SME guide
Solar Panels for Business: Are They Worth It for Your Premises?
Last updated 15 October 2026 · Figures indicative
Short answer: For most UK businesses that use electricity during the day and control a suitable roof for 10+ years, solar panels are worth it: they typically supply 20–50% of annual demand and pay back in 3–7 years if bought, or save from day one under a PPA. Small or short-lease sites may suit buying a small system or a lease instead.
Quick suitability check
- Do you use most of your electricity between about 8am and 6pm?
- Do you own the building, or have 10+ years left on the lease?
- Is the roof in good condition, unshaded and not due for replacement?
- Do you spend more than a few thousand pounds a year on electricity?
- Will the business be at this site for the payback period?
Four or five "yes" answers usually means solar is worth a closer look.
Savings by business size
| Business | System | Annual use | Solar used on site | Year-1 saving |
|---|---|---|---|---|
| Small office | 15 kWp | 25,000 kWh | 9,975 kWh | £2,594 |
| Shop | 25 kWp | 40,000 kWh | 17,813 kWh | £4,631 |
| Workshop | 50 kWp | 80,000 kWh | 35,625 kWh | £9,263 |
| Warehouse | 200 kWp | 350,000 kWh | 152,000 kWh | £39,520 |
Illustrative — your site will differ. Grid rate within 24–28p/kWh (August 2026).
Buy, lease or PPA for an SME
- Buy: best saving if you have the cash; tax reliefs help.
- Lease or asset finance: spread the cost; payments often below the savings.
- PPA: no upfront cost, but funders usually want larger sites.
Bigger sites should read the commercial solar panels hub.
If you rent your premises
Get the landlord's written consent first, and check the lease length covers the payback or agreement term. Agree what happens to the panels when the lease ends — removal, sale to the landlord, or transfer to the next tenant.
Tax reliefs when buying
Purchased solar PV is special-rate plant. You may be able to claim the Annual Investment Allowance (up to £1,000,000), and companies may alternatively claim a 50% first-year allowance. Ask your accountant — this is not tax advice.
Business rates exemption
Exempt to 31 March 2035 (England) for on-site rooftop solar and storage. Wales, Scotland and Northern Ireland have their own rules, so check locally.
Steps to get quotes
- Download 12 months of half-hourly data or collect bills.
- Estimate your savings with the solar calculator.
- Get two or three quotes from MCS-certified installers.
- Compare £/kWp, forecast output and warranties side by side.
Related reading: our complete guide to solar power purchase agreements, the commercial solar panels hub, solar with no upfront cost, solar panels for offices, solar for retail premises and estimate your savings.
Business solar panel FAQs
What size system does a small business need?
Size it to your daytime use, not your roof. A small office or shop using 20,000–40,000 kWh a year often suits 10–30kWp; a busy workshop 30–80kWp. Twelve months of half-hourly data shows how much you use while the sun is up.
Can tenants install solar?
Yes, with the landlord's written consent (usually a licence for alterations) and enough lease remaining for the payback or agreement term. Some landlords install solar themselves and sell the electricity to tenants.
Is there a government grant for business solar in 2026?
There is no national grant for business solar panels in 2026. Some local authorities, combined authorities and devolved schemes offer grants or low-cost loans from time to time, so check your council and growth hub. Tax reliefs on purchase are the main national support.
Do solar panels need cleaning?
Occasionally. UK rain keeps most pitched roofs reasonably clean, but low-pitch and flat roofs, or sites near dust, farms or the coast, benefit from cleaning once or twice a year to avoid losing output.
Will solar power my business at night?
No — panels generate only in daylight. At night and on dull winter days you use grid electricity as normal. A battery can store surplus daytime solar for the early evening.
Sources
- GOV.UK — Greenhouse gas reporting: conversion factors (DESNZ)
- legislation.gov.uk — The Non-Domestic Rating (Plant and Machinery) (Amendment) (England) Regulations 2022, SI 2022/405
- HMRC — Capital allowances: Annual Investment Allowance and first-year allowances
- Energy Networks Association — G98 and G99 connection requirements
- European Commission JRC — PVGIS photovoltaic yield tool
Price ranges for larger systems, running costs, batteries and PPA rates are indicative market ranges from UK installer, funder and market sources; no official series exists above 50kWp.
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