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How much can I save with solar panels?

Typical benefit per year£410 to £675

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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Common questions about commercial solar panels

Answers to the most common questions.

How much does a commercial solar installation typically cost?

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.

What VAT rate applies to solar panel installation?

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.

Will I get paid for electricity I export to the grid?

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.

What is a realistic payback period for commercial solar panels?

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.

Do I need planning permission to install commercial solar panels?

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.

What should a good installer quote include?

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.

How does the Smart Export Guarantee differ from a government grant?

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.

In short

  1. Pay 0% VAT on installation, zero-rated to 31 March 2027, so act before the rate changes
  2. Your roof's orientation and shading directly shape your payback period, which typically runs 9–12 years on an ideal south-facing roof
  3. MCS-certified installation is required before your supplier must pay you for surplus power under the Smart Export Guarantee

Four types of commercial solar panels

Below is a comparison of what each type is like.

Roof-mounted panels (no battery)

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.

Pros

  • Lower upfront cost than battery-paired systems
  • Immediate offset of daytime consumption
  • Eligible for SEG export payments once MCS-certified

Cons

  • No storage means surplus is exported at supplier-set rates, not consumed at full retail value
  • Evening and overnight demand still draws from the grid
  • Return depends on how much consumption falls within generation hours

Roof-mounted panels with battery storage

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.

Pros

  • Higher self-consumption cuts grid draw at peak tariff times
  • Smooths out output on partly cloudy days
  • Can provide backup power depending on system setup

Cons

  • Higher upfront cost adds to the payback period
  • Battery warranty terms vary and are often shorter than panel warranties
  • Inverter and battery management require periodic servicing

Ground-mounted array

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.

Pros

  • Orientation and angle can be chosen freely
  • Easier to expand as the business grows
  • Roof condition and structure set no limit on panel count

Cons

  • Requires available land and may need planning permission
  • Installation and groundwork costs are typically higher than roof-mounted systems
  • Shading from buildings or trees needs a site-specific survey

Building-integrated photovoltaics (BIPV)

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.

Pros

  • Doubles as a building material, so part of the cost offsets construction spend
  • Clean appearance that meets many local planning requirements
  • Panels typically carry 20 to 25 year product warranties

Cons

  • More complex to install and more expensive per watt than standard roof systems
  • Repairs need specialist BIPV contractors, not general solar installers
  • Output per square metre is often lower than on an optimally tilted rack-mounted system

How to choose the right installer

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.

Why request quotes through here

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.

What drives the price of a commercial solar installation

System size and panel count

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.

Roof type, condition and access

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.

Inverter and battery specification

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.

Grid connection and planning requirements

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.

Indicative system cost ranges

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.

From installation to first export payment

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.

Five things to check before you sign

  1. Check that your installer holds a current MCS certificate. Your SEG export payments depend on it.
  2. Ask the quote to name the panel make, inverter model, and both the product warranty and the workmanship warranty. Typical panel cover runs 20 to 25 years; inverters vary from around 5 to 15 years.
  3. Ask who handles the grid connection. Some installers manage it; others leave it to you.
  4. Check whether your property or area needs planning consent before work starts.
  5. Installation currently attracts 0% VAT, zero-rated to 31 March 2027. Confirm that rate applies to your contract date.

Mistakes that cost commercial buyers money

  1. Choosing on headline price aloneA lower quote that omits the inverter specification, skips a roof survey, or bundles a shorter workmanship warranty can cost far more over the system's life than a higher quote that covers all three. Compare every line of each proposal, not just the total figure.
  2. Ignoring the self-consumption ratioThe financial return on a solar system depends heavily on how much of the generation the building actually uses during the day. A system sized for peak roof capacity on a building that is empty at weekends will export most of its output at supplier-set SEG rates rather than displacing grid electricity at retail prices. Size to your load profile, not your roof.
  3. Overlooking planning and grid connection timelinesCommercial installations above certain export thresholds need a distribution network operator application, which can add weeks or months to the project. Buildings in conservation areas or listed buildings may also need planning consent. Assuming the job can start immediately after signing a contract is a common and costly error.
  4. Assuming payback figures apply to your specific sitePublished payback figures, typically 9–12 years for an ideal south-facing roof, are calculated on specific assumptions about orientation, shading and the share of output consumed directly. An east-facing or shaded roof lengthens the period. Ask every installer to show the assumptions behind their payback projection, not just the headline number.

Key Terms for Commercial Solar Panels

kWp (kilowatt-peak)
The rated output of a solar panel or array under standard test conditions: full, direct sunlight at 25°C. Real-world output is nearly always lower. UK irradiance, cloud cover and roof angle all reduce what a system generates. kWp is the unit used to size and price systems. It is the number to compare across quotes.
Inverter
The device that converts direct current (DC) from solar panels into alternating current (AC) for a building's electrics and the grid. Inverters are the part most likely to need replacement during a system's life. Warranty terms of 5–15 years are typical for inverters, compared with 20–25 years for panels.
MCS (Microgeneration Certification Scheme)
The UK framework that certifies small-scale renewable energy systems and the installers who fit them. MCS registration is the condition an installation must meet before your electricity supplier is required to offer you a Smart Export Guarantee tariff. Without it, no export payment applies.
Smart Export Guarantee (SEG)
A UK scheme under which electricity suppliers with at least 150,000 domestic customers must offer a tariff that pays you for electricity your solar system exports to the grid. Each supplier sets its own rate. The rate must be above zero, but it varies widely between suppliers. Checking SEG tariffs before you apply can make a real difference to your annual return.

Prices and rates reviewed 30 June 2026