The upfront cost might put off some business owners, but there are plenty of options open to you. One option is asset finance: providers are generally keen to lend against green assets, knowing the annual energy bill savings you make help cover your repayments.
It is also worth remembering that solar PV systems qualify for tax relief under the Annual Investment Allowance.
Are Industrial Solar Panels a Qualifying Purchase Under the Annual Investment Allowance?
Yes. The Annual Investment Allowance lets you claim for a range of plant or machinery purchases, up to £1m a year, and industrial solar panels qualify. Solar PV is special-rate plant: above the AIA, you can claim a 50% first-year allowance, with the remaining balance carried forward at a 6% writing-down allowance.
Through the AIA, you deduct the cost of your industrial solar panel installation from your business's taxable profits. At the 25% main rate of corporation tax, a system costing £166,600, claimed in full under the AIA, would cut your corporation tax bill by £41,650 - bringing the effective cost down to around £124,950.