Commercial solar costs and what drives them
Commercial system costs vary widely with size. According to renewableenergyhub.co.uk (2026), a small 25 kW system costs around £25,000, a medium 100 kW system ranges from £85,000 to £130,000, and a large 1 MW installation runs from £750,000 upwards. Roof type, mounting method, distance to the distribution board, and DNO connection requirements all influence the final figure.
Payback depends on how much of the generated electricity the business uses directly. As a domestic benchmark, our calculation puts payback for a 4 kWp home system at about 11 to 16 years on a south-facing roof with a 12p export rate from the household's own supplier, and about 20 to 28 years at an open export rate of about 4p; east-facing or shaded installations take longer. High daytime electricity consumption, such as in manufacturing, cold storage, or hospitality, shortens payback because more generated power is used on-site rather than exported at a lower rate.
Businesses that export surplus electricity can receive payment under the Smart Export Guarantee. For further detail on export payments and VAT treatment for commercial systems, the hub page on commercial solar covers these topics in full.