Sectors · Manufacturing

Solar Panels and PPAs for Manufacturing

Last updated 15 October 2026 · Figures indicative

Short answer: Factories suit solar because process loads — motors, compressors, ovens and HVAC — run through the day, so nearly all generation is used on site at full grid value. Larger plants on HV supplies can host MW-scale systems, and customers increasingly ask suppliers for evidence of lower Scope 2 emissions.

Why manufacturing suits solar

Production shifts line up with peak solar hours, giving self-consumption of 85–95% on many sites.
High, constant base loads mean solar rarely exceeds demand, so little is exported at low value.
Supply-chain customers increasingly ask for Scope 2 reductions in tenders.
Solar can lower demand during DUoS red-band periods when combined with a battery.

Typical system size and savings

A two-shift manufacturing plant with a 750kWp system, using 2,500,000 kWh a year. Generation at 900 kWh/kWp, 90% used on site, grid at 26p/kWh and a PPA at 12p/kWh.

Illustrative year-1 figures — your site will differ
Measure	Result
Annual generation	675,000 kWh
Solar used on site	607,500 kWh (24% of demand)
Year-1 PPA saving vs grid	£85,050
Carbon avoided	≈135 tCO₂e/yr

Grid rate within 24–28p/kWh (August 2026); PPA rate within 10–14p/kWh; carbon factor 0.2 kgCO₂e/kWh. Exported power is normally the provider's.

Roof and site considerations

North-light and saw-tooth roofs need careful layout; ground-mount or car-park canopies can add capacity.
HV-connected sites connect solar on the LV side via existing transformers or a new one.
A G99 application and protection study are standard at this scale.
Hot processes, extraction outlets and roof plant reduce usable area.

Funding options for manufacturing

PPAs keep capital free for production equipment and transfer performance risk. Profitable manufacturers who own their site often buy, using the Annual Investment Allowance or first-year allowances. Compare routes in our commercial solar finance guide and the PPA vs buying comparison, or read our complete guide to solar PPAs.

Sector-specific risks

Shutdown weeks: summer shutdowns can push output to export, so check how the PPA prices it.
Site expansion: agree how roof works or extensions will be handled during the term.
Credit: funders assess the operating company's accounts over the contract length.

Solar for manufacturing: FAQs

How much of a factory's electricity can solar supply?

Typically 15–35% of annual demand for a roof-mounted system, depending on roof area and shift patterns. The share is lower for energy-intensive plants and higher for light manufacturing with large roofs.

Can solar connect to a high-voltage supply?

Yes. On HV sites, solar usually connects on the low-voltage side of a site transformer. The installer designs protection to meet the DNO's G99 requirements; a new transformer may be needed for very large systems.

Does solar help with ESG reporting for customers?

Yes. Electricity from on-site solar reduces your market-based Scope 2 emissions, and generation metering gives auditable data for supplier questionnaires and carbon reports.

What happens during factory shutdowns?

The system keeps generating and the surplus is exported. Under most PPAs export belongs to the provider, so you only pay for what you use; check the contract for any minimum-take clause.

Sources

Price ranges for larger systems, running costs, batteries and PPA rates are indicative market ranges from UK installer, funder and market sources; no official series exists above 50kWp.

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