Manufacturing

Why this sector

Manufacturing is the strongest economic sector for commercial solar in the UK, full stop. Three structural factors drive this: large rooftop areas providing capacity, daytime-heavy electricity profiles delivering high self-consumption, and corporation-tax-paying status enabling full capture of the 50% First Year Allowance. The economics are robust enough that capital purchase or green loan finance dominates the structures we recommend. Manufacturing operations rarely benefit from PPA structures because the lifetime saving gap (typically £400k–£1m on a £500k system over 25 years) is too large to justify, except where capital constraints are binding. The key strategic question for most manufacturers is sizing: oversize and you give SEG income at 8p when self-consumption would have saved 25p; undersize and you leave value on the table. We model the optimal size against actual half-hourly demand data, not headline annual consumption. The right answer is often 70%–90% of peak summer midday demand — enough to absorb most generation directly, with modest export at the shoulders of summer days. Battery storage tips the calculation toward larger systems where the economic case for storage stacks up alongside it.

Worked example

Pitfalls to watch

• Roof condition often the binding constraint — older industrial roofs may need re-roofing first
• Heavy plant on the roof (HVAC, dust extraction, gantries) can sterilise capacity if not designed around
• DNO connection capacity in industrial estates can be limited — early G99 enquiry is essential
• Connected demand response and battery storage can transform economics — worth modelling alongside PV
• Rate-capped supply contracts can mask the true value of self-consumption — confirm contract terms before sizing

Recommended finance structures