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A typical home solar system is worth around £410 to £470 a year on an east-facing or partly shaded roof, rising to around £605 to £675 a year on an ideal south-facing roof with no shading. Those figures combine electricity bill savings and Smart Export Guarantee payments, at June 2025 prices.
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For a domestic system, the typical installed cost runs from £5,000 to £10,000 depending on size, roof type and specification. Commercial systems vary more widely because array size, grid connection requirements and roof complexity all pull the figure in different directions. The only reliable way to assess cost for your building is to collect several quotes based on an actual site survey.
Installation of solar panels on residential buildings is currently zero-rated for VAT at 0%, a rate that runs to 31 March 2027. After that date the rate reverts. If your contract completion date falls before the deadline, confirm with your installer that the zero rate applies to your specific project and that it is reflected in the quoted price.
If your installation is certified under MCS or an equivalent approved scheme, your electricity supplier is required to offer you a Smart Export Guarantee tariff. The rate is set by the supplier, must be above zero, and varies significantly between suppliers, so it is worth comparing tariffs before you apply rather than defaulting to your existing supplier.
For a domestic system on an ideal south-facing roof, the typical payback period is 9–12 years, calculated using Energy Saving Trust figures and June 2025 fuel prices. An east-facing or shaded roof extends that period. Commercial buildings with high daytime consumption and a large self-consumption ratio can achieve faster payback, but any figure a salesperson quotes should come with stated assumptions about orientation, shading and usage.
Roof-mounted panels on most commercial buildings fall under permitted development rights, but there are exceptions. Buildings in conservation areas, listed structures, and flat-roof installations that alter the roofline visibly can all require consent. Ground-mounted arrays almost always need planning permission. Check with your local planning authority before committing to an installation timeline.
A thorough commercial solar quote names the panel manufacturer and model, the inverter specification, the projected annual yield in kWh, the assumed self-consumption percentage, and the warranty terms for both the equipment and the workmanship. It should also clarify who handles the grid connection application and the MCS registration. A quote that omits these details makes proper comparison with other proposals difficult.
The Smart Export Guarantee is not a grant. It is a payment your electricity supplier makes for each unit of electricity your solar system exports to the grid. The rate is commercial, set by the supplier, and varies between them. There is no lump-sum payment and no government fund involved, the obligation sits with qualifying suppliers, not the government directly.
A typical domestic solar installation costs between £5,000 and £10,000, yet two households side by side can pay very different prices for the same output. For commercial solar panels, the gap between quotes is often wider still, roof size, consumption pattern and installer pricing all pull in different directions.
This page helps you understand what drives that price difference, what your roof and energy profile mean for payback, and how to gather real quotes from qualified installers so you can weigh them against each other on the same terms.
Below is a comparison of what each type is like.
Panels fix directly to an existing roof. They feed electricity into the building during daylight hours. Any surplus goes to the grid under the Smart Export Guarantee. This is the most common starting point for commercial sites. SEG export payments apply once the system is MCS-certified. The rate is set by the supplier and must always be above zero.
A battery lets the building store midday generation and use it in the evening. This raises the share of consumption the system covers. That share is the single biggest lever on how fast the system pays back. The higher upfront cost extends the payback period. Battery warranty terms vary and are often shorter than panel warranties. The added parts also need periodic servicing.
Where the roof is too small or not suitable, panels mount on a frame in a yard or field. This gives full control over orientation and pitch. There are no limits from the existing roof structure. Groundwork and installation costs are typically higher than for roof-mounted systems. Available land is needed, and planning permission may apply. A site survey is needed to check for shading from buildings or trees.
BIPV panels become part of the building itself. They replace roof tiles, cladding or glazing. This makes them a natural fit for new-builds or refurbishments where appearance or planning rules rule out standard mounting. Part of the cost offsets what would have been spent on the building material they replace. Output per square metre is often lower than on a tilted rack-mounted system. Repairs need specialist BIPV contractors rather than general solar installers. Panels typically carry 20 to 25 year product warranties.
