Introduction

In the UK, energy costs continue to place significant pressure on businesses of every size. Although the sharp volatility of 2022–23 has eased, non-domestic electricity prices in 2025 remain far higher than pre-crisis levels, with many organisations still paying between 21 and 26 pence per kWh depending on usage and contract type. As companies head into 2026, these elevated costs continue to erode margins, heighten financial risk, and place growing importance on long-term energy resilience—particularly for sectors that rely heavily on electricity, such as manufacturing, logistics, retail, warehousing, and office environments.

Solar PV offers a proven and increasingly accessible solution, allowing organisations to generate their clean energy onsite and shield themselves from further volatility.

Government policy is also firmly behind the technology. The UK’s Solar Roadmap sets out a clear trajectory to reach 45–47 GW of solar capacity by 2030, and close to 70 GW by 2035, with a strong emphasis on unlocking commercial rooftops, business estates, and solar canopies in car parks. This focus reflects a broader recognition that businesses, schools, warehouses, and factories offer some of the largest untapped surfaces for solar deployment, making them essential to the UK’s decarbonisation strategy.

For companies, the advantages go well beyond cost savings. Solar PV directly supports net zero and ESG commitments, helping businesses demonstrate leadership in sustainability while meeting growing expectations from investors, regulators, and customers.

On-site generation provides greater energy resilience, reducing reliance on the grid and offering protection against future market shocks. At the same time, surplus energy can be sold back to the grid through the Smart Export Guarantee (SEG), providing an additional revenue stream for systems up to 5 MW in capacity.

Importantly, solar PV is a practical fit for many types of organisations. Businesses with high daytime electricity use—such as manufacturing plants, distribution centres, office complexes, and educational institutions—are well positioned to consume most of the energy generated on-site, delivering fast payback periods and long-term returns on investment.

Even companies with more modest energy needs can take advantage of Power Purchase Agreements (PPAs), where a third-party investor funds the system and the business benefits from cheaper, fixed-rate electricity without any upfront costs.

The case for commercial solar PV in the UK is therefore stronger than ever. It provides a way to reduce costs, strengthen sustainability performance, and future-proof operations—all within a regulatory and policy environment designed to encourage adoption. For businesses seeking to improve efficiency and build resilience, solar is no longer just a green option—it is a strategic investment in long-term competitiveness.

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The UK Government has set ambitious targets for solar capacity, aiming for 70 GW by 2035 through both commercial and public sector adoption. These targets are outlined in the official UK Solar Roadmap, which highlights the role of businesses in achieving net zero.

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Why solar PV makes sense for UK businesses

Solar PV is one of the most practical and financially viable renewable technologies available to UK businesses today. Unlike other forms of generation, it integrates seamlessly with commercial buildings, warehouses, factories, and estates, allowing organisations to take control of their energy supply without disrupting day-to-day operations. With installation standards and technology now mature, solar PV is a proven route to achieving both immediate cost savings and long-term sustainability benefits.

The most compelling driver is cost. Electricity prices for UK businesses remain high by historic standards, with typical non-domestic rates in 2025 ranging from 21 to 26 pence per kWh, depending on contract type and consumption levels. This continued volatility has led many organisations to seek energy strategies that provide stability and predictability. By generating clean electricity onsite, companies can reduce their reliance on the grid, protect themselves from future wholesale price movements, and lower overall operating expenses.

Sustainability is another powerful factor. Businesses are under increasing pressure to meet net zero commitments, ESG reporting obligations, and supply chain sustainability standards. Solar PV is a highly visible and measurable way to cut carbon emissions, demonstrate environmental responsibility, and improve stakeholder confidence. Customers, investors, and employees alike are increasingly choosing to engage with organisations that take proactive steps towards decarbonisation, making solar not just a cost-saving measure but also a competitive advantage.

Government policy further strengthens the business case. The UK’s Solar Roadmap emphasises commercial rooftops and car parks as central to achieving 45–47 GW of solar by 2030 and 70 GW by 2035. Businesses that invest now are not only reducing costs but also aligning themselves directly with government strategy, positioning themselves favourably for future opportunities, including enhanced green finance options, corporate sustainability partnerships, and potential regulatory incentives.

