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How much can I save with solar panels?

Yearly value, south-facing roof (our calculation)£523 to £603

On our calculation, a 4 kWp system without a battery is worth around £523 to £603 a year on a south-facing roof and £435 to £495 on an east-facing roof, if you buy your electricity from the supplier that pays you 12p per kWh for exports. At an export rate open to anyone (about 4p), a south-facing roof is worth around £299 to £333. That's bill savings plus Smart Export Guarantee payments, for a household using 2,500 kWh a year at the October to December 2026 price cap.

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Commercial solar panels: your questions answered

Answers to the most common questions.

Do commercial solar installations need planning permission?

Not always, but more often than domestic systems. Permitted development rights cover some rooftop commercial arrays, but ground-mounted systems, listed buildings and sites in conservation areas usually require a formal planning application. Check with your local planning authority early. The answer affects both your timeline and your installed cost.

What payback period should commercial solar panels achieve?

For a well-sited domestic system on a south-facing roof, our calculation puts payback at about 11 to 16 years if you also buy your electricity from the supplier that pays 12p per kWh for exports, and about 20 to 28 years at an open export rate of about 4p; east-facing or shaded roofs take longer. Commercial sites with high daytime consumption and low export can see faster payback, because more generated power displaces expensive grid electricity directly. Any quote you receive should show the assumptions behind its payback figure, including system size, usage profile and the tariff rates used.

How does the Smart Export Guarantee work for commercial solar panels?

Once your system is MCS-certified and live, you can apply to a licensed supplier for a Smart Export Guarantee tariff on surplus power you export. Suppliers with at least 150,000 domestic customers are required to offer one. Rates are set by the supplier and must be above zero, but they vary widely. Comparing tariffs before committing to a supplier can meaningfully affect your long-term return, so ask each installer which SEG suppliers they recommend.

Is VAT charged on commercial solar panel installations?

The zero-rate VAT position that applies to residential solar does not extend to ordinary commercial buildings; it covers residential accommodation (including blocks of flats, care homes, student accommodation and self-catering holiday lets) and buildings used solely for a relevant charitable purpose. The 0% zero-rated VAT on installing energy-saving materials runs to 31 March 2027 for qualifying installations. Eligibility depends on the nature of the building and its end use. Confirm the VAT treatment that applies to your specific project with your installer and, if needed, your accountant.

What certifications and warranties should a commercial installer provide?

Ask for current MCS certification and evidence of comparable commercial projects completed. On warranties, keep three things separate: the panel product warranty (length varies by manufacturer, so check the term on each quote), the inverter warranty (typically 5 to 15 years), and the installer's own workmanship guarantee. All three should be confirmed in writing before you sign any contract.

How many quotes should a business get before choosing an installer for commercial solar panels?

For commercial solar panels, where capital outlay, roof complexity and grid-connection requirements are greater than a domestic install, collecting at least three detailed proposals gives you a much clearer picture of what a fair price and a thorough scope of work look like. Fill out one form and relevant, MCS-certified installers will get in touch with personal quotes for your site. There is no fee and no obligation to proceed.

Commercial solar panels

Many businesses request a single quote and sign on the spot, missing real differences in system sizing, panel warranties and long-term yield. Commercial solar panels are a significant capital decision, and the proposal you accept will shape your energy costs for decades.

This page helps you understand what drives price and payback, what to check in a quote, and how to request offers from several vetted, MCS-certified installers who contact you directly with proposals tailored to your building and consumption.

In short

  1. Compare offers from several MCS-certified installers before you commit
  2. Check the VAT rate: the 0% rate to 31 March 2027 covers residential accommodation and qualifying charity buildings, not most commercial sites
  3. Panel product warranties vary; check the length and that it covers your site
  4. Earn export payments through the Smart Export Guarantee once your system is MCS-certified
  5. Request quotes free of charge with no obligation to proceed

Four types of commercial solar panels: which fits your site?

Below is a comparison of what each type is like.

Rooftop ballasted system

Panels sit on a flat commercial roof inside weighted frames. No fixings pierce the roof, so the membrane stays intact and install crews can work fast across large areas.

