Commercial Solar PV is a sustainability investment that can see many benefits for your business. Every year, more businesses choose to invest in commercial solar PV to reduce their carbon footprint and electricity bills whilst gaining energy security.

This guide covers everything you need to know about commercial solar PV for your business; from the price of install to funding options, suitability of workplaces to sustainability compliance.

If you are unsure if solar panels are right for your business, we discuss the benefits each industry sees from solar energy as well as guidance on where you can get the best equipment and installers to ensure you have an easy process making your business more sustainable.

Is Commercial Solar Worth It?

Are commercial solar panels worth it? This is the question a lot of businesses are asking, however many businesses may feel this is unachievable due to the cost of installation, roof suitability or confusion about the financial returns.

Cost of Installing Solar Panels

The cost of installing solar panels is dependent on a few factors:

• Roof or land size
• The suitability of the roof or land
• The number of solar panels required
• The quality of the system components

The ideal system for your business will depend on your monthly energy bills, your energy usage and how much you are charged per kilowatt (kW).

For a small 50kW system to be installed, the price varies between £40,000-£60,000. For a bigger system of 500kW to be installed, this can cost between £350,000-£525,000. The larger the system required, the higher the cost of installation. There are also other considerations that can affect the cost, such as necessary roof improvements, essential site groundworks or infrastructure upgrades.

Solar Panel Finance Options

Solar panels can be an expensive investment and, due to this, many may feel it is unattainable for their business.

However, there are multiple finance options available to businesses to help achieve sustainability and save money on energy bills.

Power Purchase Agreement

A Solar Power Purchase Agreement (PPA) is one of the most cost-effective ways for UK businesses to install commercial solar panels without the upfront cost.

With a PPA, the developer will assess your site to determine the suitability for a solar system. If approved, they will either finance the project directly or through a third-party fund.

They have ownership of the system for the duration of the PPA and take responsibility for maintenance, insurance and any performance risks. In return, you can purchase the energy generated at a significantly cheaper price than standard grid rates.

However, if you don’t feel this is the right approach for your business there are other options to choose from.

Asset Finance

Asset finance offers flexible payment options which can be tailored to your business to allow for the gradual repayment of the solar panels.

There are multiple different types of asset finance your business could consider. A few of these include:

• Hire purchase – Paying a deposit, making regular payments and then gaining full ownership once the full amount owed is paid.
• Finance leases – You rent the equipment from the lender for an agreed price and keep up maintenance and care. You don’t own the equipment, but you can keep renting it or sell it to the lender.
• Asset refinancing – You use equipment you already own as security to borrow money.

Please note: Finance structures are subject to status and contract. Noble Green Energy is not FCA regulated and does not provide financial advice. The information in this guide is general in nature and does not constitute financial, tax or legal advice. Businesses should seek independent professional advice before making an investment decision.

How Soon Can I Pay Back My Solar Panels?

Does commercial solar save money? Well-suited commercial solar projects can achieve payback periods of around 3-4 years and annual ROI of 25-35%, although actual returns vary depending on installation costs, electricity prices, consumption profile and system performance.

Energy price volatility in recent years has strengthened the financial case for businesses generating more of their own electricity. As a result of this, businesses are seeing greater savings on their energy, compared to grid costs, so payback on solar panels is now much faster than it used to be.

In addition to this, as the demand for solar panels increases, the cost of producing them has decreased as Wright’s Law takes effect. The doubling of production means the manufacturing costs will reduce by 20%.

The efficiency of solar panels has also increased. As technology continues to progress, more energy can be generated from the same size panels, which reduces the cost per kWp for businesses.

Depending on electricity consumption, surplus solar energy could be exported to the grid, typically generating around 6-8p per kWh*. However, exporting electricity can increase the return-on-investment period compared to using the energy on site, as each kWh consumed by the business could avoid around 20p in grid electricity costs, compared with earning around 6-8p per kWh when exported.
(*Average cost at time of publishing.)

Battery storage can also provide an option for businesses that regularly generate surplus electricity, allowing some of that energy to be stored for later use rather than immediately exported.

There are multiple ways solar panels pay themselves back; these are just a few examples and the benefits it can have for your business.

