Solar Panels for Businesses
UK businesses typically pay 25–40p/kWh for electricity — double what domestic customers pay on peak tariffs. Solar pays back 5–8 years for most commercial properties, and Annual Investment Allowance (AIA) lets you write off 100% of the cost in year one, cutting the effective net cost by 19–25%.
The sector advantage
- Annual Investment Allowance writes off 100% of solar capex in year one — effective cost cut of 19–25%
- Business electricity rates of 25–40p/kWh mean solar generation saves more per kWh than domestic
- Daytime commercial electricity loads (lighting, AC, IT, machinery) match solar generation perfectly
- EPC improvement qualifies premises for better Commercial EPC ratings (DEC for public buildings)
- Sustainability reporting — solar supports SECR (Streamlined Energy and Carbon Reporting) and Net Zero targets
System sizes & payback
| Customer | Size | Annual saving | Payback |
|---|---|---|---|
| Small office (10 staff) | 10 kWp | £5,200/year | 6.5 years (5.0 years post-AIA) |
| Retail unit (500 m²) | 25 kWp | £11,500/year | 5.5 years (4.0 years post-AIA) |
| Light industrial / workshop | 50 kWp | £22,000/year | 5.0 years (3.7 years post-AIA) |
| Office campus / multi-unit | 100 kWp | £44,000/year | 4.5 years (3.3 years post-AIA) |
What's different in this sector
Annual Investment Allowance (AIA)
Businesses can write off 100% of solar panel installation cost against trading profits in the year of purchase (AIA). A 50 kWp system costing £48,000 saves £9,120–£12,000 in corporation tax in year one. Effective net cost: £36,000–£38,880.
SECR and Net Zero reporting
Businesses with 250+ employees, £36m+ turnover, or £18m+ balance sheet are required to report under SECR. On-site solar reduces Scope 2 emissions (purchased electricity), directly improving the SECR report and ESG narrative.
G99 and DNO connection
Business solar systems over 3.68 kW (16A) need G99 DNO approval. Most commercial sites are three-phase, simplifying this. We manage the full application, typically 4–8 weeks.
Roof ownership
If your business owns the building, straightforward. If you're a tenant, landlord consent is needed. Commercial leases are increasingly including provisions for tenant solar — we've drafted template licence agreements used by several M6 corridor business parks.
Real projects, real numbers
30 kWp rooftop + 27 kWh battery
Salford tech office (80 staff)
£14,800/year saving, AIA tax relief £7,200 year one, SECR Scope 2 reduced by 62%
15 kWp per store (45 kWp total)
Manchester retail group (3 stores)
£27,000/year combined saving, sustainability marketing cited in press releases
80 kWp + 50 kWh battery + 6 EV chargers
Wigan engineering firm
£42,000/year saving, AIA £20k year-one relief, fleet EV charging free from solar May–Sep
Common questions
How much does business solar cost?
What's Annual Investment Allowance and how does it work?
How long does commercial solar installation take?
Can I add battery storage to commercial solar?
Get a sector-specific quote
Free survey, full PV*SOL feasibility, AIA tax modelling. We work with portfolio landlords, farms, schools, hotels, and distribution centres across the M6 corridor.