Commercial Solar Panel FAQs
Everything you need to know about commercial solar panels for UK businesses. Click any question to view the detailed answer.
Cost Questions
How much do commercial solar panels cost in the UK?
Commercial solar panels cost £600-£1,000 per kWp installed. A typical 100kW system costs £75,000-£100,000. Costs vary based on system size, roof complexity, and specific requirements. Most businesses see 3-5 year payback periods with 14-20% annual ROI.
What is the payback period for commercial solar panels?
Typical payback periods are 3-5 years for commercial solar installations. This depends on electricity costs, system size, and energy consumption patterns. Businesses with high daytime electricity use see faster payback. After payback, enjoy free electricity for 20+ additional years.
How much can my business save with solar panels?
Businesses typically save 50-70% on electricity costs. A 100kW system can save £15,000-£25,000 annually depending on consumption and electricity rates. Over 25 years, total savings often exceed £400,000. Savings increase as grid electricity prices rise.
How much does a 100kW solar system cost?
A 100kW commercial solar system typically costs £75,000-£100,000 fully installed. This includes panels, inverters, mounting, installation, and DNO connection. The system generates approximately 85,000 kWh annually, saving £18,000-£25,000 per year. After AIA tax relief, net cost reduces to approximately £56,000-£75,000.
What is the cost per kWp for commercial solar?
Commercial solar costs £600-£1,000 per kWp installed in 2026. Larger systems achieve better economies of scale: 50kW systems cost around £800-£1,000/kWp, while 500kW+ systems can achieve £600-£700/kWp. This includes all equipment, installation, and DNO connection costs.
Financial Questions
What is the payback period for commercial solar panels?
Most commercial solar installations achieve payback in 3-5 years with current electricity prices. Businesses with high daytime consumption often see payback in under 3 years.
How much can a business save with solar panels?
A typical 50kW commercial system saves 12,000-18,000 annually at current electricity prices. Over 25 years, total savings exceed 300,000 after accounting for installation costs.
Are commercial solar panels eligible for 0% VAT?
Yes, commercial solar installations under 1MW qualify for 0% VAT until March 2027. This represents an immediate 20% saving on your installation cost.
Can I claim tax relief on commercial solar panels?
Yes! Commercial solar qualifies for 100% Annual Investment Allowance (AIA), allowing you to deduct the full cost from pre-tax profits in the year of installation. For a £100,000 system, this saves £19,000-£25,000 in corporation tax. This significantly improves ROI.
Can I get finance for commercial solar panels?
Yes, multiple financing options exist including business loans, asset finance, leasing, and Power Purchase Agreements (PPAs). Many businesses achieve positive cash flow from day one with finance.
Are there grants for commercial solar panels?
While most general grants have closed, specific schemes exist for schools (£180m funding pool) and NHS facilities (£100m commitment). The Smart Export Guarantee (SEG) provides ongoing payments for exported electricity. The main financial benefit is the 100% Annual Investment Allowance tax relief.
What is the Smart Export Guarantee (SEG)?
The SEG requires energy suppliers to pay for excess solar electricity exported to the grid. Rates range from 3-15p per kWh depending on your chosen supplier and tariff.
What is a Power Purchase Agreement (PPA)?
A PPA allows you to have solar installed at zero cost. A third party owns the system and sells you the electricity at a fixed rate, typically 10-15% below grid prices. You save immediately with no capital outlay, but returns are lower than ownership. PPAs suit businesses prioritizing zero upfront investment.
Installation Questions
Do I need planning permission for commercial solar panels?
Most commercial solar installations qualify for permitted development and dont need planning permission. Exceptions include listed buildings, conservation areas, and certain roof-facing highways.
What maintenance do commercial solar panels need?
Commercial solar panels require minimal maintenance. Annual inspections and periodic cleaning (if needed) are typically all thats required. Most systems include monitoring to detect any issues.
Can solar panels be installed on listed buildings?
Yes, solar can be installed on listed buildings, but you will need Listed Building Consent from your local planning authority. Approval depends on the visual impact and heritage significance. Options include discrete roof placement, ground-mounted systems in grounds, or heritage-sympathetic panel designs. We have experience with heritage installations and can advise on the best approach for your building.
Process Questions
Do I need planning permission for commercial solar panels?
Most commercial solar installations are permitted development and don't require planning permission. However, listed buildings, conservation areas, or systems exceeding certain sizes may need permission. We handle all necessary applications and DNO notifications as part of our service.
