How Solar Power Can Benefit Your Restaurant: 8 Great Advantages

From lower electricity bills to increased property value and environmental wins, solar power offers wide-ranging benefits to restauranteurs.

We’ll run through the top 8 advantages of installing solar panels.

8 Benefits of Solar Power For Restaurants

The benefits of solar for restaurants are a compelling mix of financial and environmental. Let’s take a closer look:

1. Protection against outages

A solar power system helps protect your restaurant from power disruptions, ensuring continuity of service.

While the National Grid is mostly reliable, an extreme weather event, substation fault, or transmission line collapse can plunge your diners into darkness and the kitchen into chaos.

In these potentially disastrous situations, solar energy will keep the lights and ventilation on, the refrigeration running, and the kitchen operating. In this scenario, a solar storage battery plays a crucial role.

Let’s discuss batteries in a little more detail:

How does a solar storage battery benefit your restaurant?

A battery offers valuable energy storage, giving you enhanced control and flexibility over your energy consumption.

• Night trade: Restaurants that trade at night can benefit hugely from solar battery storage. An integrated battery lets you store excess solar energy produced during the day. You can use it after sunset to run the dinner service.
• Day trade: Restaurants that trade exclusively during the day may not need a solar battery since they produce electricity during trading hours. However, in winter, many restaurants use cheaper overnight rates to charge a battery. This provides them with discount energy during darker days.

2. Lower electricity bills

Smart use of solar energy will significantly reduce your energy bills and aid your restaurant’s cash flow.

As restaurants are energy-intensive, adopting a solar strategy delivers substantial savings. A small restaurant can save £1,500 in energy costs a year, while a larger one with an annual electric bill of £12,000 could save £7,500.

In addition, you can earn income by selling excess electricity back to the grid via the Smart Export Guarantee.

3. Earn income with SEG

Energy companies will pay you for each unit of excess electricity you sell to them under the Smart Export Guarantee (SEG) scheme. To give you an idea of what suppliers pay for exported electricity, check the SEG league table.

Note: To sell electricity via SEG, your solar system must be installed by an approved Microgeneration Certification Scheme installer and have a total capacity of less than 5 MW.

4. Reduced carbon footprint

By generating electricity from a renewable source, you meaningfully reduce your carbon footprint. Your restaurant will contribute to a cleaner environment and combating climate change. A 20 kW solar energy system in a small restaurant will prevent an estimated 3 tonnes of carbon emissions from harming the planet.

Additionally, embracing solar energy showcases your commitment to sustainable business practices.

5. Positive customer experiences

Modern customers are increasingly seeking businesses that align with their values. Environmentally responsible businesses attract eco-conscious consumers and appeal more broadly to a market that values green initiatives.

Positive word-of-mouth about your restaurant’s renewable energy transition can boost business and loyalty. Additionally, installing solar presents an opportunity for marketing and promotional activities.

Plus, it can help you hire and keep good employees. Employees are often proud to work for companies that prioritise environmental responsibility.

For larger restaurant groups with Environmental, Social, and Governance (ESG) programmes, a commitment to renewable energy is positive for ESG scores and deliverables.

6. Stable electricity costs

A solar energy system gives you greater certainty about your future electricity costs. Using solar power, you are less exposed to market prices impacted by wars and political turmoil.

You gain greater control over your supply and can manage your energy consumption more efficiently. Certainty around input costs makes financial planning and budgeting easier.

7. Increased property value

Commercial properties with solar installations achieve up to 5% higher prices than buildings without solar. If you own your premises, installing solar PV panels will make the property more attractive to future buyers.

Solar systems also serve to future-proof buildings and businesses. Considering the lower operating costs, greater energy security, and environmental benefits, it’s easy to understand how solar boosts commercial property value.

8. Premium long-term investment

Solar energy systems are excellent long-term investments for restaurants, ensuring energy cost savings for decades. Quality solar panels have a lifespan of 25-30 years and panel maintenance is relatively low-cost.

The return on investment isn’t bad either. Many businesses recoup their solar investment in 10 years; some achieve a payback period of 7 years. If your restaurant’s solar panels last for 30 years and you pay them off in 10, you could enjoy 20 years of profit!

Get a Solar Panel Installation Quote For Your Restaurant

Restaurants across the UK have embraced the power of solar and Eco Happy will be delighted to help your restaurant power up, too.

Complete a quick online form and receive a free, no-obligation quote for a solar installation. As expert solar installers in England and the UK, we have helped over 500,000 property owners make the smart move to clean, green energy. Contact Eco Happy today and receive an excellent offer from our friendly team.

FAQs

Can I claim solar panels as a business expense in the UK?

Yes, you can. Solar panels can be claimed as a business expense through the Annual Investment Allowance (AIA). Up to 100% of your solar expenses can be deducted from taxable profit.

How many solar PV panels does a restaurant need?

A tiny cafe may need only 12-16 panels but a bigger establishment that trades most of the day typically requires over 30 panels while the largest restaurants have close to 100.

How much does a restaurant solar system cost?

The cost of commercial solar systems varies widely depending on the restaurant’s size, location, and operational needs. Here are average cost estimates of fully installed systems for establishments of various sizes: 

Restaurant size	Solar panel system kW size	Estimated cost (incl. installation)	Battery Cost
Small – Mid	22 kW	£22,000 – £34,000	£12,000 – £24,000
Medium	3 kW	£46,000 – £55,000	£25,000 – £40,000
Large	60+ kW	£64,000 – £80,000+	£40,000 – £60,000+

Are solar panels worth it for restaurants?

While restaurant solar systems cost from £20,000 to over £80,000, the numerous benefits of renewable energy usually make solar panels worth it. Reduced operating costs, stable electricity pricing, improved brand and business values, and energy security are some of the many benefits solar energy affords.

Is solar power a good investment if I lease my restaurant property?

If you have a long lease on your restaurant, a solar system might be an investment worth considering. As solar installation increases property value, many landlords are open to fitting panels and may share the expense. If you trade in the premises for 5+ years, the lower operating costs, energy efficiencies, and eco-goodwill will reward you year-on-year.

Final Thoughts

Restaurants looking for sustainable energy solutions are increasingly moving towards solar. The financial benefits of solar, including enhanced business value, are compelling in themselves. Add the environmental benefits and favourable brand image and it’s easy to see solar power as a game changer for restaurants throughout the UK.