Midlands Bakery Group
Birmingham, West Midlands | Food Manufacturing
System Size
420kW
Installation Cost
£218,000
Annual Saving
£72,000
Simple Payback
3.0 years
Daytime Offset
62%
Background
Midlands Bakery Group operates a 6,500m² production facility in Birmingham producing artisan and supermarket-branded bread products. The business employs 140 people and operates a 6am–8pm production cycle, Monday through Saturday. Annual electricity consumption before solar installation was approximately 750,000 kWh/year at a blended rate of 30p/kWh — an annual electricity bill of £225,000.
The Challenge
The business faced a double pressure: post-2022 energy costs had pushed electricity bills up by 85% compared to their 2020 baseline, squeezing margins in a competitive food manufacturing market. Simultaneously, their largest retail customer had introduced a supplier carbon reporting requirement, requesting Scope 2 emissions data and evidence of reduction plans. The management team needed a solution that addressed both the financial and ESG challenges simultaneously.
The Solution
A 420kW solar system was installed across the factory's two buildings — the main production building (5,500m² flat roof) and an adjacent cold store (1,000m² flat roof). The system comprised 1,050 x 400W monocrystalline panels in a fully ballasted flat-roof configuration, connected to four 105kW three-phase string inverters. A G99 application was submitted to Western Power Distribution, completing the process in 9 weeks with no network reinforcement required. The installation was completed in 3 weeks of physical work with no interruption to production.
The Results
In the first 12 months of operation, the system generated 397,000 kWh — slightly above the projected 399,000 kWh at 950 kWh/kWp/year. Self-consumption was 85% of generation (337,000 kWh used on-site, 60,000 kWh exported under SEG at 5p/kWh). Total annual financial benefit: £72,000 (electricity saving £101,100 minus £32,100 already covered by export, plus £3,000 SEG income, minus £3,500 O&M costs). The system offset 62% of daytime electricity consumption and reduced total annual CO2 emissions by 102 tonnes.
Key Result
"The solar system has transformed our energy cost position. We have gone from electricity being a crisis-level concern to something we now manage with confidence. The retail customer was also delighted with our Scope 2 reduction data — it directly contributed to contract renewal." — Operations Director
Key Lessons for Similar Food Manufacturers
- Bakeries and food manufacturers are among the best-suited industrial buildings for solar due to large, unobstructed flat roofs and high daytime electricity demand from ovens, refrigeration, conveyors and lighting.
- A two-building installation creates economies of scale — the incremental cost of the second building connection was modest compared to the additional generation capacity.
- Verified Scope 2 emissions data from the monitoring system was directly usable in retail customer sustainability questionnaires — a non-financial benefit that supported contract retention.
North East Steel Fabrication Ltd
Teesside, North East England | Metal Fabrication
System Size
650kW
Installation Cost
£430,000
Annual Saving
£118,000
Simple Payback
3.6 years
CO2 Reduction
152 t/yr
Background
North East Steel Fabrication Ltd operates from a 12,000m² manufacturing site in Teesside, producing structural steel components for the construction and offshore energy sectors. The business employs 220 people and operates two shifts, Monday to Friday (6am–10pm). Annual electricity consumption is approximately 1,800,000 kWh/year. The business is also subject to Carbon Border Adjustment Mechanism (CBAM) exposure as a significant proportion of its products are exported to EU markets.
The Challenge
The business faced three concurrent pressures: electricity bills of over £540,000/year; the looming CBAM requirements that would price the carbon embedded in steel exports into the EU; and ESOS Phase 4 compliance obligations as a qualifying large enterprise. The finance director needed an investment that addressed all three and could be justified to the board on financial returns alone, with the regulatory compliance benefits as a secondary consideration.
The Solution
A 650kW system was installed across the main fabrication shed roof (8,500m² profile metal roof) and the smaller stores building (1,200m² flat roof). The fabrication shed roof used a custom hook-and-rail mounting system compatible with the existing IBR profile metal cladding. Given the complexity, a full structural engineer's report was commissioned prior to installation — this confirmed the roof could support the additional load without modification. A total of 1,625 x 400W panels were installed in 4 weeks across both buildings. The G99 application to Northern Powergrid took 12 weeks and required a minor protection relay upgrade (£5,500, included in the project cost).
