Commercial solar panel electricity

Adopting solar panels for businesses can be a game-changing strategy for reducing energy bills and demonstrating environmental responsibility. But before investing, it’s important to understand the long-term benefits, costs, and suitability for your operations. 

In this guide…

• How commercial solar panels work for UK businesses – Understand how PV panels convert sunlight into usable AC electricity, and the role of inverters and battery storage.
• Key benefits of solar panels for businesses – Explore how solar cuts bills, boosts energy independence, reduces carbon emissions and strengthens your green brand credentials.
• Typical costs, system sizes and payback periods – See example UK system sizes from 10kW to 100kW, with average installation costs and estimated break‑even times.
• Grants, incentives and finance options for solar – Learn about schemes like SEG, ECAs, RHI legacy payments, lease‑purchase deals and Salix Finance support.
• Practical considerations before you install solar – Check what to consider around planning permission, roof space, energy needs, budget and whether solar is right for your site.

What are solar panels, and how do they work? 

Commercial solar panels are made up of photovoltaic (PV) cells crafted from layers of semiconducting material, such as silicon. When sunlight hits these cells, they produce an electric current that powers your business operations. 

• Direct Current (DC) to Alternating Current (AC): Solar panels generate DC electricity, which an inverter converts into AC electricity—used in commercial facilities. 
• Energy generation: On average, commercial solar panels produce 200–350W of power under optimal sunlight conditions. Remarkably, these panels can still generate electricity on cloudy days, which is ideal for commercial solar panels in the UK. 

Battery storage: Maximising solar energy for business 

For businesses seeking a reliable power supply, battery storage is a valuable addition. This system allows you to store surplus energy generated during peak sunlight hours for use after dark or on overcast days. Battery systems enhance the efficiency of your solar power for business by reducing reliance on the grid. 

Solar PV vs. thermal panels: What’s the difference? 

Solar PV panels convert sunlight into electricity, making them suitable for powering equipment and systems in your business. 

Thermal solar panels are designed to capture sunlight to heat water or air, offering a focused solution for energy needs like heating systems. 

Both systems can be installed on commercial rooftops and building facades. 

What are the benefits of solar panels for businesses? 

Cutting your energy bills is the most obvious benefit of installing solar at your business, but there are other plus points too, as outlined below:

1. Lower operational costs 

Fitting solar panels for businesses can take a big chunk out of your electricity spend, and with supplier prices averaging around 25p per kWh, generating your own power can translate into meaningful savings.

2. Enhanced energy independence 

By installing business solar panels, you're relying less on traditional energy providers and protecting your business against future price volatility.

3. Improved environmental impact 

Switching to solar panels for businesses helps cut your carbon footprint, as producing renewable energy on-site reduces demand for power from fossil-fuelled sources.

4. Positive brand image 

With more customers actively seeking out greener companies, using solar power for business can strengthen your reputation and make your brand stand out to eco-conscious buyers.

5. Long-term financial savings 

Although commercial solar panel costs can feel steep at the outset, once you’ve covered the installation, the electricity you generate is effectively free, freeing up cash you can reinvest back into the business. 

What is the cost of commercial solar panels in the UK? 

The price of solar panels for businesses depends on several factors, including system size and energy needs. Here’s an average breakdown:

System size	Average cost	Break-even time
10kW	£13,000 - £15,000	5 - 6 years
20kW	£16,000 - £30,000	4 - 5 years
50kW	£33,000 - £60,000	3 - 6 years
60kW	£39,000 - £75,000	3 - 5 years
80kW	£50,000 - £100,000	3 - 6 years
100kW	£60,000 - £120,000	2 - 5 years

Most solar panel businesses in the UK require between 30,000–50,000 kWh annually. To calculate your needs and potential savings, consult professional solar installers who specialize in commercial applications. 

Are there any incentives and funding options for solar panels? 

Several funding schemes and government incentives can make commercial solar panels more accessible: 

1. Smart Export Guarantee (SEG) 

Under the SEG, businesses can earn money by selling surplus energy back to the grid. Suppliers set their own rates, making it worthwhile to shop around for competitive deals. 

2. Enhanced Capital Allowances (ECA) 

The ECA scheme allows businesses to claim 100% tax relief on energy-efficient technologies, making it easier to invest in solar panels for businesses. 

3. Renewable Heat Incentive (RHI) 

While the RHI program is closed to new applicants, businesses with existing installations can still benefit from quarterly payments based on renewable heat output. 

4. Lease-Purchase Agreements 

These agreements allow businesses to spread the cost of commercial solar panels while earning income from subsidies. Ownership of the system is transferred after the lease is paid off. 

5. Salix Finance 

This government-backed initiative offers interest-free loans for energy efficiency projects in the public sector, including solar panel installation. 

Do you need planning permission for commercial solar panels? 

Most solar panel business installations are considered permitted developments and don’t require planning permission. However, it’s wise to consult local authorities, particularly if your business is located in a conservation area or within a listed building. 

Are solar panels the right investment for your business? 

Investing in solar power for business involves careful planning, but the rewards make it worthwhile. Key factors to consider include: 

• Energy needs: Assess your business’s electricity consumption to determine the size of the solar system required. 
• Space availability: Ensure you have enough roof or ground space for the desired system size. 
• Budget: Explore funding options and incentives to make the investment more affordable. 

Take control of your energy future 

The adoption of commercial solar panels in the UK is growing as businesses recognise the advantages of renewable energy. By choosing solar panels for businesses, companies not only reduce costs but also future-proof their operations against volatile energy prices. 

Solar energy systems deliver consistent, long-term savings while significantly reducing environmental impact. Whether you operate a small enterprise or a large corporation, fitting this technology can position your brand as a leader in sustainability and innovation. 

Solar panels are an investment in both your company’s profitability and environmental responsibility. Partner with trusted solar providers to design and install a system tailored to your needs, and watch your business thrive in a greener, cost-efficient energy landscape. 

And remember, fixing your rates is another way to take control of your business energy bills and beat price volatility. To start an energy comparison, Call Bionic’s business energy experts on 0800 140 4667 or request a callback. 

Solar panels for business FAQs

Still unsure whether solar panels could be a good option for your business? Check out the answers to our most frequently asked questions.

What are commercial solar panels, and how do they work?

Commercial solar panels use photovoltaic (PV) cells to turn sunlight into DC electricity, which an inverter converts into AC power your business can use on site.

Can business solar panels generate power on cloudy days in the UK?

Yes, commercial solar panels still generate electricity on cloudy days, just at lower output than in full sun, which makes them suitable for typical UK weather.

What are the main benefits of solar panels for UK businesses?

Solar panels can cut electricity bills, reduce reliance on the grid, lower your carbon footprint and improve your brand’s environmental reputation.

How much do commercial solar panels cost in the UK?

Typical commercial solar systems range from about £13,000–£15,000 for 10kW up to £60,000–£120,000 for 100kW, with payback periods of roughly 2–6 years.

What size solar panel system does my business need?

Most UK business solar installations are designed to cover annual usage of around 30,000–50,000 kWh, with system sizing based on your bills and roof or ground space.

Are there government incentives for business solar panels?

Yes, businesses can benefit from Smart Export Guarantee payments, tax relief via Enhanced Capital Allowances, legacy RHI income, lease‑purchase options and schemes like Salix Finance.

Do I need planning permission for commercial solar panels?

Most commercial solar panel projects are classed as permitted developments and don’t need planning permission, but checks are recommended for listed buildings and conservation areas.

How can battery storage help my business solar system?

Adding battery storage lets your business store surplus solar power for use at night or on dull days, increasing self‑consumption and reducing grid reliance.