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Commercial Solar Panels: Benefits & Costs 2025

Matthew M

Written By

Matthew M

Updated on

29 July 2025
Commercial Solar Panels: Benefits & Costs 2025

As the UK intensifies its push toward net-zero emissions, more businesses are turning to commercial solar panels as a practical, sustainable, and cost-effective energy solution. 

Whether you're managing a hotel, running a bakery, or overseeing operations for a large shopping centre, the long-term advantages of solar energy can help your business reduce overheads, improve brand image, and lock in energy security.

If you're considering solar energy for your commercial premises, you're not alone. According to the Department for Energy Security and Net Zero, the UK solar capacity is expected to quintuple by 2035 as part of the British Energy Security Strategy.

Looking to invest in commercial solar panels? Try the free Quote-Comparison Tool from Eco Answers. This easy-to-use tool connects you with trusted, MCS-certified suppliers offering competitive quotes tailored to your energy needs.

What Are the Benefits of Commercial Solar Panels?

1. Reduced Energy Bills

Installing solar panels can significantly lower your electricity costs. By generating your own renewable electricity, you reduce your dependence on the National Grid. 

Many businesses see a reduction of 40%-70% in their monthly energy bills, depending on system size and usage levels.

2. Long-Term ROI and Energy Security

Solar panel systems typically last 25-30 years. With energy prices volatile in recent years, a solar installation offers predictable costs and a faster payback period, often between 5 and 8 years. Once you've recouped the initial investment, the savings continue for decades.

3. Enhanced Sustainability Credentials

With increasing pressure on companies to operate sustainably, switching to solar helps reduce your carbon footprint. This can be a strong selling point for eco-conscious consumers and corporate partners alike.

4. Eligibility for Grants and Incentives

Businesses in the UK can access government-backed incentives and tax relief schemes to reduce upfront costs (covered below).

5. Energy Resilience

For high-energy-consuming sectors like manufacturing, food processing, or leisure, solar panels combined with battery storage reduce the risk of grid outages affecting operations.

What Types of Commercial Solar Panel Systems Are Available?

Commercial solar energy systems come in several configurations to suit different business needs, property types, and energy consumption patterns. 

Choosing the right system depends on factors such as available space, operating hours, energy goals, and long-term sustainability plans.

Here’s a breakdown of the most common types of commercial solar systems used across the UK:

1. Rooftop Solar PV Systems

Rooftop solar is by far the most popular type of commercial installation in the UK. These systems involve mounting solar panels directly onto the building's roof, either on a flat or pitched surface, using specialist racking systems.

Best suited for:

  • Factories and warehouses with expansive flat roofs
  • Gyms, leisure centres, and shopping centres with consistent daytime energy usage
  • Hotels and call centres operating throughout the day
Benefits
Utilises unused roof space for energy production
Minimal impact on business operations during installation
Often quicker and cheaper to install than ground-mounted systems
Ideal for urban commercial properties with limited land area

Technical note: Modern ballasted mounting systems avoid roof penetration, preserving structural integrity.

2. Ground-Mounted Solar Systems

Ground-mounted arrays are installed directly into the land surrounding a commercial premises. These systems are ideal when rooftop space is insufficient or unsuitable due to shading, orientation, or structural limits.

Best suited for:

  • Rural hotels or leisure spas with surrounding land
  • Theme parks and outdoor attractions
  • Agricultural businesses or plant nurseries
  • Corporate campuses and business parks
Benefits
Can be scaled up easily for high energy demands
Easier to clean and maintain than roof-mounted systems
Adjustable angles allow for optimal sun exposure throughout the year
More flexibility in system layout and future expansion

Planning note: Some ground-mounted systems may require planning permission depending on size and location.

3. Solar Carports and Canopies

Solar carports are overhead structures installed over parking areas. In addition to generating electricity, they provide shade and weather protection for vehicles. These are growing in popularity for businesses that want dual-function systems.

Best suited for:

  • Theme parks, retail parks, and shopping malls with large car parks
  • Office complexes and council buildings
  • Distribution centres and transport hubs
  • Hotels and restaurants offering EV charging stations
Benefits
Makes use of underutilised parking areas
Supports EV charging integration with on-site generation
Demonstrates environmental leadership to customers and stakeholders
Provides additional structural use (shading, rain protection)

Future-proofing bonus: Carports can also be fitted with battery storage or integrated into energy management systems for maximum ROI.

4. Battery Storage Integration

Battery storage is not a type of solar panel system in itself, but a powerful addition that enhances how energy is used and managed. Batteries store excess electricity generated during sunny periods and release it during peak demand or at night.

