How much does delaying solar actually cost?
We crunch the numbers.
Delaying investments in your business can often feel like the safer choice. No big hit to the budget, no project to manage, no disruption to “business as usual”. That’s why solar panels have sat in the “good idea, not this year” pile for many UK businesses.
But doing nothing is a decision in itself. For UK businesses, average gas prices remain around twice as high as they were at the beginning of 2021, while business electricity prices are more than 80% higher. With global conflicts continuing to influence British bills, prices remain volatile with no guarantee they’ll fall in the near future.
In this article, we explain the drivers behind rising energy bills and compare the cost of installing solar panels and batteries now, versus delaying the decision. While the figures look at a 20-year period to reflect the lifetime value of solar, your savings could start from day one. Read on for the results.
What makes up a business energy bill?
Back in 2021, business electricity prices were around 50% lower than they are today. The increase since then has been driven by several factors:
Rising non-commodity costs: And as of mid-2026, non-commodity charges (network costs, policy levies, balancing charges) now make up more than 60% of a typical business electricity bill. Several stepped up sharply this April, including Transmission network charges, the Nuclear RAB levy and the Energy Intensive Industry relief scheme – highlighting that not every increase in electricity costs is driven by wholesale prices alone.
Volatile wholesale energy prices: The UK’s electricity costs are very closely linked with the price of gas – which makes them vulnerable to geopolitical events around the globe.
Since 2021, the UK has experienced two major energy price shocks – the first caused by Russia’s invasion of Ukraine in 2021 which resulted in targeted government support for households and energy-intensive sectors. Just as many businesses were hoping for a return to energy cost stability, ongoing tensions around Iran and the Strait of Hormuz in 2026 have led to further volatility and energy price pressures.
So, even if wholesale prices soften, total business electricity costs still have the potential to keep rising. The real question now isn’t “Can we afford to install solar panels?”, it’s “Can we afford to wait?” and “Are there smarter ways to help manage the capital costs?”
What influence does installing solar and batteries have on an energy bill?
We often get asked how much impact installing solar and a battery can have on your bill. The answer is huge.
By optimising when you charge and discharge your battery you can dictate when you are drawing power from the grid. In peak times (4 – 7pm), energy is often much more expensive, so reducing your usage between these times can add up to some serious savings.
Combine that with savings from using solar power from your system, and potential earnings from any exported power, and you can have a significant impact on your annual bill.
Installing solar and storage can also open the door to reviewing the fixed charges you pay for your grid connection. If a battery consistently reduces your maximum imported power, it may be possible to apply to your network operator to reduce your Available Capacity limit and the associated fixed capacity fees, permanently lowering the fixed capacity fees tied to your connection.
“We are extremely impressed by the expertise and commitment both to sustainability and to great service displayed by the installation team.
“Installing solar is easy. It’s good for business and it’s good for the planet. I really can’t think of a reason not to do it.”
Matthew Stevens, MD, bigHead
How much does it really cost to install solar panels? And how much to do nothing?
We’ve modelled an example of the financial impact of meeting your total electricity needs from the grid, versus using solar and batteries to combat rising energy costs, and create a shield against volatile energy cost pressures for years to come.
Example: A large manufacturer using 3.54 GWh of electricity every year choosing to install 1,050kWp of solar or 2,365kWp solar + 788kWp battery storage. See the full data behind these graphs.
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“We have every aspect of the roof that could be covered in panels, covered. The solar energy will help us offset rising energy costs, but will also generate huge environmental savings, further reducing our CO2 emissions, and allowing fabricators to benefit from the saving.”Darren Woodcock, Operations Director Deceuninck
The cost of doing nothing for our worked example in Manufacturing? Millions.
It’s important to remember that payback is only part of the picture. While the larger solar and battery system takes longer to recover its upfront cost, it also delivers significantly greater long-term value by generating more electricity on site, reducing grid imports even further and creating additional export revenue.
Additionally, commercial solar systems are designed to operate for decades, meaning that once they’ve paid for themselves, they continue reducing electricity costs year after year. Add time-matched renewable electricity supply and battery storage, and solar becomes the foundation of an energy strategy that keeps your business one step ahead of the energy transition.
For a manufacturer this size, doing nothing could cost around £2.1 million more over the next decade than investing in solar, or around £3.8 million more than investing in a larger solar and battery storage system. That’s money that could be reinvested in the business instead of being spent on electricity. What could your business do with that extra headroom?
How can you finance your commercial solar installation?
Making this purchase might be easier than you think. There are several ways to fund your solar installation:
Capex purchase
Pay for the system up front, fully owning your asset from day one. This offers the fastest ROI, and you may be able to use the full system cost to offset your taxable profit.
Asset finance
Asset finance lets you spread the cost over several years rather than paying upfront. Your business still owns the system, but ROI will take a little longer.
Power Purchase Agreement (PPA)
A PPA lets your business benefit from solar without funding or owning the system yourself. A third-party investor funds, owns and typically maintains the installation, while you buy the electricity it generates at an agreed discounted rate.
So, how much is standing still really costing you?
Weighing up the decision on solar can take time – getting the right people on board, making the business case. While holding off on making the investment can seem prudent, there are big financial implications the longer you wait. Installing solar next year instead of this year doesn’t just delay savings, it means those savings are lost forever. Doing nothing isn’t a neutral decision.
With Good Energy, we’ll model exactly what solar and battery storage could mean for your business: the upfront cost, the payback period, and the impact on your bills over the next decade. It’s free, tailored to your site and consumption, and comes with no obligation to proceed.
See how our business customers are already taking control
The data behind our graphs
Example: A large manufacturer using 3.54 GWh of electricity every year choosing to install 1,050kWp of solar or 2,365kWp solar + 788kWp battery storage.
Installation costs correct as of July 2026. Assumes electricity prices remain at today’s rates. In reality, if electricity prices rise, the financial value of generating more of your own power is likely to be even greater.
These are illustrative examples of one site. The actual savings depend on your site, your consumption pattern and your tariff, which is exactly what we can model for your business, for free, with no commitment. If your site qualifies for Energy Intensive Industry relief, your baseline will differ.
| Do nothing | 1,050kWp solar | 2,365 kWp + 788 kWp battery | |
| Capital investment | £0 | £600,762 | £2.66M |
| Annual electricity bill (2026 rates) | ~£759,000 | ~£547,000 | ~£377,000 |
| Expected first year saving | £0 | £211,576 | £381,825 |
| 10-year total electricity spend (not including cost of installation) | £7.59M | £5.47M | £3.77M |
| Self-consumption percentage | 0% | 30% | 57% |
| ROI period | n/a | 2.8 yrs | 7 yrs |
| 10-year operating benefit | £0 | £2.12M | £3.82M |
| 20-year operating benefit | £0 | £4.23M | £7.64M |
| 10 year net benefit (after CAPEX) | £0 | £1.51M | £1.16M |
| 20-year net benefit (after CAPEX) | £0 | £3.63M | £4.98M |
