How much do commercial solar panels cost in the UK?

Commercial solar cost depends on installed capacity, roof work, electrical design and the network connection. DESNZ publishes cost data by capacity and distinguishes total installed capacity from export capacity [S1]. For illustration only, a 50 kW array at an assumed £800–£1,200 per kW gives £40,000–£60,000 before excluded work. Replace those assumptions with site quotes. Checked October 2026.

Last checked 16 October 2026

How much do commercial solar panels cost to install?

Compare a complete installation scope, not the price of panels alone. DESNZ publishes solar photovoltaic (PV) installation cost data by capacity and explains the difference between total installed capacity and declared net capacity [S1]. PV means equipment that turns sunlight into electricity.

Those statistics are a reference dataset, not your roof quotation. We have not extracted a verified current price for your commercial system size, so this guide does not present an official nationwide installed price range.

For the worked example below, assume 50 kW of panel capacity at £800–£1,200 per kW: 50 × £800–£1,200 = £40,000–£60,000. Both price inputs are assumptions. They exclude roof replacement, unusual structural work and network upgrades. A quotation may fall outside that range.

Get the omissions priced before comparing headline totals. If your roof needs replacement during the ownership period, ask for removal and refitting costs as a separate scenario.

What does commercial solar cost per kW mean?

A kilowatt (kW) measures power. A kilowatt hour (kWh) measures energy generated or consumed over time. Panel peak power is often written kWp: kilowatts peak under specified test conditions. It is not a promise of continuous output or annual generation.

For the assumed 50 kWp system, £40,000 ÷ 50 = £800 per kWp, while £60,000 ÷ 50 = £1,200 per kWp. Compare that figure only against offers with equivalent scope. DESNZ explains why the chosen capacity measure changes the apparent cost per kW [S1].

To estimate generation cost per kWh, divide lifetime project costs by lifetime delivered generation. Include maintenance, replacement and performance assumptions on a consistent basis. Do not divide the upfront cost by a single year’s generation and call it a lifetime electricity price.

Are commercial solar panels worth it for your business?

Daytime use is the key variable to test. Electricity used at your site has a different value from electricity sold under an export contract. Ofgem’s Smart Export Guarantee (SEG) provides an export payment route for eligible generation [S3]; it does not establish your site’s import or export tariff.

This is an illustration, not a quote. Every financial and generation input in the table is an assumption.

Gross annual value = on-site kWh × £0.25 + exported kWh × £0.05. Net project value = gross annual value − £500. For the mid case: 27,000 × £0.25 + 18,000 × £0.05 − £500 = £7,150.

Part funded assumes the host pays £20,000–£30,000 and receives 60% of net project value.

ROI = host annual net benefit ÷ host capital × 100. Payback = host capital ÷ host annual net benefit. Fully funded annual host income would be £445 / £715 / £985 at the assumed 10% share of net project value.

That fully funded share is an assumed contractual payment, not a published offer. It assumes the contract allocates the remaining energy and export value to the provider and the provider pays operating costs. Do not also count all avoided imports as host savings. Actual power purchase agreements may instead offer an electricity tariff, with no cash income.

The self funded and part funded figures combine avoided electricity purchases and export receipts; they are not all cash revenue. The model excludes degradation, finance, tax, insurance, downtime, roof work, replacements and network upgrades. Add them before using solar payback to make a decision.

Which funding model fits your roof?

Fully funded means the provider funds, owns and operates equipment, with roof rights and benefits defined in a contract. Part funded shares capital and allocates a larger host benefit. Self funded puts the capital at risk in your business and leaves you with the net energy value.

Compare lease length, roof repairs, access, tariff changes, removal, sale of the premises and early exit terms. Ask who pays insurance and any business rates assessment. Have your solicitor review the agreement and your accountant check the tax assumptions. Use the power purchase agreement comparison to distinguish an electricity discount from rent or revenue share.

Are commercial solar panel grants available?

Do not assume a general installation grant applies. Check any named scheme’s current eligibility and funding window before subtracting it from capital cost.

Tax relief is separate. HMRC classifies solar panels as special rate expenditure [S4]. Your accountant can assess the appropriate relief using the itemised project cost and ownership agreement. Read capital allowances for solar panels before accepting a tax-adjusted sales figure.

What power and roof checks come before installation?

Your distribution network operator (DNO) checks the local electricity connection. G99 is the engineering standard for relevant generation connected alongside the network [S5]. UK Power Networks reviews commercial solar and storage proposals and identifies required network work [S2].

Ask the installer for a structural assessment, roof condition review, shading model, generation estimate and planning check. Compare generation with your actual opening hours, weekend load and seasonal demand. A large roof alone does not show that the proposed output will be consumed on site.

What should you do next?

Bring electricity bills, interval demand data, roof information and ownership details. Then get matched with an installer that covers your area to request an itemised proposal.

Test your own figures with the income and payback calculator.

Piggy Pineapple Ltd operates this referral service. We refer enquiries to installer partners and may be paid a fee. Our owner holds shares in at least one partner. Before passing on details, we name the proposed partner and disclose whether our owner holds shares in it.