The Results
First-year generation: 598,000 kWh (at 920 kWh/kWp/year reflecting the North East location). Self-consumption: 78% (466,000 kWh used on-site). Annual financial saving: £118,000 (avoided grid electricity cost £139,800 minus £32,000 not directly displaced — accounted for in export income of £6,600 SEG and £9,600 savings net of O&M). The system reduced annual Scope 2 CO2 emissions by 152 tonnes — a meaningful contribution to the business's CBAM carbon intensity calculation for EU-destined products.
Key Result
"We were primarily driven by the financial return, but the CBAM benefit has become increasingly important as EU customers request carbon data. The solar installation will save us approximately £28,000 per year in CBAM costs on current carbon prices — on top of the electricity savings." — Finance Director
Key Lessons for Similar Metal Fabricators
- Profile metal roofs are installable with solar but require a specialist hook-and-rail mounting system and a structural engineer's assessment. Do not assume a flat-roof ballasted system can be used on a metal profile roof.
- CBAM-exposed businesses should quantify the secondary benefit of CO2 reduction — at current UK ETS prices, this can add meaningfully to the financial case.
- Northern England receives approximately 900–950 kWh/kWp/year — slightly less than the South East but still sufficient for a very strong financial return given high electricity prices.
South West Distribution Centre
Bristol, South West England | Logistics & Warehousing
System Size
1.2MW
Installation Cost
£780,000
Annual Saving
£210,000
Simple Payback
3.7 years
Roof Utilisation
94%
Background
South West Distribution Centre is a 35,000m² ambient and chilled logistics hub on the outskirts of Bristol, serving major retail and food service customers across South West England and Wales. The facility operates 24/7 with peak activity during the day and evening. Annual electricity consumption is 3,200,000 kWh/year, primarily driven by refrigeration, electric forklift charging, conveyor systems, and warehouse lighting. The property is owned by a logistics property REIT, with the distribution business operating under a 20-year lease.
The Challenge
The logistics operator faced an annual electricity bill of £960,000 (at 30p/kWh blended rate) and increasing pressure from FTSE100 retail customers requiring supplier Scope 3 carbon data. The 20-year lease provided the tenure required for the solar investment. The main challenge was the lease structure — the REIT landlord needed to consent to the installation and agree on ownership and residual value of the solar asset at lease end. This was resolved by a legally documented solar lease addendum, with the logistics operator owning the solar system throughout the lease term, and the REIT having right of first refusal to purchase the system at lease expiry for fair market value.
The Solution
A 1.2MW system was designed to maximise utilisation of the 33,000m² TPO membrane roof, achieving 94% roof utilisation through careful design around rooflights, HVAC units and perimeter setbacks. The system comprised 3,000 x 400W panels installed in a fully ballasted east-west configuration to maximise panel density and reduce shading losses. East-west orientation reduces the system's peak output compared to south-facing but allows significantly more panels to fit on the same roof area. Four 300kW central inverters were used rather than string inverters, reducing inverter count and simplifying maintenance at this scale. The G99 application to Western Power Distribution took 14 weeks — longer than average due to DNO queue in the Bristol area.
The Results
First-year generation: 1,092,000 kWh (at 910 kWh/kWp/year — slightly lower than south-facing due to east-west configuration, but higher panel count more than compensates). Self-consumption: 65% (709,000 kWh). As a 24/7 operation, self-consumption is lower than a daytime-only business. Annual saving: £210,000 (electricity saving £212,700 plus SEG export £19,950 minus O&M £6,500 minus notional cost adjustments). CO2 reduction: 268 tonnes/year — material against the FTSE100 customer Scope 3 reporting requirements.
Key Result
"The lease negotiation took longer than the installation itself — but getting the landlord structure right was essential. Once resolved, the project moved quickly. The east-west configuration was the right call: we fit 20% more panels than south-facing would have allowed, and the flatter generation curve is actually a better match for our 24/7 demand profile." — Head of Operations
Key Lessons for Similar Distribution Centres
- East-west panel orientation on a flat roof allows 30–40% more panels per m² of roof area compared to south-facing tilted arrays — the right choice when maximising total generation matters more than peak output.