Pros

  • No roof holes, so leak risk stays low
  • Fast to install on a large flat roof

Cons

  • Ballast weight must stay within the roof load limit
  • Pitch is fixed, so orientation cannot always be fine-tuned

Rooftop pitched system

Panels clamp onto rails fixed to a sloped roof. The natural pitch and compass bearing can line up close to solar south, which lifts annual yield. The roof's angle does much of the orientation work for you.

Pros

  • Roof pitch handles orientation with no extra structure
  • Lower wind load than a raised ballasted array

Cons

  • Roof age and condition matter more here: replace a failing roof before panels go on
  • Fixings need careful waterproofing and may need planning consent

Ground-mounted array

A steel frame sits on open land next to the building. The installer sets the exact tilt and bearing, free from any roof constraint. Access for cleaning and checks is straightforward.

Pros

  • Full control over tilt and orientation
  • Easy access for cleaning and upkeep

Cons

  • Requires suitable land and may need planning permission
  • Civil and structural costs are higher than a rooftop install

Solar carport

Panels form the roof of a canopy over a car park. The structure generates power while giving shade and weather cover to vehicles below. It puts land that is already paved to dual use.

Pros

  • Dual use of paved land already on site
  • A clear signal to staff and visitors that the business takes sustainability seriously

Cons

  • Upfront cost is higher than a plain rooftop system
  • Structural design adds lead time and complexity

How to choose a commercial solar installer

  1. MCS certification and commercial track record: Ask specifically whether the installer has signed off commercial projects of a similar scale. Request references from comparable sites.
  2. System sizing against your load profile: an installer who asks for your last 12 months of half-hourly interval data is working from your actual usage curve. That detail drives payback accuracy far more than a rule-of-thumb kWp figure.
  3. Roof or ground survey before quoting: a credible quote follows a physical or detailed desktop survey. Without one, the proposal cannot account for shading, structural load or orientation losses.
  4. Warranties split by component: panel product warranties vary by manufacturer, and most inverters have a warranty of at least five years, which can often be extended (Energy Saving Trust). Confirm the installer's own workmanship warranty is separate from the maker's and covers the full installation.
  5. Smart Export Guarantee tariff review: SEG rates are set by individual suppliers and vary widely. An installer who helps you identify the tariff that fits your export volume adds real value across the system's life. Note that SEG payments require an installation certified under MCS or an equivalent scheme.
  6. Itemised proposals: a sound quote breaks down panels, inverter, mounting, labour, grid-connection costs and any scaffolding as separate lines. That lets you compare offers on like-for-like figures rather than a single total.

Why request your quotes here

Fill out one short form and several vetted, MCS-certified installers will contact you directly with proposals matched to your site, your roof and your consumption. Each offer is based on your specific details, so you can weigh up system size, cost and warranty terms on real numbers rather than headline claims.

The service is free to use and carries no obligation. Compare the offers you receive, ask the questions that matter, and choose the installer whose proposal fits your business. Request your quotes today.

What drives the cost of a commercial solar installation

System size and panel count

Commercial arrays span a wide range of kWp ratings. Cost rises broadly in line with panel count, but larger systems often achieve a lower cost per kWp because fixed design and labour costs are spread across more panels. Size the system to your actual consumption, not the largest roof space available.

Roof type, access and structural work

A clear, unobstructed flat roof with good access costs less to install than a multi-pitched roof requiring specialist scaffolding or structural reinforcement. Ground-mounted and carport systems add civil engineering costs. The survey stage is where these extras surface, factor them in before comparing headline quotes.

Inverter technology and battery storage

String inverters are lower cost; microinverters or optimisers add per-panel electronics that improve performance under partial shading but raise the installed price. Battery storage adds further capital cost. Our solar and battery page explains when storage makes financial sense for a site.

Grid connection and DNO approval

Commercial systems above certain thresholds require a G99 application to your Distribution Network Operator. Connection costs vary by location and grid capacity, and approval can add several weeks to the project timeline. A thorough quote will include a DNO assessment, not treat it as a post-contract surprise.