Solar PV is also highly versatile and relevant across many industries:

• Manufacturing and heavy industry: High daytime energy demand makes factories and production facilities ideally suited to solar. On-site generation reduces operating costs and provides resilience in energy-intensive environments.
• Logistics and warehousing: Large roof areas on distribution centres provide excellent space for high-capacity solar arrays, helping to cut costs in facilities that typically run around the clock.
• Education and public sector estates: Schools, colleges, and universities often face budget constraints but have consistent daytime usage. Solar reduces costs, supports sustainability goals, and provides an educational platform for students.
• Offices and commercial buildings: With rising energy bills and ESG targets, solar enables office-based businesses to improve efficiency, reduce carbon footprints, and demonstrate environmental leadership to clients and employees.

Finally, solar PV offers financial flexibility. Companies can invest outright through capital expenditure, claim available tax allowances, and retain full ownership, or opt for Power Purchase Agreements (PPAs), in which a third party installs and operates the system. At the same time, the business simply purchases the electricity at a lower, fixed rate. This adaptability ensures solar PV works for organisations of all sizes and across all sectors.

Taken together, these benefits make solar PV a uniquely attractive option for UK businesses: it cuts costs, strengthens resilience, enhances sustainability credentials, and delivers sector-specific advantages that support long-term competitiveness.

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Businesses are under increasing pressure to cut carbon emissions while managing rising energy costs. Solar PV provides a proven way to reduce both, and aligns directly with the UK’s Net Zero Strategy, which outlines the transition to clean energy.

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Financial benefits of solar for businesses

The financial case for solar PV is one of the strongest reasons UK businesses are turning to renewable energy. With grid electricity prices remaining unpredictable, onsite generation provides a direct way to reduce operating costs, stabilise budgets, and unlock new revenue streams. Whether funded through direct investment or a third-party Power Purchase Agreement (PPA), commercial solar offers long-term financial advantages that improve resilience and competitiveness.

Direct energy savings

Generating electricity on-site reduces the amount of power purchased from the grid, thereby reducing exposure to wholesale price volatility. With typical commercial electricity prices in 2025 ranging between 21 and 26 pence per kWh, every unit of self-consumed solar power translates directly into avoided costs. For energy-intensive sectors such as manufacturing and warehousing, these savings can be substantial over the system’s 25–30 year lifespan.

Export revenue through the Smart Export Guarantee (SEG)

When businesses generate more electricity than they use, the surplus can be sold back to the grid. Under the Smart Export Guarantee, organisations with systems up to 5 MW in capacity can access export payments, provided they have compliant metering and an agreement with an eligible supplier. While export tariffs vary between suppliers, the SEG provides a guaranteed route to monetise unused generation, adding further value to a solar investment.

Tax treatment and allowances

Businesses investing in solar PV can benefit from specific capital allowance rules. Solar installations are classed as special rate assets, allowing companies to claim a 50% first-year allowance on qualifying expenditure, with the remaining balance written down at the 6% special rate pool. While full expensing does not apply, this still provides valuable tax relief on upfront costs. It should also be noted that VAT for commercial solar remains standard-rated at 20%, meaning VAT-registered businesses can typically reclaim it.

Funding options: Capex vs PPA

Companies can choose between two main funding models:

• Capex (owned system): The business funds the installation, claims tax allowances, and benefits from the full value of the energy generated. This option typically delivers the highest long-term return on investment.
• Onsite Power Purchase Agreement (PPA): A third-party investor funds, owns, and operates the system, while the business pays only for the electricity consumed at an agreed rate, usually below standard grid tariffs. PPAs remove upfront costs and allow businesses to benefit from cheaper, greener electricity without capital expenditure.

Long-term ROI and stability

Solar PV is a long-lived asset, with typical lifespans of 25 years or more and minimal maintenance requirements. Once installed, the electricity generated is effectively free, providing predictable savings that improve with every rise in grid prices. Businesses that invest now can lock in these benefits while also enhancing their sustainability profile and reducing risk.

Taken together, these financial benefits make solar PV a compelling proposition. From reducing costs and generating new revenue to improving tax efficiency and offering flexible funding routes, solar has moved from being a sustainability add-on to a mainstream financial strategy for UK businesses.

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UK companies can lower energy bills, earn revenue from surplus electricity, and benefit from capital allowances. HMRC provides guidance on allowances under the Capital Allowances for Plant and Machinery framework.