Government Incentives, Export Schemes & Tax Relief

The UK government provides a variety of grants and tax incentives for businesses looking to invest in solar energy, depending on business size, location, energy use and sector.

Some of the grants or incentives that may be available to your business include:

Capital Allowances

The Annual Investment Allowance (AIA) allows eligible businesses to claim 100% tax relief on qualifying plant and machinery expenditure, up to the applicable £1 million annual limit. Solar PV expenditure may qualify, depending on the circumstances.

Tax treatment depends on individual circumstances and may change. Businesses should confirm the position with their own accountant or tax adviser before relying on any allowance.

Smart Export Guarantee (SEG)

The Smart Export Guarantee (SEG) allows eligible businesses to receive payment for unused renewable electricity exported to the grid.

When you have installed solar PV panels with a capacity up to 5MW, the SEG guarantees you are paid for each kWh you export. This is typically between £0.03-0.05 per kWh (rates are different depending on the supplier).

Import & Export Contracts

It is also worth considering import and export contracts. Having these contracts in place can help you maximise the benefits from your commercial solar panels.

Import Contracts

You may want an import contract in place if your solar panels don’t generate enough energy for your business and you are still purchasing energy from the grid.

It’s worth investigating an import contract with your current supplier and you may need to inform them that your business is planning on installing solar panels.

This is because some supplier contracts include a minimum consumption commitment. Depending on the amount of energy you generate and require, there is potential you wouldn’t meet this requirement if you are using solar panels.

Failing to meet the minimum consumption limit can result in additional charges.

Export Contracts

Should your solar panels produce more electricity than you need, you may wish to explore an export contract for your business where you can sell surplus energy back to the grid.

Export rates can vary between energy suppliers, so it’s advisable to shop around before agreeing to an export contract. One supplier may be prepared to pay more per kWh than another.

Also evaluate the length of the export contract you are signing up to. You may commit to a 5-year contract and be locked in even if the price per kWh increases after a year or two. The result would be losing out on potential profit your energy could have generated.

For your business to have an export contract, you will need a meter capable of measuring export in half-hourly intervals. In many cases, this will be a suitable smart/half-hourly meter that records electricity flowing in both directions, rather than necessarily a completely separate physical meter. This is to prove how much electricity you are exporting and so your energy supplier can calculate how much you are owed.

Having these contracts in place allows you to get the most out of your solar panels, maximise financial benefits and support the grid.

Private-Wire / Direct-Wire Solar

Private-wire, sometimes referred to as direct-wire solar, allows renewable electricity generated at one location to be supplied directly to another nearby business or property through a dedicated electrical connection. This can be particularly useful where a business has suitable land or roof space for solar generation but the electricity demand is located on a neighbouring site.

By supplying renewable electricity directly rather than relying solely on the public grid, private-wire arrangements can help businesses make better use of locally generated solar energy, reduce exposure to grid electricity costs and support long-term sustainability goals.

The suitability of a private-wire arrangement will depend on factors including site ownership, distance, electricity demand, infrastructure and the commercial and legal arrangements between the parties.

How Much Can You Export From Solar Panels?

The amount of energy your solar panel system makes and how much your business requires will depend on the amount of unused energy you have left to be able to export.

A general 100kWp solar panel system generates around 95,000kWh per year on average. For some businesses, this will be enough and they will be able to export the extra energy. For other businesses, this may not be enough and therefore wouldn’t have any energy to export.

For more specific power output from your solar PV system, it is best to talk to the supplier you intend to purchase from.

Is Your Business Suitable for Solar Panels? 

Should my business install solar panels? You may be considering whether solar panels are suitable for your business. Whether your business is a warehouse, a manufacturing facility, a farm or you own some spare land, certain criteria need to be met to determine if your business is suitable for solar panels.

Warehouses and manufacturing facilities are typically good places for a solar installation because of the larger roof spaces; they are also less likely to be obstructed by other buildings for better sunlight exposure.