Best suited for:

  • Businesses with high evening or overnight energy needs (e.g., hotels, restaurants, 24-hour operations)
  • Companies wanting to reduce peak time grid dependence
  • Sites in areas with grid constraints or rising time-of-use tariffs
Benefits
Maximises self-consumption of solar energy
Offers backup power during grid outages or blackouts
Improves system ROI by enabling energy arbitrage (buy low, use high)
Essential for future participation in demand response schemes and smart grid incentives

Practical tip: Many UK businesses combine solar with batteries under a Power Purchase Agreement (PPA) model, removing the need for large upfront investment.

How Much Do Commercial Solar Panels Cost in 2025?

In general the cost of solar panels depends on system size, installation complexity, location, and additional components (like battery storage).

System Size (kW)
Typical Use Case
Est. Cost (ex VAT)
Est. Annual Savings
10 kW
Small businesses (cafes, shops)
£9,000 - £12,000
£1,500 - £2,500
50 kW
Medium-size buildings (gyms, spas)
£40,000 - £50,000
£6,000 - £8,000
100 kW
Hotels, call centres, restaurants
£80,000 - £95,000
£12,000 - £16,000
250 kW+
Malls, warehouses, manufacturing
£200,000+
£25,000 - £40,000+

Note: Prices vary depending on roof access, inverter quality, and mounting system used. Always consult a certified installer for a bespoke quote.

What Size System Does Your Business Need?

When planning a commercial solar panel system, one of the most important factors is determining the correct system size to match your business’s electricity consumption. 

Oversizing the system can lead to unnecessary costs, while undersizing may limit your energy savings and return on investment.

Key Factors That Influence System Size:

  • Electricity usage patterns: Businesses that operate extended hours or have energy-intensive equipment (like bakeries or call centres) will require a larger system.
  • Roof or land space availability: Your system size may be constrained by how much usable roof or ground area you have. Flat rooftops typically allow for more flexible array layouts.
  • Operational hours: Businesses running during daylight hours can consume more solar energy as it’s generated, which increases the value of self-consumption and shortens the payback period.
  • Energy goals: Some businesses aim to offset 100% of their electricity usage, while others may target 50–70% offset and still achieve significant savings.

Below is a general guide based on typical energy usage by business type:

Business Type
Typical Monthly Use (kWh)
Suggested System Size (kW)
Bakery
3,000
20-30
Gym or Spa
8,000
50-80
Hotel
15,000
100-150
Call Centre
25,000
150-250
Shopping Centre
50,000+
300-500+

Tip: A site survey is essential to determine the optimal system size.

Why System Sizing Matters

Getting the size right ensures maximum cost efficiency and faster return on investment. Over-generating without a storage solution or favourable export tariff can lead to wasted energy, while an undersized system might not deliver sufficient savings to justify the cost.

For example:

  • A bakery that only operates during the day may achieve up to 90% self-consumption, making a smaller system very effective.
  • A hotel running 24/7 may benefit from larger arrays paired with battery storage, to ensure energy is available at night and during peak times.
  • Shopping centres and call centres with consistent high demand may also benefit from exporting excess energy under the Smart Export Guarantee (SEG), improving long-term returns.

Which Businesses Can Benefit Most From Commercial Solar Panels?

The businesses that stand to gain the most are those with consistent daytime electricity consumption, ample roof or land space, and long operational hours, especially in sectors where energy is a significant overhead.

Adopting solar energy in these environments doesn’t just offer savings, it can significantly enhance sustainability credentials, improve energy independence, and future-proof against rising utility prices.

Ideal Candidates for Commercial Solar Integration:

  • Hotels
    With 24/7 occupancy, hotels require constant energy for lighting, heating, air conditioning, laundry operations, and kitchen services. Rooftop systems or ground-mounted arrays in car parks or gardens can significantly reduce operational costs.
  • Restaurants & Bakeries
    These premises often operate from early morning into late evening, consuming electricity for ovens, refrigeration units, dishwashers, and HVAC systems. Solar can offset a large portion of this consistent load, particularly when battery storage is used to manage after-hours demand.
  • Leisure Centres & Gyms
    Energy-intensive by design, these businesses rely on ventilation, lighting, heated pools, and exercise equipment. Their large, flat roofs make them ideal for solar PV installation, and the high energy usage ensures quick payback periods.
  • Spas
    Spas require constant heating for pools, saunas, jacuzzis, and treatment rooms, often in tranquil rural locations with fewer grid constraints. Solar installations help maintain low-carbon operations while meeting high energy demands.
  • Theme Parks
    Running extensive lighting systems, ride mechanics, catering outlets, and ticketing infrastructure, theme parks are high-consumption environments with significant roof and land space, ideal for both rooftop and ground-mounted solar arrays.
  • Call Centres
    Often operating long shifts or 24/7, call centres consume large amounts of energy for computer networks, telecom infrastructure, and lighting. Even small improvements in energy efficiency can result in major long-term cost reductions at scale.
  • Retail Malls
    With HVAC systems, digital signage, escalators, and extended opening hours, shopping centres are ideal for solar generation. Their expansive rooftops allow for high-capacity systems capable of offsetting major portions of their electricity consumption.

