Most commercial solar conversations start the same way:
“We’d love to do it, but we don’t want to tie up capital.”
What if you didn’t have to?
A recent hospitality sector proposal demonstrated how a mid-sized UK hotel could install a 123.84 kWp solar system, preserve working capital, and still achieve a projected 3-year payback – structured under hire purchase.
No upfront capital outlay.
And the numbers were hard to ignore.
The System
The proposed system consisted of:
• 123.84 kWp rooftop solar PV
• 192 high-efficiency modules
• Annual generation of 114,176 kWh
• 78.8% on-site consumption
• 26.5% site self-sufficiency
Hotels are energy-intensive operations. Daytime load, kitchens, laundry, HVAC, lighting – the demand profile aligns exceptionally well with solar generation.
But the real story wasn’t the kilowatt-hours.
It was the financial performance.
The Financial Model That Changed The Conversation
Here’s what the modelling showed:
• Total system investment: £76,639
• Internal Rate of Return: 31.77%
• Amortisation period: 3 years 3 months
• Levelised cost of energy: 2.69p per kWh
• 25-year projected net benefit: ~£680,000
Pause there.
A 31% IRR.
Under hire purchase.
For context, most capital projects struggle to clear 12–15%.
This wasn’t a marginal return.
It was infrastructure-level performance.
But There’s A Catch… (In A Good Way)
The system was structured under hire purchase.
Which means:
• No capital outlay on day one
• VAT reclaimed in full
• Fixed monthly repayments
• Full ownership at the end of term
Instead of allocating £76,000 of working capital, the hotel preserved liquidity and allowed operational energy savings to support the finance structure.
In other words:
Solar shifted from being a capital expense…
to becoming a cash-flow strategy.
That’s a very different boardroom discussion.
Why This Worked
This wasn’t a lucky outlier.
The performance was driven by:
• Strong daytime consumption
• Minimal reliance on export rates
• Conservative 3% energy inflation modelling
• Competitive £/kWp system pricing
• Stable long-term site occupancy
When solar is matched correctly to load profile, the numbers compound quickly.
And when financed properly, the capital barrier disappears.
The Bigger Opportunity
Energy prices may fluctuate – but long-term upward pressure is structural.
For energy-intensive businesses, electricity is not a variable luxury.
It is a fixed operating cost.
Solar converts part of that cost into an asset.
In this case, the model showed electricity being produced at 2.69p per kWh – dramatically below grid rates.
Over 25 years, that cost delta compounds into substantial retained profit.
Not just carbon savings.
Margin protection.
Why This Should Get You Thinking
If your business:
• Spends £20,000–£50,000+ annually on electricity
• Has suitable roof space
• Plans to operate long term
• Wants to protect cash flow
Solar no longer needs to be a capital decision.
It can be a financing decision.
And in some cases, it can outperform traditional capital projects on IRR.
That changes the conversation entirely.
Is Every Site This Strong?
No.
Load profile, roof suitability, and energy usage patterns matter.
But what this example demonstrates is something important:
When solar is engineered correctly and structured intelligently, the financial performance can surprise even seasoned finance teams.
This isn’t about green credentials.
It’s about infrastructure that pays for itself – and then continues delivering for decades.
Considering Solar for Your Commercial Site?
At Solar Voltaics, we model real energy data against realistic financial assumptions to determine whether solar makes commercial sense.
We don’t rely on inflated energy forecasts or aggressive inflation modelling.
If the numbers work, they work clearly.
If they don’t, we’ll say so.
Because when structured correctly, commercial solar is no longer just a sustainability decision.
It’s a strategic one.
