Commercial Solar for UK Businesses

Commercial solar is becoming an increasingly important part of how UK businesses manage their energy costs, reduce carbon emissions and build greater resilience into their operations.

 

Across the UK, more businesses are investing in solar PV to generate their own electricity rather than relying entirely on power from the grid. Rising and unpredictable energy costs, growing sustainability commitments and advances in solar and battery technology are all changing the way businesses think about energy.

 

For businesses with suitable roof space, land or other available areas, solar PV can turn previously unused space into a source of renewable electricity. And when solar is combined with battery storage, businesses can store surplus generation and use it when they need it, helping them make more of the energy their system produces.

 

But the growing popularity of commercial solar doesn't necessarily mean that every business needs the same solution.

 

The right system will depend on how much electricity your business uses, when you use it, the space available for solar panels, the condition of your roof or site, your existing electrical infrastructure and your wider energy objectives.

 

So, how do you know whether commercial solar is right for your business?

 

This guide explores the commercial solar market in the UK, why businesses are investing, how commercial solar PV works, what it costs and how battery storage, financing and ongoing maintenance can form part of a complete energy solution.

 

We'll cover:

• Why more UK businesses are investing in commercial solar

• How commercial solar PV works

• The benefits of solar panels for businesses

• How much commercial solar costs

• What affects the cost of a commercial solar installation

• How much solar your business might need

• How battery storage can work alongside solar PV

• Commercial solar financing and Power Purchase Agreements

• What happens to surplus solar generation

• Which businesses and sectors can benefit from solar

• How commercial solar is installed and maintained

Ofgem's latest research into businesses found that 27% of businesses surveyed reported struggling with their energy bills in some way during 2025. The same research found that cost remained the most commonly reported barrier to decarbonisation, although the proportion citing cost had fallen to 15%, compared with 21% in 2024 and 32% in 2023.

 

Solar PV offers businesses another option: generating a proportion of their electricity onsite.

 

Instead of purchasing all of their electricity from the grid, businesses with suitable premises can use solar panels to generate renewable electricity during daylight hours. That electricity can then be used directly by the business, stored in a battery for later use or, where appropriate, exported to the grid.

The UK solar market is scaling rapidly

The scale of the wider UK solar market helps put the commercial opportunity into context.

 

By the end of 2025, the UK had 21.6GW of installed solar capacity, an increase of 2.6GW, or 13.6%, during 2025. Around 262,000 solar installations came online during the year, the highest annual total recorded to date according to IEA-PVPS data based on UK deployment statistics.

 

Rooftop solar is an important part of that growth. Government figures show that 269,000 solar installations were completed in 2025, the highest annual total recorded at the time, with around 255,000 being rooftop installations on homes, businesses and other buildings.

 

The commercial market is harder to measure separately because larger commercial-scale installations are not all captured by the same certification schemes used to track smaller systems. However, the broader direction is clear: solar deployment is accelerating across the UK, while government policy continues to support significant additional capacity.

 

The government's Clean Power 2030 Action Plan sets a 45–47GW solar capacity range for 2030, compared with 16.6GW of installed capacity in the baseline year used in the plan. The government has also previously set an ambition of up to 70GW of solar capacity by 2035.

 

For businesses, this matters because solar is becoming an increasingly established part of the UK's energy infrastructure rather than a niche technology.

Rising energy costs are changing the business case

For the vast majority of businesses, electricity is an unavoidable operating cost.

 

The precise price a business pays depends on its contract, consumption profile, size and tariff, but the underlying issue remains the same. Every unit of electricity generated and used onsite is a unit that does not need to be purchased from the grid at the prevailing import price.

 

Energy prices have also remained volatile compared with the period before the 2021-22 energy crisis, with the price cap rising by 13% in July 2026.

 

For context, Ofgem's household price cap reached 26.11p per kWh for electricity between July and September 2026, before increasing slightly to 26.32p/kWh for the October-December period. The price cap does not apply to most business energy contracts, but it illustrates the continuing scale of electricity costs in the wider UK market.

 

For businesses, the more important question is therefore not simply what electricity costs today, but how much electricity they expect to consume over the lifetime of a solar system and how much of that demand could potentially be met through onsite generation.

 

Here’s more on why solar is a smart choice for businesses amid rising energy prices.

Businesses are looking for greater control over their energy

The energy crisis highlighted how exposed businesses can be to factors outside their direct control.

 

Wholesale energy markets, network charges, international events and changes in supply can all affect the cost of electricity. Businesses cannot control those factors, but they can make decisions about how much energy they purchase and where that energy comes from.

