As energy prices soar and sustainability becomes a priority, UK businesses, local authorities, and property managers are increasingly exploring commercial solar panel installation to reduce costs and carbon footprints.
If you’re wondering, “How much do commercial solar panels cost?” this in-depth guide provides expert insights, detailed cost breakdowns, and actionable advice to help you make an informed decision.
Whether you’re a small business owner, a warehouse manager, a school administrator, or a local council representative, this article covers everything you need to know about commercial solar PV systems, their costs, and their benefits.
Commercial Solar Costs & Investing in Your Business
Solar energy is a game-changer for UK businesses, local councils, and organisations looking to save money and go green. Here’s why investing in commercial solar panels makes sense.
Save Money and Gain Energy Freedom
Switching to solar power can cut your electricity bills by up to 70%, delivering major savings over time. By generating your own power, you protect your business from unpredictable energy price spikes, giving you greater control over costs.
Boost Your Sustainability and Reputation
Solar panels help shrink your carbon footprint—a 100kW system can reduce CO2 emissions by up to 64 tonnes a year. This commitment to sustainability not only supports the UK’s net-zero goals but also enhances your brand’s appeal to eco-conscious customers and stakeholders.
Tap into Financial Benefits
With schemes like the Smart Export Guarantee (SEG), you can earn money by selling excess energy back to the grid. Plus, potential tax relief makes solar an even smarter financial move for businesses of all sizes, from small shops to large factories, schools, and public buildings.
Commercial Solar Panel Costs & Factors Affecting Prices
The cost of commercial solar panels in the UK varies based on several factors. When installing solar panels on commercial buildings, understanding these will help you estimate your investment and tailor a system to your needs.
What Impacts Commercial Solar Panel Costs?
Installing solar panels for your business involves several factors that shape the overall cost. Understanding these can help you plan a system that fits your needs and budget.
System Size Matters
The size of your solar system, measured in kilowatts (kW), is the biggest cost driver. Smaller setups of 10–20 kW work well for offices or cafes, while 20–50 kW systems suit warehouses or schools. Large enterprises, like factories or public buildings, often need 50–100 kW or more. Bigger systems require more panels and labor but can lower the cost per kW due to economies of scale.
Choosing the Right Panels
The type of solar panels you choose affects both cost and efficiency. Monocrystalline panels, with 15–20% efficiency, are pricier but ideal for limited roof space. Polycrystalline panels are about 20% cheaper, making them a great option for larger roofs where space isn’t a concern.
Installation Challenges
The complexity of your site impacts costs. Flat roofs are easier and cheaper to work with compared to pitched or intricate designs. Older buildings might need structural upgrades, adding to expenses. Ground-mounted systems, requiring land preparation and foundations, tend to cost more than roof installations.
Extra Components Add Value
Optional features can boost your system’s performance but increase costs. Solar batteries, ranging from £10,000 for a 10kWh unit to over £50,000 for larger ones, store excess energy for peak times or outages. Inverters, which convert DC to AC power, vary in price, with microinverters offering better efficiency in shaded areas. Monitoring systems, costing £500–£2,000, help you track energy production.
Labour and Location Costs
Labour costs, typically £0.30–£0.50 per watt, depend on project complexity and location. Standard installations need MCS-certified technicians, but complex projects might require engineers, raising costs. Remote locations can increase transport expenses, and while most installations fall under Permitted Development Rights, listed buildings or conservation areas may need special approvals. Large systems feeding power to the grid also require Distribution Network Operator (DNO) approval, adding to the budget.
Average Costs of Commercial Solar Panels in the UK (2025)
Here’s a detailed breakdown of commercial solar panel costs based on system size, excluding VAT, as of June 2025.
These figures include panels, inverters, mounting systems, wiring, and labour for a typical roof-mounted installation using monocrystalline panels.
System Size (kW) | Cost Range (£) | Suitable For | Break-Even Period |
10 kW | £13,000–£15,000 | Small offices, retail shops | 5–6 years |
20 kW | £16,000–£30,000 | Small warehouses, schools | 4–5 years |
50 kW | £33,000–£60,000 | Medium factories, leisure centres | 3–6 years |
60 kW | £39,000–£75,000 | Large offices, hospitals | 3–5 years |
80 kW | £50,000–£100,000 | Industrial units, universities | 3–6 years |
100 kW | £60,000–£120,000 | Large factories, distribution centres | 2–5 years |
Costs are estimates and vary based on site-specific factors. For precise figures, request quotes from MCS-accredited installers.
Financing Options for Commercial Solar Panels
The upfront cost of solar PV systems can be daunting, but several financing options make them accessible to businesses, local authorities, and public sector organisations.
1. Outright Purchase
Paying upfront maximises long-term savings but requires significant capital. Suitable for businesses with available funds or public sector organisations with budgets for sustainability projects.
2. Solar Leases
Lease a solar system from a third-party provider for a monthly fee, saving 10–30% on electricity bills without upfront costs.
3. Power Purchase Agreements (PPAs)
A third-party developer installs and maintains the system, and you buy the generated electricity at a fixed, lower rate. PPAs can save 17% on electricity bills.
