In this 10-minute read, we reveal everything that UK businesses need to know about commercial solar panel installation, operation, maintenance and financing — with the most up-to-date guidance for 2025.
Why are businesses choosing commercial solar panels?
With rising electricity prices and growing pressure to reduce carbon emissions, solar energy offers a practical solution that benefits both the environment and the bottom line. Here’s why more companies are making the switch.
Lower energy costs
Installing commercial solar panels can lead to significant long-term savings on electricity bills. Over the average 25-year lifespan, these systems can reduce energy costs by thousands of pounds, helping businesses to reinvest in other areas. Even a relatively small 20kW solar installation could save a company over £3,000 annually by reducing reliance on expensive grid electricity.
See how much your business could save each year by switching to commercial solar panels with our easy-to-use online calculator.
Energy independence
Moving to solar energy gives businesses more control over their power supply, reducing dependence on external providers and insulating them from fluctuating energy prices. Combining solar panels with battery energy storage systems offers even greater independence, allowing solar energy to be stored for use during supply interruptions, particularly valuable in industries where a consistent and reliable supply is business-critical.
Additional revenue
As well as cutting costs, commercial solar panel arrays can also generate additional revenue. Businesses that produce excess solar energy can sell it back to the grid through schemes like Power Purchase Agreements (PPAs) or via wholesale energy trading. With the right setup, commercial solar panels can become a valuable asset that contributes significantly to a company’s bottom line.
Sustainability goals
Investing in solar power is not just a financial decision—it’s also a step towards a more sustainable future. Solar energy is clean, renewable, and carbon-neutral, making it an attractive choice for companies aiming to align with sustainability targets. In addition to regulatory compliance, switching to solar energy can strengthen your company’s reputation, appealing to eco-conscious customers, investors, and stakeholders.
How much do commercial solar panels cost?
Investing in solar power is not just a financial decision—it’s also a step towards a more sustainable future. Solar energy is clean, renewable, and carbon-neutral, making it an attractive choice for companies aiming to align with sustainability targets. In addition to regulatory compliance, switching to solar energy can strengthen your company’s reputation, appealing to eco-conscious customers, investors, and stakeholders.
- System size: measured in kilowatt peak (kWp), with larger systems costing more but offering greater long-term savings.
- Panel type and quality: higher-efficiency panels may have a higher upfront cost but generate more energy over time.
- Installation complexity: roof-mounted systems are typically more expensive than ground-mounted ones due to structural and accessibility considerations.
- Additional equipment: inverters, battery energy storage systems, and monitoring systems can add to the overall cost.
- Location: labour costs and site accessibility can impact installation expenses.
Providing exact figures is difficult, but as a guide, here are estimated cost ranges for different business sizes in the UK. These estimates assume a standard roof-mounted installation based on typical energy consumption and available roof space.
Small businesses (small offices, shops, cafés)
Providing exact figures is difficult, but as a guide, here are estimated cost ranges for different business sizes in the UK. These estimates assume a standard roof-mounted installation based on typical energy consumption and available roof space.
- System size: 10 – 50 kWp
- Estimated cost: £15,000 – £60,000
Medium businesses (larger offices, warehouses, factories)
Medium-sized businesses may require a commercial solar panel installation which covers a significant portion of their energy needs.
- System size: 50 – 250 kWp
- Estimated cost: £60,000 – £250,000
Large businesses (large-scale manufacturing, industrial estates)
Larger enterprises with high energy demands can benefit from large-scale solar installations that can significantly reduce operational costs.
- System size: 250+ kWp
- Estimated cost: £250,000+
Of course, the actual cost of a commercial solar panel installation depends on your business’s precise energy needs, roof space, and preferred financing model. At JLM, we can provide a tailored assessment, helping you explore funding options, Power Purchase Agreements, and grants to maximise your savings.
Did you know?
Research by Ofgem indicates that as many as two-thirds of small businesses don’t know their exact annual energy consumption. For a clear picture of the energy you’re using, consumption patterns, and opportunities to reduce costs, book a free remote energy audit with JLM — and receive a detailed PDF report with personalised recommendations.
