Independent country house hotel, North Wales · 120kWp
120 kWp (annex roof) commercial solar PV installation with combined grant + tax relief stack delivering 3.4 years post-tax payback on £96,000 gross capex.
Anonymised composite case study
Names, dates and exact financial figures have been changed to preserve client confidentiality. Project structure, funding combinations, technical configuration, and order-of-magnitude figures are real and based on completed work. Full editorial disclosure on the about page.
Project snapshot
| Sector | Independent hotel · 36 rooms · spa |
| Location | North Wales (Grade II listed main house) |
| System size | 120 kWp (annex roof) |
| Battery storage | None |
| Gross project capex | £96,000 |
| Grant value | £0 (no direct grant) |
| Year-1 tax relief | £24,000 (Full Expensing yr 1, 25% CT) |
| Net effective cost | £72,000 (after loan) |
| Annual savings/revenue | £31,200/year |
| Post-tax payback | 3.4 years |
| CO2 saving | 32 tCO2e/year |
| Year commissioned | 2024 |
Context
The hotel is a 36-room independent country house property in North Wales — a Grade II listed Victorian main house with a 1980s-built conference annex (unlisted, 650 m² flat roof). The hotel operates a 14-bay spa, restaurant for 80 covers, and 8 self-contained cottages on grounds. Annual electricity import: 480,000 kWh; gas: 1.1m kWh. The business is a family limited company with three director-shareholders.
In 2023, the property's commercial energy contract came up for renewal at almost double the previous fixed rate (from 14p/kWh to 27p/kWh). The board approved an energy strategy review with three priorities: lock-in lower energy costs, reduce carbon footprint to support corporate event bookings, and protect operating margin against further price rises.
The challenge
Three constraints shaped the approach:
1. **Listed building status of the main house.** Grade II listing meant no rooftop solar on the principal elevation. The conference annex roof was unlisted and offered 650 m² of available area. 2. **Capital availability.** The family business had limited free cashflow — directors preferred a finance route that preserved capital for routine fit-out and refurbishment. 3. **Listed Building Consent for cabling.** Even on the unlisted annex, cabling routes through the main building required Listed Building Consent (LBC) — adding 4 months to project lead time.
The site's load profile was strong for solar — pool plant operating 14 hours per day, restaurant kitchen high mid-day demand, laundry running 6 days per week — projected self-consumption was 78%.
Funding approach
We mapped the funding stack:
1. **Business Wales / Development Bank of Wales loan.** As a Welsh trading business, the hotel qualified for a DBW Flexible Investment Fund loan at 3.2% over 7 years. Loan offered: £86,400 (90% LTV against the system asset). 2. **100% Full Expensing.** As a limited company, full year-one corporation tax relief on the £96,000 capex. 3. **SEG income.** Good Energy Solar Savings at 13p/kWh fixed for 12 months. Projected export 22,000 kWh/year. 4. **No direct capital grant.** Welsh Government solar-specific grants were not active for hospitality at the time. We recommended re-checking Business Wales annually for grant windows.
The project economics post-tax-and-loan: - Project capex: £96,000 - DBW loan covered: £86,400 (£9,600 cash deposit) - Full Expensing year-one tax saving: £24,000 - Effective net cash position year 1: -£9,600 (deposit) + £24,000 (tax saving) - £14,800 (year-one loan payments) = +£-400 net - Year-one savings: £28,000 self-consumption + £3,200 SEG = £31,200
Outcome & performance
The project commissioned in March 2024 after a 9-month total lead time (3 months of LBC + 6 months of DNO + design). Year-one performance:
- Annual generation: 110,000 kWh (modelled 108,000) - Self-consumption: 84,700 kWh (77% — modelled 78%) - Annual saved import: £29,645 - SEG export: 25,300 kWh × 13p = £3,289 - **Total annual savings/revenue: £32,934** (versus £31,200 modelled) - Loan repayment: £14,840/year (£1,237/month) - Net annual benefit (after loan payment): £18,094 - CO2 saving: 34 tCO2e/year
The hotel achieved Green Tourism Gold in 2024 and reports 22% growth in corporate event bookings since installation. The directors have approved a second-phase installation: 60 kWp ground-mount on adjacent paddock land, scheduled for 2027.
Lessons learned
- Listed building solar is almost always on ancillary buildings, not the principal elevation — engage a heritage architect 12+ months ahead.
- Development Bank of Wales is a real source of competitive renewable energy finance for Welsh trading businesses.
- Hotel pool + restaurant + laundry load profile is unusually strong for solar self-consumption — 75-85% achievable.
- Listed Building Consent for cabling routes is often forgotten — add 3-4 months to project programmes for any listed building project.
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