If you are aiming to put solar panels on your warehouse roof or manufacturing facility, you will need to consider:

• Size – In theory, the more space available, the more solar panels can be installed (subject to structural surveys). However, if the roof has obstructions such as vents, skylights or AC units, this will limit the useable area.
• Condition – Your roof needs to be structurally sound, so any signs of ageing or underlying issues such as leaks or rust would need to be fixed before solar panels could be installed.
• Orientation – The ideal roof orientation is typically south-facing, as this generally provides the greatest annual solar exposure. The pitch for solar panels should be between 10- 50 degrees, but solar panels can work on flat roofs as well, as they are often mounted on angled frames.

Alternatively, if your business has spare or underutilised land, you could consider turning it into a solar farm.

The size of land available will determine the number of solar panels your business can install. As a general guide, a ground-mounted solar installation requires between 4 and 6 acres of land per MWp of installed capacity, depending on site layout, topography and row spacing.  The largest solar farm in the UK consists of 180,000 solar panels.

Arable land can be used for commercial solar panels, however there are Planning Practice Guidance considerations that must be followed:

• The proposed land is of poorer quality in preference to higher quality land. Agricultural land is classified from Grade 1 (excellent) to Grade 5 (very poor), with Grades 1, 2 and 3a defined as Best and Most Versatile (BMV) land. Planning policy directs solar development away from BMV land where possible, so schemes on Grade 3b and below are generally viewed more favourably.
• The land also needs to allow for continued agricultural use (such as agrivoltaics) and/or encourage biodiversity improvements.

Research Before You Invest

Before investing in commercial solar PV, understanding the benefits you can achieve will help you decide whether this is the right move for your business.

Why UK Businesses Are Investing in Solar Energy

Corporate Carbon Accounting

As the focus on environment policies and carbon footprints become a common topic of conversation, many businesses are looking to reduce their energy consumption.

Carbon accounting is becoming necessary for many business, as it provides a way to report their emissions to meet customer and shareholder expectations.  With initiatives such as the Streamlined Energy and Carbon Reporting (SECR) framework, reporting your emissions has become a necessity.

The understanding of where your emissions are coming from can highlight where improvements can be made through energy use and production. This also places businesses in a better position to prepare for future regulations and make decisions on climate-related risks.

Businesses and companies that demonstrate transparency on the reporting of their carbon footprint are better favoured by stakeholders and consumers.

There are two approaches to Carbon Accounting:

• Spend-based method – This estimates your emissions based on how much you spend on goods or services. It uses standard emission factors that are linked to different expenditure categories.
• Activity-based methods – Emissions are calculated using specific data such as litres of fuel, kWh of electricity or miles driven. This approach is more precise and works better for detail-orientated businesses.

Many businesses use a hybrid approach of the two, initially starting with the spend-based method and then refining accuracy with the activity-based method.

Scope 2 & 3 Emissions

Scope 2

Scope 2 emissions are indirect greenhouse gases generated by the energy your business purchases and uses on site.

This includes:

• Electricity
• Heating
• Cooling
• Steam

Scope 2 data can be collected through electric and heating bills. Data from smart meters can also help you to understand your Scope 2 emissions.

Scope 3

Scope 3 emissions cover all indirect emissions generated throughout the business value chain, that aren’t covered in Scope 2.

Examples of Scope 3 include:

• Purchased goods and services
• Business travel
• Employee commutes
• Waste disposal

Scope 3 is harder to measure, so businesses often start with a materiality check and gradually build more accurate data over time.

Scope 3 emissions can represent a significant proportion of an organisation’s overall carbon footprint. Without Scope 3, businesses don’t have the full picture of their carbon use. Identifying these helps to recognise inefficiencies in the supply chain like reporting requirements, sustainability-conscious investors, partners and clients.

How to Measure Scope 3

There are multiple methods that can be used to measure Scope 3 emissions:

• The Greenhouse Gas Protocol defines 15 categories to identify which emissions are relevant to your business.
• Data can also be collected by analysing the supply chain; make sure to request emissions data from suppliers, where possible, to understand where emissions are produced.
• By conducting a Life Cycle Assessment (LCA), you can gain an understanding of where emissions are generated at each stage of a product or service.
• Data management software can be used to track emissions, and where they come from, to identify where improvements can be made.