How long does commercial solar installation take?
Installation typically takes 2-5 days for a standard commercial system, though larger installations may take 1-2 weeks. The full process from survey to commissioning usually takes 8-12 weeks, including design, DNO approval, and equipment procurement. We minimize disruption to your operations.
Will installation disrupt my business operations?
Minimal disruption is a priority. Most commercial installations are completed in 2-5 days with work primarily on the roof. We plan around your operational requirements and can work outside business hours if needed. Internal electrical work typically requires brief power shutdowns, which we schedule to minimize impact.
What is the installation process from start to finish?
The process typically takes 8-12 weeks: 1) Free site survey and design (Week 1-2), 2) Quotation and contract (Week 2-3), 3) DNO application for G99 systems (Week 3-9), 4) Equipment procurement (Week 6-10), 5) Installation (Week 10-11), 6) Commissioning and handover (Week 11-12). We manage all steps and keep you informed throughout.
What building regulations apply to commercial solar?
Commercial solar must comply with Part P electrical regulations, building structural requirements, and fire safety standards. Systems over 50kW may require Building Control notification. Listed buildings and conservation areas need planning permission. Our installations are fully compliant, and we handle all regulatory requirements.
Technical Questions
What size solar system does my business need?
System size depends on your electricity consumption and available roof space. A general rule is 1kW of solar per 1,000 kWh annual consumption, though this varies by usage patterns.
How long do commercial solar panels last?
Quality commercial solar panels last 25-30+ years with minimal degradation. Most manufacturers guarantee at least 80% output after 25 years. Inverters typically need replacement after 10-15 years.
What size solar system does my business need?
System size depends on roof space, electricity consumption, and budget. A rule of thumb: 1kWp requires 6-7m² of roof space and generates 850-900 kWh annually. A 100kW system needs 650-700m² and generates 85,000-90,000 kWh/year. We provide free site surveys to determine optimal sizing.
How long do commercial solar panels last?
Commercial solar panels last 25-30+ years with minimal degradation. Most panels come with 25-year performance warranties guaranteeing 80-85% output after 25 years. Inverters typically last 10-15 years and may need replacement. We provide comprehensive warranties and ongoing maintenance.
Do solar panels work on cloudy days?
Yes, solar panels generate electricity in cloudy conditions, though at reduced capacity. UK solar systems generate approximately 70% of potential on overcast days. Annual generation accounts for UK weather patterns, providing reliable year-round performance. Even Scotland's 1,200 sunshine hours delivers excellent ROI.
How much roof space do I need for commercial solar?
As a rough guide, you need approximately 6-8 square metres per kW of solar capacity. A 50kW system requires around 300-400 sqm of unshaded roof space.
What maintenance do commercial solar panels require?
Solar panels require minimal maintenance. We recommend annual inspections and cleaning every 1-2 years to maintain optimal performance. Most systems include remote monitoring to detect issues immediately. Our maintenance packages ensure maximum generation and lifespan.
What happens to solar panels in cloudy weather?
Solar panels still generate electricity in cloudy conditions, typically 10-25% of their peak output. The UK receives sufficient diffuse light for effective solar generation year-round.
What is the difference between G98 and G99 applications?
G98 applies to systems up to 3.68kW per phase (11.04kW total for 3-phase). G99 covers larger systems and requires DNO approval before connection. Most commercial installations are G99. We handle all DNO applications, which typically take 6-8 weeks for approval.
How much energy does a commercial solar panel produce?
In the UK, a commercial solar panel system produces approximately 800-900 kWh per kWp annually. A 100kW system generates around 85,000 kWh per year. Southern England achieves slightly higher output (900 kWh/kWp) than Scotland (750 kWh/kWp) due to increased sunshine hours.
How efficient are commercial solar panels?
Modern commercial solar panels achieve 18-22% efficiency, converting sunlight to electricity. Premium panels reach 22%+. Efficiency has improved significantly in recent years, and today's panels maintain 85%+ output after 25 years. Cooler temperatures actually improve efficiency, benefiting UK installations.
What happens to solar panels at the end of their life?
Solar panels are highly recyclable, with 95% of materials recoverable including glass, aluminium, silicon, and copper. At end of life (typically 25-30 years), panels are processed at specialist recycling facilities. Many manufacturers operate take-back schemes. Some panels continue generating useful power well beyond warranty periods and can be reused in less demanding applications.
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