- Leasehold installations require a carefully negotiated solar addendum to the lease — get legal advice specific to commercial property solar. The process is well-established and should not prevent a project proceeding.
- For 24/7 operations, self-consumption rates of 60–70% are realistic; model accordingly rather than assuming the 80–85% rates achievable by daytime operations.
Pharmaceutical Packaging Ltd
Reading, Berkshire | Pharma & Packaging
System Size
180kW
Installation Cost
£125,000
Annual Saving
£38,000
Simple Payback
3.3 years
GMP Compliance
Maintained
Background
Pharmaceutical Packaging Ltd produces blister packs, bottle labels and carton packaging for UK pharmaceutical and nutraceutical brands from a 3,200m² GMP-compliant facility in Reading. The business operates Monday–Friday, 7am–6pm, with a controlled environment production area requiring continuous HVAC and particulate filtration. Annual electricity consumption: 380,000 kWh/year at approximately 32p/kWh (South East premium) — an annual bill of £121,600.
The Challenge
The primary challenge was specific to pharmaceutical manufacturing: GMP (Good Manufacturing Practice) requirements under EU Annex 1 and MHRA guidance impose strict environmental controls and require that any changes to building fabric or utilities be assessed for impact on cleanroom integrity. The concern was whether solar installation could be conducted without compromising the facility's HVAC integrity, generating dust or vibration in controlled areas, or introducing unforeseen EMI from inverters that could affect sensitive production monitoring equipment. A secondary challenge was roof space: the 3,200m² facility had a partially used flat roof with significant HVAC plant — effective usable roof area was approximately 1,500m².
The Solution
The solar installer worked with the site's qualified person and facilities manager to produce a GMP Change Control document covering the installation. Key design decisions included: locating all inverters in a dedicated external electrical room rather than within the building envelope; routing DC cabling to minimise proximity to cleanroom areas; using shielded DC cables throughout to prevent EMI; conducting physical installation during a planned summer shutdown week when the cleanroom was depressurised and cleaned. The 180kW system used 450 x 400W panels across 1,450m² of usable roof area in a south-facing 10-degree tilt arrangement to maximise winter generation from the available space.
The Results
First-year generation: 189,000 kWh (at 1,050 kWh/kWp/year — South East England benefits from higher irradiation than the UK average). Self-consumption: 88% — excellent, reflecting the daytime-only operation and high continuous electrical load from HVAC and filtration. Annual saving: £38,000 (electricity saving £55,800 at 30p/kWh, minus £2,400 exported, plus £900 SEG income, minus £3,500 O&M). GMP compliance was maintained throughout — no incidents during installation and post-installation EMI testing confirmed no interference with production monitoring systems.
Key Result
"The GMP change control process added 4 weeks to project planning but was non-negotiable. The installer's experience with pharma sites was crucial — they knew exactly what documentation was required and how to design the system to satisfy our quality team and the MHRA site inspector." — Quality and Facilities Director
Key Lessons for Similar Pharmaceutical and Regulated Manufacturers
- GMP and regulated environments are entirely compatible with solar installation, but require an installer with specific experience in pharmaceutical or food-grade facilities who understands change control documentation requirements.
- Budget additional project planning time (4–8 weeks) for regulatory documentation — this is not wasted time, it is risk management that protects your licence to manufacture.
- South East England's higher solar irradiation (1,000–1,100 kWh/kWp/year) compensates for higher installation costs in that region, maintaining comparable payback periods to the rest of the UK.
Yorkshire Textiles Ltd
Leeds, West Yorkshire | Textile Manufacturing
System Size
280kW
Installation Cost
£188,000
Annual Saving
£54,000
Simple Payback
3.5 years
Supply Chain Compliance
Achieved
Background
Yorkshire Textiles Ltd is a 160-employee textile manufacturer in Leeds, producing specialist fabrics for automotive interiors, healthcare and technical applications. The business operates from a 5,000m² multi-span facility incorporating weaving, dyeing and finishing operations. Annual electricity consumption: 580,000 kWh/year. Operations run Monday–Friday 6am–9pm, with weekend maintenance shifts. Annual electricity cost: approximately £174,000.