How to Reduce Scope 3 Emissions

If your business has high Scope 3 emissions, there are steps you can take to reduce this. For example, by using renewable energy such as solar or wind power, improving logistics, requesting supplier ESG disclosures or focusing on operational efficiency.

You should always consider the long-term impact of Scope 3, how this will impact your business, and if you can adjust to increasing environmental legislation to reduce your carbon footprint.

Can Commercial Solar PV Solutions Support BREEAM?

BREEAM is the Building Research Establishment Environmental Assessment Method. A science-based assessment and sustainability certification that assesses a building’s social, environmental and economic performance. Solar PV can support BREEAM requirements for new and existing commercial buildings.

There are 12 categories:

• Management
• Water
• Energy
• Transport
• Health & Wellbeing
• Resources
• Resilience
• Land Use & Ecology
• Pollution
• Materials
• Waste
• Innovation

By having commercial solar PV, this helps achieve credits under the energy category, demonstrating compliance under energy monitoring.

What is the Best Solar PV Module & Inverter?

When considering an investment in commercial solar PV, it can feel overwhelming to pick a supplier and hope they are the right choice for you.

Noble Green Energy works with, and recommends, SolarEdge, a top inverter manufacturer within the UK because of their sustainable components and strong reputation within the industry.

Noble Green Energy also recommends other Tier 1 manufacturers including:

• Solis
• Fronius
• SMA
• GoodWe

Choosing the right manufacturer and inverter is important. The right system and components can help maximise the usable energy generated by your solar panels by minimising losses during conversion.

Noble Green Energy is highly experienced in the design and installation of commercial solar panels. We pride ourselves on finding the right renewable energy solution for your business. Not only can we design, install and monitor your commercial solar PV system, we also provide a full end-to-end service – including consultancy, planning and project management.

Industries That Benefit Most From Commercial Solar

Many sectors of industry can benefit from commercial solar energy, and certain industries more than others.

Agriculture

The agriculture industry sees significant benefits from the use of commercial solar panels. By repurposing unused land or making use of available roof space, farms can generate their own renewable energy.

Solar energy provides a reliable on-site energy source which can be used to help run poultry sheds, grain stores, dairy units or diversification projects, such as retail units or workshops. This can reduce a farm’s reliance on the grid by 30-50% and reduce rising energy bills.

Increasing your farm’s sustainability with commercial solar PV can also make you more attractive to potential buyers that focus on Scope 3 performance.

Summer generation also aligns with peak demand for the farm, so when your energy bills are at their most expensive, your solar panels will be generating the most energy to reduce them.

Factories & Manufacturing

Factories and manufacturing see large benefits by using solar energy to power their production processes. Solar panels allow factories to turn their unused roof space or nearby land into a valuable asset for their business.

By reducing energy costs, this can strengthen the supply chain competitiveness, as products and operations become more cost-effective.

Generating clean energy on-site supports Scope 2 reduction goals and helps businesses meet wider ESG goals – all of which can make the business more attractive than competitors.

Food & Drink

The food and drink industry requires a high-power usage, across the continuous refrigeration, freezing and cooking processes.

Rooftop solar allows businesses to have less dependency on the grid, predictable energy costs and a broader energy strategy.

Operating costs are cut and therefore businesses have lower exposure to variable tariffs and potential price increases.

Warehouse & Distribution

Warehouse and distribution businesses have many ways to maximise the benefits of generating solar energy. Predictable energy costs allow for better informed decisions when planning for the future.

With fuel prices rising and fluctuating, solar energy can also be used to reduce costs. Solar panels can be used to generate electricity for EV chargers, so logistics vehicles can be charged to reduce the need for fuel.

Solar energy provides benefits to a variety of businesses regardless of the industry they operate within. An energy audit on your business can determine how much it can support your overheads and help you plan for the future.

Noble Green Energy also works alongside Building Contractors and Mechanical & Engineering (M&E) contractors across the UK to provide tailored solar PV installations for commercial and industrial buildings – whether existing or new construction.