 

Generating electricity onsite gives businesses another source of power.

 

Solar will not normally eliminate a business's reliance on the grid. Most commercial premises will still need grid electricity when solar generation is unavailable or insufficient. However, generating some electricity onsite can reduce grid imports and give businesses greater visibility and control over part of their energy consumption.

 

Battery storage can extend that flexibility further.

 

Instead of using solar generation only when it is produced, a battery can store surplus electricity and make it available later. This can be particularly useful where a business generates significant solar energy during the day but continues to consume electricity into the evening.

 

The biggest opportunity therefore is for businesses which are looking at solar PV, battery storage and energy management as part of a wider energy strategy.

Sustainability is becoming a business priority

Cost is not the only reason businesses are considering solar.

 

Ofgem's 2025 research found that 41% of businesses reported that they faced no barriers to reducing their carbon emissions, up from 27% in 2024 and 24% in 2023. Among businesses that did identify barriers, cost was the most common at 15%.

 

For many organisations, reducing emissions is becoming part of broader business objectives around sustainability, procurement, reporting and long-term resilience.

 

Generating renewable electricity onsite can contribute to those objectives by reducing the amount of electricity a business needs to purchase from the grid and providing measurable data on renewable energy generation.

 

This can be particularly relevant for businesses with sustainability commitments or customers and supply chains that increasingly expect evidence of environmental progress.

Solar technology is becoming more capable

The technology behind commercial solar has also changed significantly.

 

Modern solar PV systems can generate substantial amounts of electricity from commercial rooftops and other suitable sites, while improvements in system design, monitoring and battery storage give businesses more options for managing the electricity they generate.

 

Battery storage is particularly important because solar generation and electricity demand do not always occur at the same time.

 

A business may generate more electricity than it needs during a sunny afternoon, for example, while continuing to consume electricity later in the day. A battery can provide a way of shifting some of that generation to a later period.

 

Monitoring technology also allows system performance to be tracked over time. A well-designed commercial energy system can combine solar PV, battery storage, monitoring and energy management around the specific requirements of the business.

 

You can find out more about the commercial solar surge in our recent article.

Commercial solar refers to solar PV systems designed to generate electricity for businesses and other organisations.

 

Systems can range from smaller installations on offices, retail premises and commercial buildings through to much larger systems covering warehouses, factories, agricultural buildings, leisure facilities and other large sites.

 

Solar panels essentially work by converting sunlight into electricity, which can then be used by the business immediately, stored in a battery or potentially exported to the grid.

 

Beyond simply covering a roof with solar panels, the system needs to be designed around the building, the business's electricity demand and the way energy is used throughout the day.

 

That means assessing factors such as:

 

• How much electricity the business uses

• When electricity is consumed

• How much suitable roof or ground space is available

• The orientation and condition of the roof

• Shading and other site constraints

• Existing electrical infrastructure

• Grid connection requirements

• Whether battery storage would add value

• How much solar electricity can be consumed onsite

• Whether surplus generation could be exported

• The preferred approach to financing the project

As we’ve covered above, at its simplest, a commercial solar PV system converts sunlight into electricity that can be used by the business.

 

During daylight hours, the solar panels generate electricity. That electricity can be consumed onsite first, reducing the amount of power the business needs to purchase from the grid.

 

Where generation exceeds immediate demand, the surplus may be stored in a battery or exported to the grid, subject to the site's system design and applicable arrangements.

 

This creates several potential routes for the electricity generated by a commercial solar system:

 

Solar generation > direct business consumption > battery storage > grid export

 

The value of each route depends on the business's energy profile and the commercial arrangements in place.

 

This is why understanding your consumption profile is one of the most important stages when it comes to designing a commercial solar installation.

 

A business that consumes large amounts of electricity during daylight hours may be able to use a significant proportion of its solar generation directly. A business with lower daytime demand may need to consider storage, export or a different system size.

For businesses, commercial solar can offer several potential benefits:

Reduce reliance on the grid

Every unit of solar electricity that is generated and used onsite can reduce the amount of electricity the business needs to purchase from the grid, which can protect you from unexpected energy price spikes.

Improve energy resilience

Combining solar with battery storage can give businesses greater flexibility over when they use the electricity they generate.

Support sustainability objectives

Solar generation can contribute to emissions-reduction strategies and provide measurable data on renewable energy generation.

Make better use of available space

Large commercial roofs, warehouses, factories and other suitable sites can provide significant areas for solar generation.

