In an era of fluctuating energy prices and increasing environmental regulations, car dealerships in the UK are under pressure to find cost-effective, sustainable energy solutions. Showrooms, workshops, and EV charging stations require high levels of electricity, making dealerships particularly vulnerable to rising energy costs. Investing in solar energy is one of the most effective ways for dealerships to future-proof their business, ensuring long-term savings and sustainability.
The Rising Cost of Electricity for UK Dealerships
In recent years, UK businesses have seen record-high energy prices, driven by global market disruptions, supply chain challenges, and shifts in energy policies. Although the government introduced support measures like the Energy Bills Discount Scheme (EBDS) for businesses, these are temporary solutions, and energy costs are expected to remain volatile.
According to the UK Government’s Energy Trends report, commercial electricity prices increased by nearly 60% between 2021 and 2023, and they are projected to stay high as fossil fuel dependence gradually decreases (gov.uk). Dealerships, with their high lighting demands, heating, cooling, and electric vehicle infrastructure, are among the hardest hit.
How Solar Can Shield Dealerships from Energy Price Surges
1. Immediate Cost Savings & Reduced Bills
Installing solar panels allows dealerships to generate their own electricity, reducing reliance on the National Grid. With solar energy, dealerships can power essential operations during peak daylight hours—when energy prices are typically highest.
Many businesses see energy bill reductions of up to 47% after installing solar panels (Solar Power Portal). With battery storage solutions, excess solar energy can also be stored and used during non-sunny periods, further decreasing dependency on the grid.
2. Protection Against Future Price Hikes
The volatility of global energy markets means businesses are at risk of unexpected spikes in electricity prices. Investing in solar locks in stable energy costs, protecting dealerships from sudden increases in commercial tariffs. Over time, this stability provides a significant competitive advantage, as businesses that generate their own electricity face lower operational risks.
3. Long-Term Financial Benefits & Government Incentives
While the upfront cost of installing solar might seem daunting, various UK schemes make the transition easier:
✅ The Super Deduction Scheme & Full Expensing Tax Relief – Until 2026, businesses investing in energy efficiency improvements, including solar panels, can deduct up to 100% of the cost from taxable profits (HMRC).
✅ Smart Export Guarantee (SEG) – Dealerships can sell excess solar energy back to the grid, creating an additional revenue stream. Payments for exported electricity can significantly offset initial investment costs (Ofgem).
✅ Low-Interest Green Business Loans – Several UK banks and financing institutions offer low-interest green loans to help businesses invest in solar with minimal upfront capital (British Business Bank).
4. EV Charging & Sustainability Advantages
The UK government has set a 2030 ban on new petrol and diesel vehicle sales, and dealerships are rapidly expanding electric vehicle (EV) infrastructure. However, EV chargers significantly increase energy demands—a cost that will only grow over time.
Installing solar-powered EV chargers is a future-proof solution that:
🔋 Reduces the cost of charging new and used EVs on-site
🔋 Supports sustainability goals, attracting eco-conscious customers
🔋 Enhances dealership appeal for EV buyers
Case Study: Car Dealerships in the UK Going Solar
Many UK-based dealerships are already seeing strong returns on solar investments. For example:
🚗 Porsche Newport – Installed a 166 kW solar system, cutting annual CO₂ emissions by 29.73 tonnes and significantly reducing their electricity bills.
🚗 BMW Bristol – Integrated a 144.97 kW solar panel system, providing reliable power for their showroom and maintenance areas, while lowering their carbon footprint.
These dealerships demonstrate that solar isn’t just a sustainability trend—it’s a practical investment in financial security.
Act Now & Future-Proof Your Dealership
With energy costs fluctuating, waiting too long to adopt solar could mean paying far more for electricity in the years to come. Dealerships that invest in solar energy now can lock in lower costs, maximise government incentives, and prepare for the future of EVs and sustainability requirements.
💡 Thinking about going solar? Contact Next Generation Solar for a free dealership solar assessment today!