Solar and Business Energy Use 

Every business and industry requires a different amount of energy. The suitability of solar is determined by each individual site, but can be assessed by typical electricity demand, daytime load profile and space available:

Sector	Typical Electricity Demand	Daytime Load Profile	Roof / Land Availability	Solar Suitability
Food & Beverage Manufacturing	High – continuous refrigeration, cooking, CIP	Strong – largely daytime, high baseload	Large, generally unobstructed	High
Warehousing & Distribution	Moderate – lighting, MHE charging, chillers	Good – shift-dependent	Very large	High
Agriculture (Pig & Poultry)	Moderate to high – ventilation, heating, feed systems	Strong – continuous demand	Multiple shed roofs; land often available	High
General Manufacturing	High – process and compressed air loads	Strong – aligned to production hours	Large	High
Retail & Trade Counter	Lower – lighting, HVAC, refrigeration	Good – trading hours align well	Variable, often obstructed	Moderate
Offices & Professional Services	Lower – lighting, IT, HVAC	Good – core hours align	Limited on multi-storey sites	Moderate

This is because energy requirements vary considerably between industries and individual businesses. Factors such as the size of the facility, operating hours, day-to-day manufacturing patterns and the equipment and processes being used can all have an impact.

There are a few options available to your business to calculate your energy consumption.

Reviewing business utility bills will show how much energy you have used in previous months. Meter readings and sensors can collect more precise data and present which areas of the business use more energy than others.

Alternatively, load profiling examines how your energy demand varies over time. This can be daily, monthly or annually and covers operating cycles, production patterns and seasonal variations to understand periods of peak energy use.

Commercial Solar Requirements

Before choosing to invest in commercial solar, businesses need to evaluate whether their site is suitable, if they need planning permission and any infrastructure improvements.

Do commercial solar panels need planning permission? Full planning permission is not always required for rooftop solar installations, however most projects still require confirmation from the local planning authority that the proposal complies with the Permitted Development Rights.

For Permitted Development Rights, rooftop solar installations on commercial buildings need to meet certain requirements, including:

• The equipment should, so far as practicable, be positioned to minimise its effect on the external appearance of the building and the amenity of the surrounding area.
• Solar equipment installed on a roof must be at least 1 metre from the external edge of the roof.
• On a pitched roof, panels must not protrude more than 0.2 metres beyond the plane of the roof slope. On a flat roof, the highest part of the solar equipment must not be more than 1 metre above the highest part of the roof, excluding chimneys.
• The equipment should be removed as soon as reasonably practicable when it is no longer needed.

Planning permission is generally required for a stand-alone ground-mounted solar installation within the grounds of a non-domestic building where the surface area of the panels exceeds 9 square metres.

For a ground-mounted solar installation to qualify as permitted development, criteria include:

• The surface area of the panels must not exceed 9m², and no dimension of the array, including its housing, can exceed 3m
• No part of the installation can be higher than 4m
• The installation must be at least 5m from the boundary of the property
• It cannot be installed within the curtilage of a listed building or on a scheduled monument
• Additional restrictions apply on designated land, including conservation areas, National Parks, National Landscapes and World Heritage Sites. Prior approval may be required in certain circumstances
• The equipment should, so far as practicable, be positioned to minimise its effect on the amenity of the area and removed as soon as reasonably practicable when no longer needed.

Additional factors such as wildlife, landscape, heritage, highways, agriculture and more may also be considered when going through planning permission. Documents required for planning permission include:

• Planning Statement
• Statement of Community Involvement
• Design and Access Statement
• Landscape and Visual Assessment
• Heritage Assessment
• Archaeology and Visual Assessment
• Archaeology Phase 1 Desktop Report including above ground heritage
• Arboricultural Assessment
• Agricultural Land Classification Report
• Phase 1 Habitat Survey and Preliminary Ecological Appraisal
• Biodiversity Impact Assessment and Net Gain Plan
• Flood Risk Assessment
• Drainage Strategy
• Transport Statement (with reference to the construction phase)

Planning permission may also be required for your solar panels if you have a flat roof. The highest part of the equipment cannot be higher than 1 metre or be within a metre of the edge of the roof.

Listed buildings will require the relevant heritage consent as well as potentially needing planning permission. Conservation areas can also require planning permission, such as ground-mounted systems or those that affect the character of the area before installation.

