Costs · 2026

Commercial Solar Panel Costs in the UK (2026)

Last updated 15 October 2026 · Figures indicative

Short answer: In 2026 a UK commercial solar system typically costs £850–£1,050 per kWp at 100kWp, falling to £700–£850 per kWp above 1MWp. A 100kWp system is therefore roughly £85,000–£105,000 installed, with a typical payback of 3–7 years. Under a PPA the upfront cost is £0 and you pay per kWh instead.

Commercial solar cost by system size

Indicative UK installed costs, October 2026 (excludes VAT, batteries and major roof or grid works)
System	£/kWp	Total installed	Generation/yr	Roof area
30 kWp	£1,100–£1,300	£33,000–£39,000	25,500–31,500 kWh	≈167 m²
50 kWp	£1,100–£1,300	£55,000–£65,000	42,500–52,500 kWh	≈278 m²
100 kWp	£850–£1,050	£85,000–£105,000	85,000–105,000 kWh	≈556 m²
250 kWp	£780–£950	£195,000–£237,500	212,500–262,500 kWh	≈1,389 m²
500 kWp	£780–£950	£390,000–£475,000	425,000–525,000 kWh	≈2,778 m²
1000 kWp	£700–£850	£700,000–£850,000	850,000–1,050,000 kWh	≈5,556 m²

10–50kWp non-domestic: DESNZ Solar PV cost data (MCS installations) shows mean costs of about £1,170–£1,300/kWp. Indicative installed cost ~100kWp; DESNZ publishes no official series above 50kW, so this is a market range. Generation at 850–1,050 kWh/kWp, typical for real commercial roofs (PVGIS gives 850–1,160 for ideal south-facing arrays).

What's included — and what's not

A typical quote includes design, panels, inverters, mounting, cabling, scaffolding, installation, commissioning, the DNO application and MCS certification. It often excludes roof repairs or replacement, asbestos work, grid reinforcement charges, batteries, monitoring subscriptions beyond year one and VAT.

What drives the cost

System size: fixed costs spread over more panels, so £/kWp falls as size rises.
Roof type: metal profile roofs are quickest; flat roofs need ballasted frames; fragile or asbestos roofs add cost.
Access and scaffolding: height, edge protection and working around live operations.
Grid connection: DNO reinforcement can add thousands; export limitation (G100) can avoid it.
Inverters and electrical works: distance to the main board and switchgear upgrades.
Batteries: a significant extra cost, only justified by your load profile.

Payback and ROI: worked example

A 100kWp system bought at £950/kWp (£95,000), generating 950 kWh/kWp with 80% used on site at 26p/kWh, rising 2% a year. O&M £12/kWp/yr and an £8,000 inverter replacement in year 12. Export income excluded.

Illustrative — your site will differ
Measure	Result
Year-1 net saving	£18,560
Simple payback	5 years
20-year net benefit	£329,474
NPV at 8%	£106,036

Running costs if you own the system

O&M, cleaning and monitoring: about £8–£15/kWp/yr (Typical UK commercial O&M, monitoring and inspection contracts; installer and O&M-provider published ranges (£7–£15/kWp/yr typical; wider scopes up to ~£25).)
Inverter replacement: once, around year 10–15.
Insurance: add to your buildings policy or insure separately.
Module degradation: 0.4–0.5% a year.

Tax treatment when buying

Purchased solar PV is special-rate plant. Businesses may claim the Annual Investment Allowance (up to £1,000,000) and companies may alternatively claim a 50% first-year allowance. Exempt to 31 March 2035 (England) for on-site rooftop solar. Ask your accountant how these apply to you — this is not tax advice.

PPA cost per kWh vs buying

On the same 100kWp example, a PPA at 12p/kWh needs no capital and delivers a 20-year saving of about £282,484 (NPV £129,525), compared with £329,474 if bought. See the full solar PPA vs buying comparison and current solar PPA rates.

How to get an accurate quote

Gather 12 months of half-hourly electricity data.
Know your roof's age, type and any asbestos.
Ask for £/kWp, forecast generation and what's excluded, in writing.
Compare at least three MCS-certified installers, or PPA offers on the same basis.

Or start with the solar PPA calculator.

Compare buying with the alternatives: our complete guide to solar power purchase agreements, current solar PPA rates per kWh, the 20-year PPA vs buying comparison, ways to finance a commercial system, commercial battery storage costs and the solar PPA savings calculator.

Commercial solar cost FAQs

How much is a 50kW commercial solar system?

A 50kWp commercial system in the UK typically costs around £55,000–£65,000 installed in 2026, depending on roof type, access and electrical works. It needs roughly 280m² of usable roof and generates about 45,000–50,000 kWh a year. Smaller systems cost more per kWp because fixed costs are spread over fewer panels.

What's the payback on commercial solar?

If bought outright, UK commercial solar typically pays back in 3–7 years. The biggest factor is how much of the generation you use on site at your grid rate; sites with high daytime demand and higher tariffs pay back fastest. Tax reliefs on purchase can shorten payback further.

Are batteries worth the extra cost?

Sometimes. A battery lets you store surplus solar for later or shift grid use away from peak times, which helps sites with evening demand or high export. It adds significant cost, so it usually makes sense only when modelling against your half-hourly data shows the extra self-consumption pays for it.

What maintenance costs should we budget?

If you own the system, budget roughly £8–£15 per kWp per year for operation and maintenance, monitoring and insurance, plus an inverter replacement at around year 10–15. Under a PPA, the provider covers these costs.

Sources

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.

Want solar without the capital cost?

Describe your site to see whether a PPA could suit you — no upfront installation cost, you pay for the electricity generated.

Get your eligibility guidance