Commercial £/kWp pricing

Commercial Solar Cost Per kWp UK 2026

Commercial solar pricing in 2026 scales with size — from £950–£1,100/kWp at 50–100 kWp down to £680–£780/kWp at 500+ kWp. Add Annual Investment Allowance tax relief and the effective cost drops 19–25% for taxable companies.

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What you pay

Price ranges

Specification Price range
50 kWp (small business / large farm) £950 – £1,100/kWp · £47k – £55k total
100 kWp (warehouse / school) £900 – £1,000/kWp · £90k – £100k
250 kWp (mid commercial) £820 – £950/kWp · £205k – £237k
500 kWp (large warehouse / factory) £750 – £850/kWp · £375k – £425k
1 MWp (large industrial) £680 – £780/kWp · £680k – £780k
Where the money goes

Cost breakdown

Component % of cost
Panels (commercial-grade Tier-1) 28%
Inverters (3-phase commercial) 12%
Mounting + balance of system 14%
DNO G99 + substation upgrades 5%
Labour + scaffolding 14%
Design + paperwork (PV*SOL, MCS, AIA) 4%
Margin + overheads 23%
What changes the price

Variables

  • Annual Investment Allowance AIA writes off 100% in year one — effective net cost cut 19–25%
  • Roof prep work Asbestos removal, felt replacement, structural reinforcement: £0 to £200k+
  • DNO substation upgrade £0 if local grid OK, up to £40k for substation reinforcement
  • Bifacial vs monofacial panels +8% upfront cost, +5–10% lifetime generation on ground-mount
Return on investment

Payback model

Annual savings and payback by tariff combination. Modelled against typical UK consumption profile.

Setup Annual saving Payback
Daytime self-consumer (90% self-use) £90/kWp 6–8 years (post-AIA)
Mixed (60% self-use, 40% export) £75/kWp 8–10 years
Export-heavy (30% self-use) £60/kWp 11–13 years
Common questions

FAQs

How much can a business save with AIA?
Annual Investment Allowance lets a taxable business write off the full solar capex in year one. A 100 kWp system costing £95k delivers £19k–£23.75k of corporation tax saved (19% or 25% rate). Effective net cost £71k–£76k.
When does commercial solar pay back fastest?
When daytime consumption matches generation. Manufacturing sites with 9–5 operations and high lunchtime peaks see 5–7 year paybacks. Refrigeration-heavy operations even faster.
Do I need three-phase?
Almost certainly. Anything over 16A export (3.68 kW) typically needs three-phase G99 connection. Most commercial sites already have it; if not, upgrade £4k–£15k.
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