How do Power Purchase Agreements work?
Power Purchase Agreements (PPAs) provide businesses with a no-upfront-cost solution for commercial solar PV installation. Under a PPA, JLM Energy handles the installation and maintenance of the system, while your business purchases the electricity generated at a significantly reduced, fixed rate, as much as 50% lower than standard grid prices.
Our PPAs can also cover the installation of related assets — including new or upgraded roofing, asbestos removal or encapsulation, and complementary technologies such as commercial air source heat pumps or battery energy storage systems, all at no upfront cost. This allows businesses to take full advantage of the financial, reputational and operational benefits of sustainable energy generation, storage and heating/cooling without the capital expenditure that would usually be required, while adding significant value to their built estate.
Are there grants or incentives available for commercial solar panels?
As of 2025, the UK Government is not currently providing direct grants for solar panel installation in a commercial setting, although these schemes have been available in the past. However, there are local initiatives, including grants, available to certain businesses depending on location, size and sector. At a national level, there are also financial incentives available for businesses generating clean energy in the form of energy export payments and a reduction in the climate change levy.
Smart Export Guarantee (SEG)
SEG allows businesses generating low or zero-carbon energy to receive payments from electricity suppliers when they export that energy to the National Grid. This includes solar energy, as well as other technologies such as wind, hydroelectric and micro-CHP. If your business is looking to take advantage of this scheme, JLM can advise on the best supplier to partner with based on your specific circumstances.
Climate change agreements (CCAs)
CCAs are voluntary agreements made between businesses and the UK Environment Agency to reduce their CO₂ emissions and overall energy use. Businesses meeting energy efficiency targets laid out in the agreement then receive a discount on the Climate Change Levy (CCL) added to their energy bills. The current CCA scheme runs until the end of March 2025, however, the scheme will be extended until 2033. For the latest information, see the GOV.UK website.
Local opportunities
At a regional level, there is a range of grant and funding programmes available for commercial solar panel installation, usually administered by local authorities. To find out if your business may be able to access funding in your area, visit your local council website or review the updated list of opportunities provided on the OFGEM website.
How much can my business save by moving to solar energy?
The potential savings from commercial solar panels depend on factors such as system size, funding model, and energy consumption. Below, we outline three common ways to purchase a 150kW solar PV system — a commercial solar panel installation suitable for medium-sized businesses — each offering different financial benefits.
Direct purchase (CapEx)
For businesses with available capital, purchasing a solar system outright delivers the highest long-term savings. By paying for the system upfront, businesses can immediately benefit from reduced electricity bills and avoid ongoing financing costs. This model provides the fastest return on investment, with a typical payback period of just a few years.
- Upfront cost: £110,000 – £150,000 (fully installed)
- Annual electricity savings: £27,000 – £32,000
- Payback period: 4 – 5 years
- Total savings over 10 years: £200,000 – £250,000
- Total savings over 20 years: £400,000+
Ideal for: Businesses with long-term property security that want to maximise savings and energy independence.
Power Purchase Agreement (PPA)
A PPA allows businesses to install commercial solar panels with zero upfront cost and start saving immediately. Instead of purchasing the system, the business agrees to buy the electricity it generates at a lower fixed rate than the grid. This option provides immediate cost reductions without the need for capital investment or system maintenance responsibilities.
- Upfront cost: £0
- Electricity cost via PPA: 18 – 22p/kWh (vs. ~30p/kWh from the grid)
- Annual savings: £10,000 – £14,000
- Total savings over 10 years: £100,000+
- Total savings over 20 years: £200,000+
- Ownership: Typically transfers to the business after 20-25 years
Ideal for: Businesses with long-term property security that want to maximise savings and energy independence.
