With the UK government continuing to encourage businesses toward renewable energy, more companies are investing in commercial-scale solar PV to cut running costs and carbon footprint. But how much investment does a business solar panel installation actually need? This guide breaks down the costs involved.
Factors That Affect Commercial Solar Panels Cost
Solar System Size - as with most equipment, a bigger system costs more upfront, but the cost per watt usually falls as the system grows.
Solar Panel Type - solar PV systems come in a few main types:
Monocrystalline
The most efficient panels on the market, reflected in a higher price.
Polycrystalline
Somewhat less efficient than monocrystalline, and generally the most cost-effective choice for commercial roofs.
Thin-film
The least efficient option, but the cheapest and most flexible to fit.
Roof Type and Condition - the available roof space and its condition can affect installation cost:
- A flat roof is generally easier and cheaper to fit, with a simple mounting system.
- A pitched roof may need specialist mounting equipment for the tilt, adding labour and cost.
- Any roof damage will need reinforcing before it can safely carry the weight of an array.
Location - labour and installation costs vary by region, and some local schemes and grid connection costs can differ by area too, so your assessment reflects your own postcode.
Average Commercial Solar Panel Systems Costs
Every commercial system is bespoke, tailored to your building and your electricity demand. If your business has high electricity use and wants to minimise or largely eliminate its bill, you will need a larger system, which raises the total cost. We do not publish a single average £/kWp figure, because it varies too much by roof, region and system size to be a fair guide - instead, here are our own current package examples so you can see real system sizes and prices side by side.
| System size | Ideal for | Typical annual saving | Price from |
|---|---|---|---|
| 50kW | office buildings | £7,306 | £45,000 |
| 100kW | warehouse buildings | £16,042 | £96,300 |
| 240kW | manufacturing plants | £36,531 | £212,500 |
| 500kW | distribution centres | £73,063 | £418,600 |
Savings are illustrative, based on a 24p/kWh tariff, close to the Q1 2026 average. Your assessment uses your actual rates.
Installation Costs - labour makes up part of the overall figure, alongside the panels, inverters, mounting equipment and wiring, all rolled into one bespoke quote for your building.
Ongoing Costs - ongoing costs cover maintenance, repairs and insurance. Maintenance is generally low, mainly annual cleaning, inspection and occasional inverter checks. Panels typically carry a warranty of around 25 years, while an inverter typically lasts 10 to 15 years before it needs replacing. See our guide to commercial solar panel maintenance.
Financing Options for Commercial Solar Panels
The sums involved in a commercial solar installation can look daunting at first, but there are several ways to fund it:
- Direct Purchase - buying the system outright with cash. You own it from day one and keep every pound of the saving, and can usually claim capital allowances against the cost.
- Hire Purchase - a funder pays for the system and you repay over a fixed term, typically 5 to 10 years, taking ownership at the end. Repayments are compared against your expected bill savings before you commit.
- Power Purchase Agreement (PPA) - a funder installs, owns, operates and maintains the system on your property with no capital outlay from you, and you buy the electricity it generates at an agreed rate. See our full PPA guide.
- Business Loans - a business can secure a loan and repay it in instalments structured around expected energy savings. Interest may be tax-deductible; check with your accountant.
Calculating Your Potential Savings
Potential savings vary between buildings because energy generation and usage differ. An office, for example, typically has lower demand than a factory. To size your system correctly, you need to look at both your outgoing energy use and what you want solar to cover.
Electricity Consumption Audit - an audit helps analyse usage patterns, including peak demand times, daily consumption and seasonal variation, through monitoring systems or an energy consultant. Knowing your usage lets you size the system for maximum efficiency.
Energy Production Estimates - modern solar PV is less dependent on direct sunlight than older technology, still generating on cloudier days at a reduced rate. As a fair UK blended figure, a system generates around 850kWh per installed kWp a year, though this varies by region, roughly 750-800kWh/kWp in Scotland and 1,000kWh/kWp or more on the south coast.
Example
Body Shop Headquarters: The Body Shop installed a 154kW solar PV system on its headquarters in Littlehampton, West Sussex. The system was expected to generate 130,000kWh of electricity a year, covering around 15% of the building's energy needs.
Conclusion – Are Commercial Solar Panels Worth The Cost To Businesses?
Businesses succeed by cutting costs and protecting margins, and energy generation is one of the most overlooked costs to tackle. A commercial solar PV system reduces your energy bill and your carbon footprint at the same time, which is why businesses across the UK continue to invest in it.
Get your free solar assessment and we will size a system to your roof and bills, and set out the real cost and saving of buying outright, hire purchase and a PPA side by side.