Solar Plus Battery vs Battery-Only — UK Factory 2026
Battery-only deals (DSR, Capacity Market) work for pure peak-shaving. Solar plus battery wins for any factory drawing more than 800 MWh/year.
When battery-only beats solar plus battery
Battery-only systems make commercial sense for sites with three specific characteristics:
- High DUoS / triad exposure — sites paying >£30k/year of network charges
- Constrained roof or no suitable solar substrate
- Active in flexibility markets — Dynamic Containment, Capacity Market, DSR participation generates 8–15 p/kWh of additional revenue beyond grid arbitrage
In these cases a 500 kWh-2 MWh battery alone, charging from cheap overnight grid and discharging at peak, can deliver 6–9 year payback — respectable but slower than the 3–5 year payback typical for solar.
When solar plus battery wins decisively
For factories drawing more than ~800 MWh/year, solar plus battery beats battery-only across every metric:
- Capex efficiency — solar at £700/kWp delivers ~10x more annual kWh per £ than batteries alone
- Self-consumption arbitrage — solar generates at retail tariff (28 p/kWh saved), exports at SEG (4–15 p/kWh). Battery alone arbitrages cheap-rate (8 p) to peak (35 p) — less spread
- Combined revenue stack — solar self-consumption + battery flexibility revenue + SEG export = 3 income streams, not 1
- Faster payback — combined systems pay back in 4–6 years vs 6–9 for battery-only
Solar Plus Battery vs Battery-Only — UK Factory 2026 — FAQs
What changes if my factory is in Scotland or Wales?
Mainly DNO connection timelines (faster in Scotland) and grant programmes (Welsh Government Energy Efficiency Loan, Scottish Industrial Energy Transformation Fund). Core economics unchanged.
Is the answer different for a tenant vs owner-occupier?
See our dedicated tenant vs landlord guide for full ownership-model analysis.
How do I get an honest comparison for my specific site?
Submit a quote request with your annual electricity spend and roof type. We model both options against your half-hourly meter data and share the side-by-side NPV/IRR/payback.
Want a side-by-side comparison for your site?
Free desk-based feasibility within 7 working days. Modelled against your actual half-hourly meter data, not industry averages.
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