If you operate a business in the UK and want to slash energy bills, reduce carbon emissions, and boost your green credentials, then installing commercial solar panels is one of your smartest moves. In this guide, we’ll walk through what commercial solar, commercial solar panel installation, commercial solar installation UK, and related topics mean in practice and how Excel Energy UK (or Excel UK) can help you every step of the way.
Why Businesses Go Solar
For many companies, commercial solar is more than just a marketing talking‑point, it’s a reliable way to cut energy costs, reduce dependence on volatile grid prices, and improve sustainability credentials.
- By generating your own electricity, you reduce your energy bills and protect yourself against price spikes.
- You gain energy independence: the more you produce, the weaker your reliance on external supply.
- It’s a strong signal to stakeholders, customers, staff, investors that you take environmental responsibility seriously.
- Over time, the investment often pays for itself, and after that you continue to enjoy essentially “free” electricity (minus maintenance and small running costs).
Types of Commercial Solar Solutions
Not every business building is suited to the same solar setup. You might choose:
- Rooftop solar panels: The most common option, useful when your roof has good orientation and structural strength.
- Ground-mounted systems: Especially for businesses with land nearby who want to build arrays separate from the building.
- Hybrid solar + battery systems: Pairing solar panels with battery storage lets you capture and use more of your generation when demand is high.
- Integrated / building‑integrated solar: Solar façades, solar glazing, or solar embedded in canopies or external structures.
How a Commercial Solar Project Gets Delivered
A simplified flow:
- Site survey & assessment: Engineers measure roof size, orientation, structural load, shading, access, wiring.
- Design & system engineering: Decide size (kW or MW), panel type, inverter, cabling, mounting method.
- Permissions & planning: If needed, apply for building control / planning permission (depends on location)
- Installation & grid connection: Mount the panels, connect to your electrical board, install export metering, testing.
- Commissioning & activation: Turn on system, ensure safety, start generating.
- Operation & maintenance: Periodic inspections, cleaning, monitoring, repairs if needed.
UK-Specific Factors Your Business Must Know
- You’ll often need panels and installation to be MCS-certified to qualify for schemes like SEG.
- Some projects may require planning permission / building regulation approval, especially on listed buildings or protected areas.
- Commercial solar installations may benefit from 0% VAT in eligible cases, though that depends on use and property type.
- The Smart Export Guarantee (SEG) lets you sell surplus electricity back to the grid, giving you an additional revenue stream.
- Annual Investment Allowance (AIA) and other tax reliefs allow businesses to deduct qualifying capital expenditure (like solar) from taxable profits, improving financial return.
- Note: there are very few direct, UK‑wide grants available specifically for commercial solar projects; support is mostly via local programmes or tax incentives.
Grants & Incentives for Commercial Solar in the UK
Here’s a breakdown of current incentives and funding routes that might apply:
Because direct commercial-scale grants are rare, the best strategy is usually combining local grants (where available) with tax incentives and export revenue to create a viable investment.
Cost, Savings & Payback – A Closer Look
Below is a sample cost‑breakdown model for a commercial solar installation (figures are illustrative):
| Item | % of total cost | Notes |
| Solar panels | 25 % – 40 % | High efficiency panels cost more but yield better output |
| Inverters & electronics | 10 % – 20 % | Inverters, monitoring, switches |
| Mounting / structural work | 10 % – 15 % | Rails, frames, mounting hardware |
| Electrical & wiring work | 5 % – 10 % | Cabling, connection to main board |
| Labour & installation | 15 % – 20 % | Skilled installers, scaffolding, safety |
| Monitoring / meters / extras | 5 % – 10 % | Monitoring systems, export metering, safety gear |
Example scenario
Imagine a mid-sized warehouse with a rooftop that can host a 100 kW system. Suppose:
- Total installed cost: £100,000
- Annual electricity offset: £15,000 (i.e. your solar covers ~60–70 % of your demand)
- You use tax relief (AIA) and perhaps a local grant of £10,000
- Excess export revenue via SEG: £1,200/year
In that case, your net outlay might drop to ~£80,000, and your payback period might be 5–7 years depending on electricity cost escalation. After that, you enjoy mostly free electricity (minus maintenance).
Your actual return depends on system size, efficiency, shading, electricity use profile, and how much export revenue you capture.
Risks & Challenges to Keep in Mind
- If your roof structure is weak or in bad shape, you may need reinforcement, which adds cost.
- Shading (from neighbouring buildings, trees, chimneys) can dramatically reduce yield.
- Grid connection costs may be high, especially for larger installations or remote sites.
- Performance degrades over time (panels lose a little efficiency each year).
- Changes to regulations, tariff rates, or grants may shift over time, affecting your projected return.
Choosing the Right Commercial Solar Installer
When picking a commercial solar company, keep these criteria in mind:
- Must be accredited / certified (e.g. MCS or equivalent).
- Real track record: check past commercial installations, visit sites if possible.
- Transparent cost proposals and performance guarantees (e.g. guaranteed output, maintenance).
- Aftercare: monitoring software, service contracts, cleaning, repair.
- Strong warranties on panels, inverters, workmanship.
At Excel Energy UK / Excel UK, we combine deep experience, full transparency, and strong warranties so you know you’re placing your investment in good hands.
Example Case: How Excel UK Could Deliver for You
Suppose you run a medium‑size factory in the Midlands with a largely flat roof (2000 m² usable). Excel UK surveys the site, designs a 250 kW system, arranges necessary permissions, and handles full installation and commissioning.
We help you identify any local grant available (e.g. council support), apply tax relief, and set up export under SEG. You begin saving on your electricity bill immediately, and within 6 years you’d likely have recouped all your investment.
Over a 20 to 25 year system lifespan, the financial returns steadily add up. At the same time, you improve your sustainability credentials. This advantage strengthens your position in tendering processes, boosts public perception, and helps with regulatory compliance.
Final Thoughts & What to Do Next
If your business plans to adopt commercial solar, you stand to gain long-term financial relief, energy security, and green credentials. While direct solar panel grants for commercial installations are rare nationwide, combining local funding, tax incentives (AIA), and export revenue (SEG) can make the maths work.
If you’re serious about exploring this for your business, click here to contact Excel Energy UK for a free site survey and customised quote. Read more about our past commercial solar projects and how we deliver for clients just like you.
