Pillar guide
Commercial solar finance in the UK: the complete guide
A commercial rooftop array is one of the more predictable investments a UK business can make, which is exactly why it is fundable. This guide covers what an installation costs, how it is normally structured, and the practical issues that decide whether a project completes.
The short version
- Installed commercial rooftop solar commonly runs between £600 and £950 per kWp, falling with scale.
- Hire purchase over five to seven years is the most common structure for businesses that own their premises.
- Roof condition, lease length and landlord consent decide more solar projects than credit ever does.
- Self consumption is where the value sits. Export is a secondary income, not the business case.
What commercial solar costs in the UK
Rooftop pricing is normally quoted per kilowatt peak of installed capacity. Scale, roof type, access and whether scaffolding or a mansafe system is needed all move the figure.
Figures on this page are indicative ranges drawn from UK market pricing we see across quotes and funder appetite. They are illustrations, not quotations, and every project prices on its own scope, site and credit profile.
| System size | Typical £/kWp installed | Rough total |
|---|---|---|
| 10 to 50 kWp | £800 to £950 | £8,000 to £48,000 |
| 50 to 250 kWp | £700 to £850 | £35,000 to £210,000 |
| 250 kWp to 1 MWp | £600 to £750 | £150,000 to £750,000 |
| Ground mount | Project priced | Civils and connection dominate |
- Roof strengthening, asbestos handling and access equipment can add materially and are often missing from a first quote.
- A G99 application is required above the small scale threshold and affects the programme, not usually the price.
- Optimisers, bird protection and monitoring platforms are worth checking line by line when comparing quotes.
How commercial solar is normally funded
Asset finance dominates for owner occupiers. Hire purchase is the most common because the array has a long working life and businesses generally want to own it. Where the initial outlay needs to be lighter, a finance lease works.
| Structure | Typical term | Deposit | Best suited to |
|---|---|---|---|
| Hire purchase | 5 to 7 years | VAT only to 15% | Owner occupiers wanting ownership and allowances |
| Finance lease | 5 to 7 years | 3 to 6 rentals | Lighter upfront cost, off balance sheet preference |
| Staged facility | Set on completion | Project dependent | Larger arrays with phased commissioning |
| Refinance | 3 to 5 years | None | Recently installed arrays paid for in cash |
Roofs, leases and landlord consent
The commonest reason a solar project does not complete has nothing to do with finance. It is the roof, or the lease.
A funder needs reasonable confidence the asset will remain in place and in use for the term. If the roof needs replacing in three years, or the lease has four years left with no option to extend, the project needs restructuring before it needs funding.
- Check remaining roof life against the finance term, and price any strengthening or recovering work upfront.
- Where the premises are leased, establish landlord consent and whether the array can be removed or transferred.
- Shorter unexpired lease terms usually mean shorter finance terms and a larger deposit, if the deal is placeable at all.
Where the value actually comes from
Self consumption carries the business case. Every unit generated and used on site avoids the full import price including standing charges and levies, which is normally well above what the same unit earns on export.
That is why load profile matters. A site that operates daytime shifts through the week captures far more of its own generation than a site that runs at night, and it is why storage improves the numbers on sites with a big export surplus.
Tax treatment in outline
Structure affects tax treatment. Hire purchase generally allows the business to treat the asset as owned for capital allowances purposes, with the interest relieved as charged. Finance lease rentals are generally treated as a deductible expense instead.
Availability and rates of specific allowances change with legislation and depend on the equipment and its use. We are a finance broker, not tax advisers. Confirm the position with your accountant before choosing a structure on tax grounds.
What funders assess on a solar project
Beyond the usual credit review, the questions on a solar case are consistent and easy to prepare for.
- Tenure: do you own the building, and if not, how long is left on the lease.
- Roof condition and any remedial works in the scope.
- Installer track record, equipment brands and the warranty position on panels and inverters.
- The consumption case: how much of the generation the site will actually use.
- Whether storage or EV charging is planned, because it changes the load picture.
Where this applies
Continue reading
- GuideCommercial solar panel costs in the UK, broken down
- GuideHire purchase or finance lease for energy equipment?
- GuideCapital allowances on solar and battery storage, in plain terms
- Pillar guideBattery storage finance in the UK: the complete guide for commercial projects
FAQs
Common questions
The questions that come up most often on this subject.
Can a business finance commercial solar panels in the UK?
Yes. Commercial solar is routinely funded through asset finance, most often hire purchase over five to seven years, with the installation and electrical works included in the facility alongside the panels and inverters.
How much does a 100 kWp commercial solar system cost?
As an indicative range, £70,000 to £85,000 fully installed on a straightforward roof. Access requirements, roof strengthening and asbestos handling can move that figure significantly, so the survey matters more than the headline rate.
Can solar be financed on a leased building?
Sometimes. Funders want the unexpired lease term to comfortably exceed the finance term and will usually want landlord consent. Where the lease is short, the finance term shortens and the deposit rises, and some cases will not place at all.
Is it better to buy solar outright or finance it?
It depends on what else the cash could do. Financing spreads the cost against the saving the array generates and keeps working capital in the business. Buying outright avoids interest but takes a large sum out of the account for a return that arrives over years.
Does solar finance cover scaffolding and roof works?
Installation costs including scaffolding, mounting systems, cabling and commissioning normally sit inside the facility. Substantial roof repair or replacement is assessed case by case, because it is a building cost rather than an energy asset.