monthly savings typically 35%
✅ Off-balance sheet solution
Example (on £25,000/month electricity spend):
✅ Saving: £8,750/month
✅ 25-year savings: £2.6+ million
✅ No capital investment or risk
Best for: Businesses prioritising flexibility, simplicity, and clean balance sheets.
Final Thought: No Barriers, Just Options
This year – due to the available solar panel funding options – solar is accessible to nearly every factory, regardless of ownership structure, cash reserves, or credit appetite.
Whether you want to:
✅ Maximise returns
✅ Keep your capital free
✅ Stay off-balance sheet
…there’s a solar solution that works for you.
The key is choosing a trusted provider who can offer all three solar panel funding routes, not just one.
