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Commercial solar panels aren't a small investment and most systems cost tens of thousands of pounds. But for most UK businesses, the system pays back in under six years and effectively generates free electricity for twenty years.
This guide breaks down what commercial solar costs, what you'll save, and how long before the numbers work in your favour.
How much do commercial solar panels cost in the UK in 2026
The most useful way to think about commercial solar cost is cost per kilowatt-peak (kWp). Larger systems cost less per kWp, because the fixed costs (survey, scaffolding, electrical connection) are spread across more panels.
Here's what to expect for installed costs in 2026, including panels, inverter, mounting, scaffolding, DNO application, and MCS certification:
| System size: | Typical use: | Installed cost: | Cost per kWp: |
|---|---|---|---|
| 10kW | Small office, café, clinic | £13,000 – £15,000 | £1,300 – £1,500 |
| 20kW | Medium office, retail unit | £16,000 – £30,000 | £800 – £1,500 |
| 30kW | Small warehouse, school | £22,000 – £38,000 | £730 – £1,270 |
| 50kW | Medium warehouse, factory | £33,000 – £60,000 | £660 – £1,200 |
| 100kW+ | Large industrial, logistics | £70,000 – £110,000+ | £700 – £1,100 |
Costs correct as of April 2026. Final price depends on roof type, access requirements, and system specification. OVO's free commercial survey provides a fixed quote for your specific property.
Adding a battery increases upfront cost. A 30 to 50kWh commercial battery system typically adds £15,000 to £40,000. For most daytime operating businesses, a battery is optional. You'll use most of what you generate during working hours anyway. But if your premises runs overnight or you want to draw on stored solar after hours, a battery means you're not buying that electricity from the grid.
What’s included in a commercial solar installation quote?
A proper commercial solar quote should cover everything from survey to switch-on. Here's what OVO's commercial installation includes as standard:
• Site survey and bespoke system design
• High-efficiency solar panels (MCS-certified)
• Commercial inverter or multiple inverters for larger systems
• Mounting hardware — ballasted framing for flat roofs, rail systems for pitched roofs
• Scaffolding and access equipment
• Electrical connection and infrastructure upgrades if needed
• G99 DNO application and grid connection approval
• Post-installation handover, monitoring setup, and ongoing support
Watch out for quotes that separate these items or add them as extras after the headline figure. OVO's quote is fixed — what we quote you is what you pay.
How much could your business save?
For businesses that operate during the day, solar panels work particularly well. The hours when panels generate the most electricity are roughly 9am to 5pm, which lines up with when your business is using the most power. Most of what your system generates gets used on-site straight away, at full value.
Here's what that looks like in practice:
| Building type: | System size: | Annual generation: | Annual saving: | Payback period: |
|---|---|---|---|---|
| Small café (open 8am–5pm) | 10kW | 8,500 kWh | £1,700 – £2,300 | 5–7 years |
| Office (50 staff) | 20kW | 17,000 kWh | £3,400 – £4,600 | 5–7 years |
| Small warehouse | 30kW | 25,500 kWh | £5,100 – £6,400 | 4–6 years |
| Medium factory | 50kW | 42,500 kWh | £8,500 – £10,600 | 4–5 years |
| Distribution centre | 100kW | 85,000 kWh | £17,000 – £21,000 | 3–4 years |
Savings calculated at 20–25p per kWh avoided grid cost. Annual generation based on 850 kWh per kWp in a typical UK location. Individual results will vary.
Find out what solar could save your business. Book OVO's free commercial solar survey, no commitment needed.
What’s the payback and ROI?
Most UK businesses recover their commercial solar investment in 4–6 years. After that, the electricity you generate is effectively free for the remaining 20+ years of the system's life.
Payback is fastest for businesses with high, consistent daytime energy use — manufacturing, refrigeration, retail, hospitality. These businesses consume almost everything they generate, maximising the saving per unit.
Here's a worked example for a medium-sized business:
WORKED EXAMPLE — 30KW SYSTEM ON A SMALL WAREHOUSE
System cost: £30,000
Annual generation: 25,500 kWh
Avoided grid electricity (at 24p/kWh): £6,120/year
AIA tax relief (at 25% corporation tax): £7,500 in year one
Effective year-one cost after tax relief: £22,500
Payback period: 3.7 years (after tax relief)
That 25-year return on a £30,000 investment? Around £120,000 in avoided electricity costs — and that's before accounting for changes in electricity prices.
Tax benefits and financial incentives for businesses
Businesses get significant tax advantages on solar investment. Here's what's available:
| Incentive: | What it is: | Typical benefit: |
|---|---|---|
| Annual Investment Allowance (AIA) | 100% first-year tax deduction on the full system cost | 25% of system cost back in year one at current CT (corporation tax) rate |
| 0% VAT on equipment | Solar panel hardware qualifies for zero VAT in most commercial cases | 20% saving on panel and equipment costs |
| Local authority schemes | Some councils offer grants or interest-free loans for SMEs | Varies — up to £100,000 in some areas |
Solar panels are classified as special rate expenditure by HMRC, which means Full Expensing (the separate 100% relief introduced in April 2023) does not apply to them. The AIA does apply and achieves the same 100% first-year deduction for most businesses, up to the £1 million annual cap.
Further source: https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086
The AIA is the most valuable for most businesses. A £40,000 system generates a £10,000 tax saving in year one at 25% corporation tax. That effectively reduces your real upfront cost before you've generated a single unit of electricity.
Tax treatment depends on your specific circumstances. Always confirm your position with an accountant before finalising your solar investment decision.
Is commercial solar right for your business?
Solar works best for businesses that tick most of these boxes:
• High electricity bills — generally above £15,000 a year
• Substantial roof space — at least 60–70m² for a meaningful system
• Daytime operations — the more electricity you use between 9am and 5pm, the faster the payback
• Property ownership or a long lease — at least 10 years remaining to recover the investment
• South, southeast, or southwest-facing roof — though east/west can still work
OVO's free commercial survey takes a detailed look at your roof, your energy use and your costs and savings and gives you a detailed quote either way.
Frequently asked questions
How long does commercial solar last?
Most commercial panels carry a 25–30 year performance warranty and will generate electricity well beyond that. Inverters typically need replacing after 10–15 years — they can cost between £2,000–£10,000 depending on system size.
Can I get commercial solar with no upfront cost?
OVO offers 0% interest-free finance for commercial solar, allowing businesses to spread the cost over 3 years. This can make the switch cash-flow neutral from day one, as your monthly energy savings often match or exceed your finance payments.
Does commercial solar need planning permission?
Most commercial rooftop solar falls under permitted development rights and doesn't need planning permission. Listed buildings and conservation areas are exceptions. OVO's survey covers this as standard.
What happens to excess electricity my business doesn't use?
Any electricity you don't use on-site is exported to the grid and paid for under the Smart Export Guarantee (SEG). You'll need an MCS-certified installation and a smart meter to qualify.
Do commercial solar panels work in the UK climate?
Yes, panels generate from daylight rather than direct sunshine, so they produce power even on overcast days. OVO's survey uses your specific location and roof orientation to give you an accurate generation forecast.
Speak to an OVO expert and get your free consultation today