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Planning and compliance considerations

While solar PV is one of the most straightforward renewable technologies for businesses to adopt, there are important planning and compliance requirements to consider before installation. Understanding these at the outset helps ensure smooth project delivery and avoids unexpected costs or delays.

Planning rules

In England, most commercial rooftop solar PV installations fall under Permitted Development Rights, meaning they can usually proceed without a formal planning application. This also applies to many solar canopies installed over car parks.

However, there are important conditions: installations must not exceed certain height limits, must not significantly affect the building’s external appearance, and cannot be placed on listed buildings or in sensitive heritage locations without consent.

Businesses should always check with their Local Planning Authority before proceeding, especially for larger systems or unique sites. Different rules apply in Scotland, Wales, and Northern Ireland, so local guidance is essential.

Grid connection requirements

Any business generating electricity onsite must comply with engineering standards for grid connection. For most commercial systems, this means complying with the G99 regulations, which govern the connection of generation equipment to three-phase networks. Applications are made through the local Distribution Network Operator (DNO), and approval is required before the system can export power. The process can take time depending on network capacity, so early engagement with the DNO is recommended.

Certification and installation standards

Quality and compliance are central to a successful solar project. In the UK, the Microgeneration Certification Scheme (MCS) sets the recognised standards for solar PV installation. The current MIS 3002:2025 standard governs system design, installation, and commissioning, while MCS 012 sets requirements for roof-mounting kits, including updates for flat roof systems. Using an MCS-certified installer not only ensures technical quality and safety but is also a requirement for accessing the Smart Export Guarantee (SEG), making it a critical step for businesses seeking to monetise surplus generation.

Health and safety compliance

As with any construction activity, solar PV installation must comply with UK health and safety legislation, including the Construction (Design and Management) Regulations 2015 (CDM). This ensures that risks are properly managed during installation and that businesses remain compliant with workplace safety requirements.

Ongoing responsibilities

Once installed, solar PV systems require only minimal maintenance, but businesses must ensure that systems are inspected, maintained, and recorded in line with manufacturer and installer guidelines. This protects warranties, ensures performance, and provides assurance to stakeholders that the system is being properly managed.

Checklist: What businesses should confirm before installation:

• Confirm with your Local Planning Authority whether your site qualifies under Permitted Development.
• Apply to your Distribution Network Operator (DNO) for grid connection approval under G99 regulations.
• Ensure your chosen installer is MCS-certified and working to the latest MIS 3002:2025 and MCS 012 standards.
• Review health and safety compliance requirements under CDM 2015 for installation works.
• Implement a plan for ongoing maintenance and performance monitoring to protect warranties and ensure long-term efficiency.

By addressing planning and compliance considerations early, businesses can streamline their solar projects and avoid unnecessary delays. Working with experienced, accredited installers ensures that systems are not only fully compliant but also optimised for performance, safety, and long-term reliability.

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Most commercial solar installations fall under Permitted Development Rights in England, but businesses should always check local planning requirements before proceeding. The Planning Portal provides clear rules for solar panels on non-domestic buildings.

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What drives ROI for UK businesses

The return on investment (ROI) from solar PV depends on several interlinked factors. For UK businesses, understanding these drivers is essential to setting realistic expectations and ensuring that solar projects deliver both financial and strategic value.

Load matching and self-consumption

The single biggest factor influencing ROI is how much of the generated electricity a business can use onsite. Organisations with consistent daytime demand—such as manufacturers, logistics hubs, and offices—tend to achieve the fastest payback because most of their solar generation is directly consumed, displacing expensive grid electricity. The higher the self-consumption rate, the greater the savings.

System size and usable space

The scale of the installation is directly linked to the potential return. Large warehouses and distribution centres often have expansive roof areas suitable for multi-megawatt systems, creating significant cost reductions. Smaller office buildings or retail units may host more modest systems, but the relative savings can still be substantial. Ground-mounted systems or car park canopies also increase the available footprint, allowing businesses to scale up capacity.

Location and solar irradiance

While the UK does not have the solar resource of southern Europe, there are regional variations in solar yield. Installations in the south of England, for example, tend to generate slightly more electricity than those in northern regions. However, advances in solar panel efficiency mean that systems across the UK now provide strong, consistent returns.

Grid connection and export arrangements

The ability to export surplus energy can influence ROI. Businesses connected under the right conditions can benefit from the Smart Export Guarantee (SEG), which pays for exported electricity up to 5 MW. However, when grid export is restricted, designing the system for maximum self-consumption becomes even more critical.