4. Asset Finance and Loans
Spread costs over time with loans or finance agreements. Some providers offer 100% asset finance, and businesses may claim tax relief through the Annual Investment Allowance.
5. Government Incentives
While commercial solar panel grants for businesses are limited in 2025, businesses can benefit from:
- Smart Export Guarantee (SEG): Earn payments for excess electricity sold to the grid.
- Tax Relief: Claim capital allowances on solar installations (consult a tax advisor).
- Local Council Schemes: Some councils offer funding for energy efficiency projects.
Return on Investment (ROI) and Payback Period
The main thing for businesses investing in solar is the ROI. The ROI for commercial solar panels depends on energy savings, system size, and incentives. On average, businesses achieve:
- Payback Period: 2–6 years, depending on system size and electricity usage.
- Annual Savings: A 20kW system can save £4,595 annually, while a 100kW system may save £15,000–£20,000.
- Lifetime Savings: Over 25–40 years, savings can reach tens of thousands of pounds.
Example: A 50kW system costing £45,000 saves £10,000 annually, breaking even in 4.5 years. After this, the electricity is essentially free, boosting profits.
Solar Solutions for Every Business
Commercial solar panels offer unique benefits depending on your business type. Here’s how solar can work for different stakeholders, from small shops to large factories.
Small Businesses: Retail, Cafes, and Offices
For small businesses, a solar system of 10–20 kW, costing £13,000–£30,000, is often the perfect fit. These setups can significantly cut electricity bills while making efficient use of limited roof space.
Plus, going solar boosts your brand’s appeal to eco-conscious customers. If your roof is small, monocrystalline panels are a great choice for their high efficiency.
Medium-Sized Businesses: Warehouses, Schools, and Leisure Centres
Warehouses, schools, or leisure centres can benefit from 20–60 kW systems, priced between £16,000 and £75,000.
These are ideal for businesses with high daytime energy use, offering substantial savings and helping meet environmental, social, and governance (ESG) goals. Adding solar batteries can store energy for evening use, especially for places like leisure centres, and helps earn community support for your green efforts.
Large Enterprises: Factories and Distribution Centres
For factories or distribution centres, larger 80–100 kW systems, costing £50,000–£120,000 or more, deliver big rewards.
These setups maximise savings through economies of scale and allow you to sell excess energy via the Smart Export Guarantee (SEG). They also position your business as a leader in sustainability. To keep upfront costs low, consider Power Purchase Agreements (PPAs).
Benefits for Local Authorities
Hospitals, universities, and council buildings can lead the way in sustainability with commercial solar panels, offering both environmental and financial benefits tailored to public sector needs.
A solar system of 50–100 kW or more, costing between £33,000 and £120,000, is ideal for large public buildings.
These setups help meet ambitious carbon reduction targets while securing significant long-term energy savings. By adopting solar, public sector organisations set a powerful example for sustainability, inspiring communities to follow suit.
Smart Funding Tip
To make solar more affordable, tap into council funding or public sector budgets dedicated to renewable energy projects, which can help cover installation costs and maximise your investment.
Additional Considerations
Maintenance Costs
Commercial solar panels require minimal maintenance, typically costing £500–£1,500 annually for cleaning, inspections, and inverter checks.
Panels last 25–40 years, while inverters may need replacement after 10–15 years.
Choosing an Installer
Select an MCS-accredited installer to ensure quality and eligibility for incentives. You’ll be glad to know The Commercial Solar Company is MCS accredited, so we can help with your commercial solar journey.
We have experience in designing and installing commercial commercial projects, so speak to one or our experts today for your free business consultation
Site Assessment
A professional survey assesses the suitability of the roof, shading, and energy needs.
This ensures optimal panel placement and system sizing.
How to Get Started
- Assess Your Energy Needs: Review your electricity bills to determine usage patterns.
- Request Quotes: Contact 3–4 MCS-accredited installers for tailored quotes. Use services like GreenMatch or Renewable Energy Hub to compare.
- Conduct a Site Survey: Schedule a survey to evaluate roof or ground suitability.
- Explore Financing: Discuss leases, PPAs, or loans with installers or financial advisors.
- Apply for Permits: Confirm if planning permission or DNO approval is needed.
- Install and Monitor: Work with your installer to complete the project and set up monitoring systems.
Conclusion
Investing in commercial solar panels in the UK is a strategic move for businesses, local authorities, and public sector organisations aiming to cut costs, achieve energy independence, and enhance sustainability.
While costs range from £13,000 for a 10kW system to £120,000 for a 100kW system, the long-term savings, ROI, and environmental benefits make it a worthwhile investment.
By understanding factors like system size, panel type, and financing options, you can tailor a solution to your needs.
Ready to take the next step? Contact us here at The Commercial Solar Company as MCS-accredited installers today for free, no-obligation quotes. Start your journey to cheaper, greener energy and position your organisation as a leader in sustainability.
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Disclaimer: Costs and savings are estimates based on 2025 data and may vary. Consult installers and financial advisors for precise figures.