Finance / Lease Models
For businesses that want ownership but need to preserve cash flow, financing offers a structured repayment plan. Instead of paying upfront, businesses spread the cost over several years through fixed monthly payments. Once the cost of the commercial solar panel installation is paid off, they can enjoy substantial long-term savings similar to the CapEx model.
- Upfront cost: £0
- Monthly repayments: £1,800 – £2,200 (over 5-7 years)
- Breakeven point: 7-8 years
- Long-term savings (after repayments): £300,000+ over 20 years
Ideal for: Businesses that want ownership but prefer to spread out costs over time.
Do you need planning permission to install commercial solar panels?
You may need planning permission to install solar panels at a commercial premises, although this is not always the case. For the majority of businesses, installing a roof-mounted solar PV system under 1 MW falls under Permitted Development as long as certain criteria are met, such as total height, spacing of panels and suitable plans in place for decommissioning when the system is no longer required.
However, there are exceptions — for example, if your business is situated on a World Heritage Site or within the boundary of a listed building, there may be greater restrictions on the type and number of solar panels you can install.
For ground-mounted solar panels, planning permission is generally required for any system with a footprint greater than nine square metres, which applies to almost all commercial solar panel installations. You’ll therefore need to submit a full planning application to the local authority before starting work. It’s also important to remember that once the initial installation is complete, you may require separate planning permission to make any changes to the system, such as installing additional panels or changing the type of panels used.
Are there any downsides to installing commercial solar panels?
We talk to a lot of businesses about switching to solar energy, and we understand that some have reservations about making the move. From concerns about costs to a perceived lack of space, we’ve outlined some of the key factors that might dissuade companies from adopting commercial solar panels — and offered advice on mitigating them.
Initial capital expenditure
While investing in commercial solar panels brings clear long-term financial and environmental benefits, some businesses are understandably put off by the initial installation cost of a solar PV system.
However, as we’ve discussed, in today’s market, there is a range of funding models available to businesses to offset this, in some cases allowing you to realise the benefits of solar energy from day one without any capital expenditure — including Power Purchase Agreements and asset financing.
Productivity concerns
Solar generation is intermittent by nature, with seasonal changes in daylight hours and local weather conditions affecting how much energy can be generated. It’s a common concern for businesses purchasing solar PV infrastructure, particularly in areas of the country with lower-than-average sunlight, as it means a longer time to profit.
This can be mitigated by combining a solar PV installation with a battery energy storage system (BESS) — allowing solar-generated energy to be stored and used (or monetised) at any time of day.
Available space
Some businesses worry that they don’t have enough roof or land space to install an effective solar PV system. While larger premises naturally have more room for solar panels, even businesses with limited space can often benefit from a well-designed system.
Today’s commercial solar panels are designed to be compact and efficient, with high-efficiency panels generating more power from a smaller footprint. If roof space is limited, businesses with surrounding land may consider a ground-mounted solar system, which can be scaled to meet energy needs, or solar carports, to generate electricity while providing shelter for vehicles.
Operational impact
Businesses may hesitate to install solar PV systems due to concerns about disruption to daily operations during installation. While solar panel installation does involve some temporary site work, a well-planned project minimises downtime and interference.
Most roof-mounted solar installations are completed within a few days to a few weeks, depending on system size, and work can be scheduled around business operations to prevent disruption to employees and workflows. Once installed, solar PV systems have minimal maintenance needs, typically requiring only periodic cleaning and inspections to ensure optimal performance.
How can we get started with commercial solar panels?
If your business is planning to make the switch to solar energy, it’s important to get a clear picture of your current energy consumption to understand the system size and specification that would work best for your circumstances.
JLM offers a free, comprehensive remote energy audit which examines your energy consumption data, building characteristics, and operational requirements to identify targeted opportunities for energy savings and efficiency improvements.
At the end of the process, we’ll send you a personalised PDF report including recommended improvements such as solar panel installation, full cost breakdowns, potential savings and predicted return on investment — all based on your real-world energy usage and customised to your business objectives.
Contact one of our expert consultants to book your audit and answer any other questions you may have about commercial solar PV.