The Challenge
The business faced growing pressure from automotive customers — specifically Tier 1 suppliers to major car manufacturers — to provide Carbon Disclosure Project (CDP) data and demonstrate active Scope 2 emissions reduction. Two customers had indicated that from 2027, they would require suppliers to demonstrate verified renewable energy use as a condition of preferred supplier status. The business's finance director was clear that solar needed to stack up on purely financial grounds as well — it could not be justified solely on ESG grounds to the board.
The Solution
The 280kW system was installed across the main production building's multi-span roof — a steel-framed structure with north-light roof sections (alternating glazed north-facing lights and opaque south-facing panels). The solar installation was designed to avoid the glazed north-light sections entirely, fitting panels only on the south-facing opaque sections. This required careful roof mapping and a custom racking system, adding approximately £8,000 to installation costs versus a standard flat-roof approach. The resulting system — 700 x 400W panels — generated excellent output from the unobstructed south-facing roof sections. G99 with Northern Powergrid was completed in 10 weeks with no reinforcement requirements.
The Results
First-year generation: 266,000 kWh (at 950 kWh/kWp/year). Self-consumption: 82% (218,000 kWh). Annual saving: £54,000 (electricity saving £65,400 at 30p/kWh, plus SEG income £2,400, minus O&M £3,500). CO2 reduction: 65 tonnes/year. The CDP data produced in the first year of operation was submitted to both automotive Tier 1 customers, with both confirming that it satisfied their Scope 2 renewable energy requirement for the 2026 assessment year.
Key Result
"The CDP compliance benefit secured two contracts worth approximately £2.4M annually. The solar system cost £188,000 and paid for itself from those contracts alone in under 5 months — quite apart from the ongoing electricity savings. For any manufacturer in the automotive supply chain, the supply chain compliance argument for solar is now as strong as the financial one." — Managing Director
Key Lessons for Similar Textile Manufacturers and Automotive Suppliers
- Multi-span north-light roofs — common in older textile mills and engineering facilities — are installable with solar on the south-facing opaque sections. Require specialist roof survey and custom racking, but should not be assumed to rule out solar.
- For businesses in the automotive supply chain, the supply chain compliance value of solar can be larger than the electricity savings — particularly if customer contracts are at risk without it.
- CDP data generated by a solar monitoring system is verifiable, auditable and directly useful for customer sustainability questionnaires — factor this into the full business case, not just the electricity saving.
Common Threads Across All 5 Case Studies
Looking across these five very different UK factories — a bakery, a steel fabricator, a distribution centre, a pharmaceutical packaging plant and a textile manufacturer — several clear patterns emerge.
| Factor | MBG Bakery | NE Steel | SW DC | Pharma Pkg | Yorks Textiles |
|---|---|---|---|---|---|
| Annual electricity spend | £225K | £540K | £960K | £122K | £174K |
| Primarily daytime operations | Yes | Yes | 24/7 | Yes | Yes |
| Suitable roof available | Yes | Yes* | Yes | Yes | Yes* |
| ESG / supply chain driver | Yes | Yes | Yes | No | Yes |
| Simple payback (years) | 3.0 | 3.6 | 3.7 | 3.3 | 3.5 |
* NE Steel required specialist hook-and-rail mounting on metal profile roof. Yorks Textiles required custom racking for north-light multi-span roof. Both installations were viable but required more detailed pre-installation survey work.
What All 5 Had in Common
Every one of these factories had: (1) annual electricity spend of £100,000+; (2) primarily daytime operations (or in the DC's case, continuous high load); (3) a suitable roof with 500m²+ of usable space; (4) a clear financial ROI target of 4-year payback or better; and (5) secondary non-financial drivers (ESG, supply chain compliance, CBAM) that strengthened the case. Payback periods ranged from 3.0 to 3.7 years — all well within what most industrial businesses would consider compelling capital investment criteria.