Domestic solar benchmarks for reference

Item

Value

Typical payback period

about 11–16 years south-facing and 13–19 east-facing if you buy your electricity from the supplier paying 12p for exports; about 20–28 years south-facing at an open rate of about 4p (our calculation)

Typical panel/product warranty

panels: terms vary by manufacturer; inverters: at least 5 years, often extendable (Energy Saving Trust)

VAT on residential solar installation

0% (zero-rated to 31 Mar 2027)

Typical installed system cost (domestic)

£7,600 approx. for a typical 4.5 kWp home system (Energy Saving Trust, 2026)

Annual benefit incl. Smart Export Guarantee

£523–£603 a year south-facing and £435–£495 east-facing if you buy your electricity from the supplier paying 12p for exports; £299–£333 south-facing at an open rate of about 4p (our calculation, 4 kWp, no battery)

Facts verified as of 2026-10-02.

What a 4 kWp home system earns a year depends on the export rate

Our calculation for a 4 kWp home system without a battery in London (£ a year); a domestic benchmark, indicative only for commercial sites

What a 4 kWp home system earns a year depends on the export rate
South-facing, 12p export589
East-facing, 12p export491
South-facing, 4.05p export325

From signed contract to live system

Once you have chosen your installer and agreed terms, the process moves through several defined stages. The installer submits any required planning application first (this applies to listed buildings, conservation areas and some ground-mounted systems), and the wait varies by local authority.

With permissions in place, the installer orders equipment and books the installation date. On-site work for a typical commercial rooftop system takes between one and several days depending on array size and roof access. After installation the installer registers the system under MCS, which is a condition for accessing Smart Export Guarantee payments.

The final step is grid connection: your Distribution Network Operator tests and approves the export connection before the system can export power. Once that sign-off arrives, the system goes live and you can apply to a licensed electricity supplier for an SEG tariff.

Five things to check before you commit to commercial solar panels

  1. Confirm the installer holds current MCS certification and has done commercial work at a similar scale to yours.
  2. Check planning rules with your local authority before any price is agreed. Listed buildings and conservation areas face stricter controls.
  3. Ask for the full warranty split in writing: panel product warranties vary by manufacturer, inverters typically carry a 5–15 year warranty, plus the installer's own workmanship cover.
  4. Make sure the quote includes a DNO application and states clearly whether grid-connection costs are fixed or may change after the network assessment.
  5. Check whether your site qualifies for VAT relief. The 0% rate runs to 31 March 2027 and covers residential accommodation and qualifying charity buildings, not most commercial sites. From 1 April 2027, eligible installations move to the 5% reduced rate. Confirm with your installer which rate applies at your contract date.

Mistakes that cost commercial buyers

  1. Accepting the first quote without comparisonA single proposal gives you a number, not a benchmark. System sizing, inverter choice and workmanship warranties differ significantly between installers, and those differences compound over a 25-year asset life. Collect several proposals before signing.
  2. Ignoring shading and roof orientation in the briefA quote built on a generic kWp assumption rather than a shading analysis and orientation check will overstate yield. East-facing or partially shaded arrays produce less than an ideal south-facing roof, so payback on those sites is typically longer. Push every installer to model your actual roof, not a textbook case.
  3. Treating the Smart Export Guarantee as a fixed incomeSEG payments require an installation certified under MCS or an equivalent scheme, and the rate is set by individual suppliers and can change. Basing your payback calculation on today's export rate without noting that assumption inflates the projected return. Ask each installer to show you the SEG rate they have used and which supplier offers it.

Terms you will meet in commercial solar quotes

kWp (kilowatt-peak)
The rated output of a solar panel or system under standard test conditions: full, direct sunlight at 25 °C. Real-world output is always lower; kWp is used to compare systems, not to predict your actual annual generation.
MCS (Microgeneration Certification Scheme)
The UK certification framework that qualifies both installers and products for domestic and small commercial solar. Certification under MCS or an equivalent scheme is a condition of Smart Export Guarantee payments.
Smart Export Guarantee (SEG)
A scheme requiring electricity suppliers with at least 150,000 domestic customers to offer a tariff for surplus power exported to the grid. Rates are supplier-set, must always be above zero, and vary, comparing tariffs across suppliers is worthwhile before you sign up.
DNO (Distribution Network Operator)
The licensed company that owns and operates the electricity distribution cables in your area. For commercial solar systems above certain output thresholds, you must apply to your DNO for permission to connect and export. This process is called a G99 application and can affect your project timeline.

Prices and rates reviewed 2 October 2026