Written by George Sweeney Reviewed by Craig Watson
Sources
30 June 2026
First Published
If your company is looking to reduce overheads, improve energy independence, or meet sustainability targets, investing in solar power for your business is an excellent strategy worth exploring.
Here, we explain how business solar power works, the different types of systems available, the pros and cons of installing panels, and the solar power grants and tax reliefs available for businesses this year and beyond.
How does solar power for businesses work?
A solar power system for a business captures sunlight using photovoltaic (PV) panels and converts it into direct current (DC) electricity. An inverter then converts this into alternating current (AC) electricity, which can be used to power your daily commercial operations.
For a solar powered business, this basically means drawing less energy from the national grid during daylight hours, drastically lowering your electricity bills. Any excess energy your system generates can either be stored in on-site batteries for later use or exported back to the grid for a profit.
Types of business solar power systems
Choosing the right solar power systems for a business premises depends on your available space, roof structure, and energy demands.
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Roof-mounted solar panels: The most common setup if you want solar power for your business. Panels are securely mounted to the roof of your office, factory, or warehouse. They utilise otherwise wasted space and require minimal structural changes.
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Ground-mounted solar: If your business has unused land, ground-mounted systems offer excellent flexibility. They can be perfectly angled toward the sun to maximise generation, making them ideal for farms or large industrial sites.
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Solar carports: A dual-purpose solution where solar panels are installed as canopies over your company car park. They generate solar power for your business while protecting employee and customer vehicles from the weather.
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Solar with battery storage: Adding a commercial battery system lets you store excess solar energy generated during the day, so you can continue powering your premises in the evening or during peak pricing periods using stored energy.
Pros and cons of business solar power
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Pros |
Cons |
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Lower energy bills: Generates free electricity, cutting your reliance on the national grid. |
Initial investment: The upfront capital required for commercial installation can be significant. |
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Energy security: Allows you to be more self-sufficient, protecting your business against wholesale electricity price fluctuations. |
Weather dependent: Energy generation is naturally lower when there is less sunlight. |
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Revenue generation: You can sell excess power back to the national grid. |
Space requirements: Needs a large, structurally sound roof or area of land. |
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Carbon reduction: Drastically lowers your corporate carbon footprint and helps you meet sustainability targets. |
Maintenance: Requires periodic cleaning and occasional inverter replacements. |
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Grants and reliefs: Available government schemes and tax supports help reduce initial setup costs or friction. |
Expert support: Involves expert structural, electrical, and data analysis to design an optimal business solar power system. |
How an energy adviser can help
Installing commercial solar panel infrastructure can be a significant investment, and selecting the right setup isn't always straightforward.
Many businesses choose to work with an experienced energy adviser who can dial in on the data to ensure you get the best return on the investment. Here’s how an adviser can help with your business's solar power needs:
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Evaluate usage: Producing a detailed breakdown of your business energy consumption.
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Calculate savings: Identifying how much your company could potentially save with solar panels.
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Tailored recommendation: Providing personalised recommendations on the specific types of panels and solar system to install.
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Efficiency advice: Recommending other types of renewable energy technologies to maximise energy efficiency.
Because every business uses energy differently, bespoke advice ensures you choose the right solution rather than a one-size-fits-all approach.
If you’d like to discuss solar power options for your business with an expert adviser, you can arrange a free, no obligation initial consultation below.
Get 100% independent energy advice
Alternative ways to make your business more energy efficient
While installing solar capabilities for your business is highly effective, it’s often best combined with other energy-efficiency measures to build a comprehensive, long-term energy strategy:
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Smart meter monitoring: Installing advanced technology, such as a smart or half-hourly meter, to track your consumption patterns in real time can eliminate estimated billing and uncover hidden operational waste.
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Commercial heat pumps: Transitioning from traditional gas or oil boilers to air- or ground-source heat pump system that runs efficiently on electricity, allowing you to heat your premises using your own solar power.
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Business energy audit: Conducting a thorough visual or virtual energy assessment of your entire premises to evaluate insulation quality, lighting efficiency, HVAC performance, and structural heat loss, providing clear steps to lower your usage.
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Net Zero consultation: Working with an expert to formally calculate your current greenhouse gas emissions, evaluate your environmental impact, and build a tailored roadmap to achieve sustainability or ESG targets.
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Green energy tariffs: A simple step toward sustainability involves switching to a green energy tariffs which guarantees that your consumption is sourced in an environmentally friendly manner (or methods are used to offset your usage).
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Review your energy contracts: Carrying out a bill validation helps ensure your business is connected to the right utility setup and on a competitive commercial tariff rather than an expensive deemed or variable rate.
Solar power grants for businesses and other supports
Securing the right funding, grants, or tax relief can drastically reduce the time it takes to see a return on your solar energy business investment.
While there’s no single, universal government grant for businesses using solar power in the UK, there is a useful range of schemes and strategies to consider:
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Annual Investment Allowance (AIA): For most SME installations, this is the most valuable relief. It allows you to deduct 100% of the cost of your solar installation (up to £1 million) from your taxable profits in the year of purchase.
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Smart Export Guarantee (SEG): This scheme obligates larger UK energy suppliers to pay you a set rate for every kWh of surplus renewable electricity your business exports back to the grid.
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Government grants: Depending on your sector and location, you may qualify for specific government grants for solar power business adoption. For example, the Industrial Energy Transformation Fund (IETF) supports energy-intensive industries, and funding may also be available from Local Enterprise Partnerships (LEPs).
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Regional schemes: Certain regions offer incentives, such as Business Energy Scotland, which provides specialised small business grants (up to £30,000 cashback for non-solar improvements) and interest-free loans of up to £100,000.
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Business rates exemption: In England, eligible renewable energy installations (including solar for on-site generation) may qualify for a business rates exemption until 31 March 2035.
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0% VAT relief: While standard commercial installations incur 20% VAT, VAT-registered businesses can normally reclaim it. Also, certain eligible works may qualify for the temporary 0% VAT rate on energy-saving materials until March 2027.
Get independent renewable energy advice today
Transitioning to renewable energy with solar panels for your business is one of the smartest long-term investments your company can make.
Here’s why businesses across the UK looking to use solar power use Money Helpdesk to explore renewable energy solutions:
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Access to experienced commercial energy advisers
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Support selecting the right solar system and installation
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Guidance on securing solar power business grants and tax relief
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Free initial chat with no obligation to proceed further
If you’d like to explore your options and find out how much you could save with business solar power, you can get started here.
FAQs
Yes, absolutely. Solar installations are highly scalable. Whether you need a small roof-mounted array for a local shop or a massive system for an industrial warehouse, there are solar power systems for business operations of all sizes.
The primary benefit is a significant reduction in your monthly utility costs, helping protect your cash flow from volatile energy markets.
Additionally, generating your own clean energy significantly reduces your carbon footprint, supporting broader ESG (Environmental, Social, and Governance) targets and appealing to eco-conscious consumers.
While direct solar power business grants are usually localised or sector-specific (such as agricultural or high-energy manufacturing grants), almost all UK businesses can utilise the Annual Investment Allowance (AIA) for 100% first-year tax relief, alongside the Smart Export Guarantee (SEG) to earn money from surplus power.
In many cases, roof-mounted commercial solar panels fall under “permitted development” and don’t require full planning permission.
However, if your building is listed, located in a conservation area, or if you are installing a large ground-mounted system, you’ll likely need to seek approval from your local authority.