Create a long-term energy asset

A properly designed and maintained solar PV system can operate for decades, meaning the investment needs to be considered over the long-term rather than simply against the first year's energy bill. At Plug me in, each system we design, install and maintain is built to maximise energy generation for 25+ years.

 

That brings us to one of the most common questions businesses ask before considering an installation:

There is no set price for a commercial solar PV system - installation for a small office building with roof space for ten panels will undoubtedly cost less than a large agricultural site, and the amount of energy required by each of these businesses will also greatly differ.

 

These are the key factors that tend to impact the cost of commercial solar:

• The size and capacity of the solar PV system

• The number and type of solar panels required

• Roof type, condition and accessibility

• The complexity of the installation

• Inverter and electrical equipment requirements

• Scaffolding and access requirements

• Grid connection requirements

• Monitoring and energy management systems

• Battery storage, if required

• Groundworks for ground-mounted systems

• Planning or other project-specific requirements

• The financing structure used to fund the installation

Here’s why each of these elements impact the total cost of your system…

What affects the cost of commercial solar?

The size of the system is one of the most obvious factors.

 

A larger system generally requires more panels, mounting equipment, inverters and electrical infrastructure. However, the relationship between system size and total project cost is not always straightforward.

 

Installation conditions can have a significant impact too.

 

A large, accessible warehouse roof may be relatively straightforward to work on, whereas a smaller or more complex building could require additional access equipment, structural assessment or electrical work.

 

The existing electrical infrastructure also needs to be considered. A commercial solar system needs to integrate safely with the site's electrical installation, and larger projects may require additional work or a grid connection assessment.

 

Battery storage is another major consideration.

 

Adding a battery increases the upfront investment but can allow a business to store surplus solar generation and use it at another time. Whether that creates sufficient additional value depends on the business's consumption profile, electricity tariff, solar generation and intended use of the battery.

What is the payback period for commercial solar?

The payback period is the amount of time it takes for the financial benefits generated by a solar installation to recover the initial investment.

 

For commercial solar, payback can be affected by several variables, including:

 

• The total installation cost

• Electricity prices

• Annual solar generation

• The proportion of solar electricity used onsite

• Export arrangements for surplus electricity

• The business's operating hours

• System degradation over time

• Maintenance costs

• Financing costs

• Battery storage and how it is used

 

For example, a business that operates throughout the day may be able to consume a large proportion of its solar generation directly. A business with limited daytime demand may have a different financial profile because more of its generation could occur when the building is using less electricity.

 

This means it is difficult to give a meaningful universal payback period, but on average, a well-installed solar PV system pays for itself in six years.

 

The same principle applies to battery storage. A battery may have a different financial value depending on when the business consumes electricity and how the battery is operated.

 

If you’re considering investing in solar and would like more guidance around potential payback periods based on your business’s actual energy use and system requirements, our expert team can help. Tell us more about your business and we’ll be in touch to advise.

 

How much can a business save with solar?

 

Solar can reduce the amount of electricity a business needs to purchase from the grid, but the saving depends on how much electricity the system generates and how much of that electricity the business uses.

 

For example, a business with significant daytime electricity demand may be able to use much of its solar generation directly. This can make onsite solar consumption an important part of the financial case.

 

A professional commercial solar assessment will consider the relationship between solar generation and your business’s electricity demand to estimate potential savings.

 

Typically, our clients find that solar cuts energy bills by 10-30%.

Commercial solar finance options

Businesses don't necessarily have to fund a solar installation entirely through an upfront capital investment.

 

Depending on whether you meet the eligibility criteria, funding options for solar can include:

 

• Power Purchase Agreements (PPAs): With a PPA, Plug Me In funds, installs and manages your solar system, while you purchase the energy it generates at an agreed rate - typically below the cost of buying equivalent electricity from the grid.

• Subscription options: Access solar and battery technology without the need for a large upfront investment with subscription models that allow you to protect cash flow while benefiting from lower energy costs.

• Lease options: With a lease, the system is funded and installed for you in return for regular payments over an agreed term. Ownership options may be available at the end of the agreement.

The appropriate option will depend on factors such as the business's available capital, accounting and financing requirements, appetite for upfront expenditure and preferred approach to owning the system.

 

With a PPA, for example, a third party can finance and own the solar installation while the business agrees to purchase the electricity generated under the terms of the agreement.

 

This can provide an alternative to purchasing the system outright, although the commercial terms and long-term implications need to be assessed carefully.