Additional Sectors to Consider:

  • Cold storage facilities: Constant refrigeration means solar can significantly reduce ongoing utility expenses.
  • Warehouses and logistics hubs: Typically have large, flat roofs with high potential for solar array deployment.
  • Educational campuses: With predictable daytime demand and environmental commitments, schools and universities often benefit from solar initiatives.

Bottom Line:

If your business operates primarily during daylight hours, consumes large volumes of electricity, or has high energy overheads, commercial solar panels can be a strategic investment, not just an environmental one. 

The result: reduced energy bills, enhanced green credentials, and improved resilience against future energy market fluctuations.

Are There Grants or Incentives for Commercial Solar Panels in the UK?

Yes. The UK Government and Ofgem support various incentives to help offset the costs:

1. Smart Export Guarantee (SEG)

Under SEG, businesses are paid for surplus energy exported to the grid. Licensed energy suppliers offer tariffs to eligible systems.

2. Enhanced Capital Allowance (ECA)

Under the UK Government's Capital Allowances scheme, businesses can write off 100% of the cost of solar equipment against their taxable profits in the first year.

3. Business Rates Exemption

From April 2022, eligible solar installations on non-domestic properties are exempt from business rates for 12 years.

4. Energy Efficiency Grants

Local councils and LEPs (Local Enterprise Partnerships) occasionally offer funding for energy-efficiency upgrades. Check with your local authority.

How Long Does it Take to Install Commercial Solar Panels?

The time it takes to install a commercial solar PV system depends on several factors, including system size, site complexity, planning requirements, and whether any grid upgrades are needed. 

However, most commercial solar installations can be completed within 2 to 8 weeks from initial consultation to final commissioning.

Here's a general timeline breakdown:

Stage
Est. Duration
Details
Site Survey & Assessment
1–2 days
Engineers assess your roof/land, electrical setup, and shading factors.
System Design & Quotation
3–7 days
Custom system proposal including panel layout, specs, and costings.
Planning & DNO Approvals
2–6 weeks (if required)
Approval from the Distribution Network Operator (DNO) for systems over 3.68kWp. Listed buildings or conservation areas may need planning consent.
Installation
2–10 days (on-site work)
Depends on system size and weather. Large or complex sites may take longer.
Testing & Commissioning
1–2 days
Final checks, grid connection, system handover, and documentation.

Factors That Can Affect the Timeline:

  • System Size: Larger systems (e.g. 100 kWp+) naturally require more time to install and test.
  • Roof Condition: Roof repairs or reinforcements may be needed before installation.
  • Grid Constraints: Some areas may require infrastructure upgrades for larger systems.
  • Permit Requirements: Listed buildings or installations in conservation areas can add time due to required permissions.
  • Weather: Adverse weather can delay roofing work, especially for pitched systems.

Can Businesses Operate During Installation?

Yes, in most cases, your business can remain fully operational during the install. The process is non-intrusive, and experienced installers will coordinate around working hours to minimise disruption.

Do You Need Planning Permission for Commercial Solar Panels?

In most cases, planning permission is not required for rooftop solar installations as they fall under permitted development rights. However, permission may be necessary if:

  • The building is listed or in a conservation area
  • The system significantly alters the building’s appearance
  • Ground-mounted arrays exceed certain size limits

Always check with your local planning authority before proceeding.

What Is the ROI on Commercial Solar Panels?

Return on investment varies based on usage, installation costs, and energy prices, but most systems break even within 5-8 years. Considering a lifespan of 25+ years, ROI can reach 300-400% over the system’s life.

Businesses can benefit from:

  • Energy savings (up to £40,000+/year for large systems)
  • Export income (via SEG)
  • Tax relief and exemptions

FAQs

1. Can I use commercial solar panels to power EV charging stations?

Yes, solar panels can support EV charging infrastructure. Pairing solar with battery storage ensures consistent availability, especially during peak demand.

2. Do commercial solar panels work in winter?

Yes. While output is lower due to shorter days and lower irradiance, commercial solar panels still generate electricity year-round.

3. How do I ensure my solar system stays efficient over time?

Regular maintenance, panel cleaning, and performance monitoring are key. Many installers offer maintenance packages.

4. What certifications should I look for in an installer?

Look for MCS (Microgeneration Certification Scheme) and RECC (Renewable Energy Consumer Code) accreditations.

5. Can solar panels be installed on leased commercial properties?

Yes, but you’ll need landlord consent and may need to negotiate shared benefits or lease adjustments.

Final Thoughts

Investing in commercial solar panels is not only a step toward a greener future but a smart business decision. With rising energy costs, generous UK government incentives, and rapid payback potential, now is the time to take action.

If you're ready to explore solar energy for your business, try Eco Answers' free Quote-Comparison Tool to get tailored, no-obligation quotes from trusted suppliers. It's never been easier to make the switch to clean, cost-effective power.

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