Start with certification: any installer quoting for a commercial solar system should be registered under MCS or an equivalent approved scheme. MCS registration is not a bonus, it is a condition for your installation to qualify under the Smart Export Guarantee, so an uncertified quote locks you out of export payments from day one.
Next, look at what the quote actually contains. A serious proposal names the panel make and model, the inverter specification, the projected annual yield in kWh, the assumed percentage of that yield your site will consume directly, and the warranty terms for both components and workmanship. A quote that skips those details makes meaningful comparison impossible.
Finally, match the installer's experience to your building type. A company that mainly fits domestic systems may not carry the commercial-grade equipment or the design software to size a larger array correctly. Ask for references from commercial projects of a similar scale, and confirm whether the installer handles the grid connection application or leaves that to you.
Fill in one short form about your building and energy use, and qualified, MCS-certified installers get in touch with concrete figures tailored to your roof and consumption profile. You receive several offers and choose on the numbers, not on whoever answers the phone first.
The service is free and carries no obligation to proceed. Pricing, warranties and projected output are shown in each quote so you can compare like for like.
Get your quotes and make a confident, informed decision, start by completing the form now.
The more kilowatt-peak (kWp) of capacity you install, the higher the total cost, though the price per kWp tends to fall as the system grows larger. A commercial building with high daytime consumption generally benefits from a larger array, but the right size depends on your actual load profile, not just roof space. Oversizing beyond what you can consume directly reduces the financial case unless battery storage is part of the plan.
A flat commercial roof with good access and a sound waterproof membrane is straightforward to work on; a pitched roof with fragile tiles, complex flashing or restricted access adds time and materials to the installation. If the roof is approaching the end of its useful life, replacing it before panels go on is worth factoring into the budget, removing and reinstalling a full array mid-warranty is expensive. A pre-installation roof survey should be part of any serious quote.
The inverter converts DC power from the panels into AC power the building can use, and its specification, string, micro, or hybrid, affects both cost and how the system handles partial shading. Adding battery storage raises the upfront figure substantially but can increase the share of generation consumed on-site. Panel warranties typically run 20–25 years; inverter warranties are shorter, around 5–15 years, so factor replacement into your lifetime cost calculation.
A larger commercial system may require a formal application to the distribution network operator before it can export to the grid, and the connection upgrade can add cost and lead time. Where the building is listed or sits in a conservation area, planning permission for visible panels is likely, adding both professional fees and uncertainty to the project timeline. Ground-mounted arrays almost always require planning permission regardless of location.
Item | Value |
|---|---|
Typical payback period | 9–12 years (ideal roof; longer if east-facing or shaded) |
Typical panel/product warranty | panels typically 20–25 years; inverters ~5–15 years |
VAT on residential solar installation | 0% (zero-rated to 31 Mar 2027) |
Typical installed system cost (domestic) | £5,000–£10,000 |
Annual benefit incl. Smart Export Guarantee (up to) | £605–£675 a year with an ideal south-facing roof; £410–£470 east-facing or shaded (bill savings plus SEG export payments, June 2025 prices) |
Facts verified as of 2026-06-30.
Once you have chosen an installer and signed a contract, the installer carries out a full site survey if one has not already been completed. They confirm structural integrity, shading, metering arrangements and grid connection requirements before any materials are ordered.
Installation itself typically takes one to three days for a commercial roof-mounted array, though larger systems or those requiring scaffolding take longer. After the panels and inverter are commissioned, the installer registers the system with MCS and issues the certificate you will need for the Smart Export Guarantee.
With the MCS certificate in hand, you apply to your electricity supplier for a SEG tariff. Suppliers with at least 150,000 domestic customers are obliged to offer one; the rate they pay is set by the supplier and must be above zero, so it is worth comparing tariffs before you apply. Export payments then appear on your bill on the schedule agreed with your supplier.
Prices and rates reviewed 30 June 2026
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