The Commercial Solar Surge: Why More Businesses Are Investing in Solar Now

The UK commercial solar market isn’t emerging. It’s accelerating – and quickly. This blog looks at the data behind the surge in solar commercial installations, and the key factors driving more UK businesses to invest in solar – giving you the context and confidence you need if you’re weighing up commercial solar for your business.

In this article:
The proof: commercial solar is scaling fast in the UK
What this growth tell us
What’s driving growth in commercial solar?
What early adopters are already seeing
What this means for UK businesses now

The UK commercial solar market isn’t emerging. It’s accelerating – and quickly.

Installed capacity reached 15.9GW by the end of 2024 and is projected to exceed 20GW by 2026. Market growth is just as strong. It expanded by 50% in 2025 and is expected to grow at a similar rate again in 2026, making it one of the fastest-growing segments of the UK’s energy system.1

This growth reflects a broader shift in how businesses are thinking about energy. What was once a niche, subsidy-driven technology has become a mainstream commercial investment, underpinned by improved technology and falling costs, rising energy prices, and clearer policy direction. 

This blog looks at the data behind the surge in solar commercial installations, and the key factors driving more UK businesses to invest in solar – giving you the context and confidence you need if you’re weighing up commercial solar for your business.

The proof: commercial solar is scaling fast in the UK
The numbers behind the UK solar market tell a clear story. 

The market expanded by 50% in 2025, adding around 3.5GW of new capacity and taking total installed capacity past 23GW. Forecasts suggest the market will grow by a further 50% in 2026, with between 5 and 5.5GW of new capacity added, making it the strongest year on record.2

That growth sits on an already solid foundation. The UK reached 15.9GW of installed solar capacity by the end of 2024, with projections pointing to over 20GW by 2026 as project pipelines continue to build.1

Looking further ahead, the direction of travel is just as clear. The UK government has set a target of 70GW of solar capacity by 2035, while the market itself is forecast to grow at a compound annual rate of 9.3% through to 2031.

Even the make-up of the market is evolving. Ground-mounted solar is expanding quickly, increasing its share from 60% of total capacity in 2024 to 70% in 2025. Rooftop installations, both residential and commercial, continue to play a significant role alongside that growth.2

Taken together, these figures point to a market that’s not just growing, but scaling at pace.

What this growth tells us
Markets don’t grow like this without a clear commercial case. It reflects real confidence in the market - from investors, developers and businesses alike.

It shows that solar is no longer a niche or experimental choice. It’s being adopted more widely as a practical way to manage energy costs and reduce exposure to volatility.

For many businesses, it’s becoming a standard part of long-term energy planning.

What’s driving growth in commercial solar?
Why are more businesses investing in solar? There are a number of factors, but they all point to the same thing: solar is making more commercial sense for more businesses.

Energy costs are high and hard to control
For most businesses, the driver is straightforward: energy costs are rising, and they’re increasingly unpredictable.

Grid electricity prices continue to sit between 20p and 35p per kWh, while non-commodity charges are climbing and expected to account for a significant proportion of total bills. Read more in our blog ‘Rising TNUoS charges: what UK businesses need to know about electricity network costs.’

After the volatility seen in 2021 and 2022, many organisations are now looking for ways to take back some control over their energy costs.

A more exposed and less predictable energy system
Part of the reason energy costs remain volatile is the changing shape of the UK’s energy system.

Domestic energy production has declined significantly over the past two decades. North Sea gas output has fallen sharply, and the UK’s last coal power station closed in 2024. As a result, the UK is more reliant on imported energy, leaving businesses more exposed to global price movements.

We’ve seen that sensitivity again more recently, with tensions in the Middle East putting pressure on global energy markets and reinforcing how quickly prices can shift.

That exposure was already clear during the price spikes of 2021 and 2022. For many organisations, it highlighted how little control they have over energy costs - and why reducing reliance on the grid is becoming more important.

Solar is no longer capital intensive to implement
One of the biggest barriers to solar has historically been upfront cost. That’s changed.

Today, businesses can access solar through a range of funding models, including asset finance, leasing and PPAs, many of which require little or no upfront investment.

This shift is opening the market up. Businesses that may have previously ruled out solar on cost grounds can now benefit from it without tying up capital.

Better technology, stronger performance
Another factor behind the growth in the market is that the technology has improved significantly in recent years costs have come down.

Panels are now more efficient and durable, delivering more output from the same space. Globally, the cost of solar panels has fallen by as much as 90% over the past decade, with module prices now below $0.20 per watt.3 As a result, solar is now one of the most cost-effective forms of new electricity generation for many businesses.

Battery storage has also become a more central part of system design, allowing businesses to store energy and use it when it’s most valuable.

Monitoring has moved on too. Systems can now track performance in real time, identify issues early, and provide clear data on energy generation and savings.

Taken together, these improvements are making solar more reliable, more predictable and easier to manage as part of day-to-day operations.

Government policy is accelerating the shift
The growth of commercial solar isn’t happening in isolation. It’s being actively supported by a clear and long-term policy direction.

The UK government has set ambitious targets for solar deployment, with a roadmap to significantly increase capacity by 2030 and beyond. That includes measures to streamline planning, expand funding mechanisms and accelerate project delivery across the country.

The government’s Clean Growth Strategy positions solar as a key technology in delivering net zero, while supporting innovation in areas like battery storage and integrated energy systems. A clear policy framework gives developers, investors and businesses the confidence to act, knowing that solar will remain a central part of the UK’s energy system for decades to come.

For commercial organisations, this signals a stable, supported market, where investment in solar is aligned not just with today’s economics, but with the long-term direction of UK energy policy.

What early adopters are already seeing
For businesses that have already invested, the benefits are clear - and measurable.

A typical commercial system can deliver tens of thousands of pounds in annual energy savings, with payback periods often within five to eight years. With systems designed to last 25 years or more, that leaves a long window of reduced energy costs.

For businesses with strong daytime demand, the benefits are even greater, with high levels of self-consumption and reduced reliance on the grid.

What this means for UK businesses now
Commercial solar is no longer a niche or emerging technology. It’s a growing, established part of the UK’s energy landscape, supported by strong market growth, improving technology, and a clear policy direction.

That signals that solar is no longer a speculative investment. It’s a practical way to reduce energy costs, manage risk and take greater control over long-term energy spend.

The market is already moving in that direction. The question for most organisations is how, and when, they choose to respond.

See how much your business could save with solar
Plug me in has been delivering commercial solar since 2011, growing with the market and supporting organisations across the UK to cut energy costs. 

Get in touch today. Complete our enquiry form and we’ll be in touch to devise a customised quote based on your project size, location and energy needs. 

Source reference
1 https://ecoaim.co.uk/commercial-solar-adoption-statistics-in-the-uk-key-trends-and-insights/
2 https://www.solarpowerportal.co.uk/solar-projects/uk-solar-forecast-to-grow-50-yoy-again-in-2026
3 https://www.greenmatch.co.uk/blog/decrease-in-solar-costs

Suggested further reading
Blog - Rising TNUoS charges: what UK businesses need to know about electricity network costs.
Blog - How the Middle East Conflict is Driving UK Energy Prices - And What it Means for Businesses
Blog - From Production Lines to Profit Lines: How Solar Powers Smarter Manufacturing