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.
Related guides
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