Whether you are looking to extend a current system or install solar panels for the first time, you will need to ensure the site is ready for engineers to conduct a commercial solar structural survey of the space, structural capacity and potential grid limitation.

How Commercial Solar Works

Commercial Solar Explained 

Running a business can have significant energy demands; whether it is an office or industrial business, you are reliant on the grid for energy.

How does commercial solar work? Commercial solar provides a bespoke solution so your business can benefit from energy security, reduced operation costs and decreased grid reliance, whilst helping you work towards sustainability goals.

Well-suited commercial solar projects can achieve payback periods of around 3-4 years and annual ROI of 25-35%. By utilising unused space you can protect your business from market volatility and support sustainability initiatives.

Solar PV & Battery Storage

Battery energy storage can be integrated with commercial solar PV to give businesses greater control over how and when their generated electricity is used. Instead of exporting surplus solar energy immediately, a battery can store electricity for use later when solar generation is lower or business demand is higher.

This can help increase solar self-consumption, reduce reliance on grid electricity and potentially improve the overall value of the energy generated on site. The right battery capacity will depend on factors including the size of the solar PV system, the business’ electricity consumption and its daily load profile, so battery storage should be assessed as part of the wider energy strategy rather than simply added based on the size of the solar array.

From Survey to Installation 

There are 10 stages to a commercial solar installation process:

1. Consultation, feasibility & site survey
2. Grid connection application (DNO Approval)
3. System Design & Engineering
4. Planning permission (if required)
5. Financial & legal agreements
6. Procurement & scheduling
7. Ground works & structural preparation
8. Installation
9. Testing, commissioning and sign off
10. Operation and maintenance

Once installed and properly maintained, solar panels typically have an operational life of 25-30 years or more. Output gradually declines over time, with the exact degradation rate and warranted performance depending on the manufacturer.

There are two types of warranties available for solar panels:

• Performance warranty – Module warranties vary by manufacturer but some can last for 25 years and guarantee your solar panels will generate at least 80% of their original output at the end of the warranty period.
• Product warranty – This ranges from 12-20 years, depending on the manufacturer, and covers defects with materials or workmanship.

The type of maintenance solar panels require includes panel cleaning, electrical system checks, performance monitoring, physical inspections, preventative care, and repairs and replacements. The maintenance of solar panels is vital to maintain the longevity and efficiency of solar panels.

Noble Green Energy provides consultancy and project management with end-to-end service; by designing, installing and monitoring your commercial solar PV system.

We also provide operation and maintenance packages to ensure your business gains the maximum benefit from your solar energy. This covers remote monitoring, monthly reports, warranty replacements and an annual engineer visit.

Commercial Solar from Noble Green Energy

You should always choose an accredited UK solar PV installer because this can directly impact performance, safety and return on investment. By using an accredited installer, you will have access to planning experts, finance partners, quality assurance, ongoing support, and health and safety compliance.

Choosing an unaccredited installer could cause significant damage to your business should something go wrong. Warranties could be voided, you could be ineligible for government schemes, there could be lack of accountability or they may even go out of business.

Noble Green Energy can show you how to plan a commercial solar project. By choosing us as a trusted solar PV partner for commercial, industrial and agricultural businesses, you can rely on our decades of experience in solar PV with nationwide projects and commitment to help you reach sustainability goals.

We design a solution tailored for your business, installed to the highest quality. With optional operation and maintenance packages available, you can ensure the efficiency of your solar panels for the long term.

We offer an end-to-end service, provide financial security, offer extended warranties and are DNO, G100, RC62 compliant.

We partner with trusted specialists across the solar PV sector to provide clients with a complete suite of options and support them throughout their transition to renewable energy.

Our partners include L&C Utility, Cefetra & Ceferta Ecosystem Services, Lombard Finance, Bluestone Energy and Turley. All are experienced professionals known for quality assurance and technical expertise to provide you with the perfect solution for your business.

Get in touch with us today to discuss your requirements.

Please note: Finance structures are subject to status and contract. Noble Green Energy is not FCA regulated and does not provide financial advice. The information in this guide is general in nature and does not constitute financial, tax or legal advice. Businesses should seek independent professional advice before making an investment decision.