Sectors · Landlords & commercial property
Solar Panels and PPAs for Landlords and Commercial Property
Last updated 15 October 2026 · Figures indicative
Short answer: Commercial landlords can use solar to earn roof income, sell electricity to tenants, or improve EPC ratings ahead of MEES requirements. The main models are rent-a-roof (a provider pays you to use the roof), a landlord PPA that resells power to tenants, or helping a tenant sign its own PPA.
Why landlords & commercial property suits solar
- Solar can raise EPC ratings, supporting MEES compliance for let property.
- Rent-a-roof or power resale creates a new income stream.
- Tenants increasingly ask for lower-carbon buildings.
- Green lease clauses can share savings fairly.
Typical system size and savings
A multi-let industrial estate with a 600kWp system, using 1,200,000 kWh a year. Generation at 900 kWh/kWp, 75% used on site, grid at 26p/kWh and a PPA at 12p/kWh.
| Measure | Result |
|---|---|
| Annual generation | 540,000 kWh |
| Solar used on site | 405,000 kWh (34% of demand) |
| Year-1 PPA saving vs grid | £56,700 |
| Carbon avoided | ≈108 tCO₂e/yr |
Grid rate within 24–28p/kWh (August 2026); PPA rate within 10–14p/kWh; carbon factor 0.2 kgCO₂e/kWh. Exported power is normally the provider's.
Roof and site considerations
- Lease terms must allow roof access and installation.
- Each tenant's supply and metering arrangements need review.
- Roof condition and remaining life should be checked before committing for 20+ years.
- Who repairs the roof under the panels must be agreed.
Funding options for landlords & commercial property
Landlords can lease the roof to a funder, sign a PPA and resell power, or fund the system and charge tenants. The right model depends on lease structure, tenant credit and whether the landlord wants income or EPC improvement. Compare routes in our commercial solar finance guide and the PPA vs buying comparison, or read our complete guide to solar PPAs.
Sector-specific risks
- Tenant credit: power resale depends on tenants paying.
- Supply rules: reselling electricity has licensing and pricing rules to follow.
- Void periods: empty units reduce demand for the power.
Related sectors
Solar for landlords & commercial property: FAQs
What is rent-a-roof for commercial solar?
Rent-a-roof is where a solar provider leases your roof, installs and owns the system, and pays you rent or a share of revenue. The provider sells the power to tenants or exports it.
Can a landlord sell solar power to tenants?
Yes, often through sub-metering under the landlord's supply arrangements, subject to electricity resale rules and lease terms. Take legal advice on the structure.
Does solar help with MEES?
It can. On-site renewable generation can improve a building's EPC rating, which matters because MEES restricts letting commercial property below minimum EPC levels.
What is a green lease clause?
A green lease clause sets out how landlord and tenant share energy data, costs and savings — for example who pays for solar, who benefits from the power and how roof access works.
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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