Energy prices and tariff structures

The baseline against which savings are measured is the prevailing cost of electricity. In 2025, non-domestic rates typically range from 21 to 26 pence per kWh, depending on the sector and tariff structure. At these sustained price levels, solar PV remains highly competitive, particularly for organisations with strong daytime electricity demand. As prices fluctuate into 2026, the long-term financial certainty of onsite generation becomes even more valuable.

Tax allowances and funding strategy

ROI is also shaped by the way systems are funded. Businesses that invest outright through capital expenditure can claim special-rate capital allowances, including the 50% first-year allowance. This accelerates tax relief on the investment and enhances the effective return. Alternatively, companies that prefer not to use their capital can choose Power Purchase Agreements (PPAs), which deliver savings from day one without upfront costs. However, long-term returns remain with the third-party investor.

Operational profile and future expansion

Businesses planning for long-term growth should also consider how solar PV fits within their wider energy strategy. Combining solar with battery storage or EV charging infrastructure can extend the system's value, maximise self-consumption, and increase resilience. This flexibility further strengthens ROI by ensuring the system continues to meet evolving operational needs.

Taken together, these factors demonstrate that ROI from solar PV is not a fixed number but a function of how well the system aligns with the business’s operations. With the right design, funding model, and compliance in place, UK companies can achieve strong financial returns alongside measurable carbon reductions and greater energy security.

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Return on investment from solar depends on self-consumption rates, system size, and energy prices. Government energy statistics published quarterly provide benchmarks for non-domestic electricity prices used in payback calculations.

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Wider business benefits

Beyond direct financial returns, solar PV delivers a wide range of strategic benefits, making it an attractive investment for UK businesses. These advantages extend into areas such as reputation, resilience, and future readiness, helping organisations strengthen their competitive position while contributing to the UK’s wider sustainability goals.

Sustainability leadership

Installing solar PV allows businesses to demonstrate clear progress towards their net-zero commitments and environmental, social, and governance (ESG) targets. This visible commitment to sustainability can help attract new customers, satisfy investor expectations, and strengthen relationships with supply chain partners who increasingly prioritise low-carbon credentials.

Reputation and stakeholder value

Stakeholders—whether customers, employees, or shareholders—are placing greater value on businesses that take credible action on climate change. Solar PV provides a tangible example of sustainability in action, helping companies differentiate themselves in the market. For employees, working for a sustainable organisation also enhances engagement and supports recruitment and retention, particularly among younger generations.

Energy security and resilience

By generating their own electricity, businesses reduce dependence on the national grid and protect themselves against market volatility and potential supply disruptions. This resilience is particularly valuable for energy-intensive sectors such as manufacturing, logistics, and healthcare, where continuity of supply is critical.

Future flexibility

Solar PV systems can be integrated with battery storage to maximise self-consumption, provide backup power, and further stabilise energy costs. In addition, pairing solar with electric vehicle (EV) charging infrastructure allows businesses to prepare for the transition to electric fleets, lowering transport emissions and supporting staff and visitor EV adoption.

Long-term asset value

Commercial solar systems typically last 25 years or more and require minimal maintenance, making them a reliable long-term asset. Buildings with solar installations can be more attractive to potential buyers or tenants, as they offer lower operating costs and improved sustainability credentials.

Together, these wider benefits show that solar PV is more than just an energy-saving technology. It is a strategic tool that helps businesses reduce risk, enhance reputation, and future-proof their operations in an increasingly carbon-conscious economy.

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Beyond cost savings, solar helps organisations strengthen sustainability credentials and meet ESG targets. These commitments align with the UK Government’s broader Sustainability and Climate Change Strategy, which encourages organisations to embed green practices.

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Next steps for businesses considering solar

For UK businesses, the opportunity to harness solar PV is clear: it reduces energy costs, strengthens sustainability credentials, and improves long-term resilience. The challenge often lies in knowing how to move from initial interest to a fully functioning, high-performing system. This is where working with an experienced partner becomes essential.

At Focus Green, we specialise in helping organisations unlock the full value of commercial solar PV. Our role goes far beyond installation—we act as a strategic sustainability partner, ensuring every project is designed, delivered, and optimised to meet both financial and environmental objectives.

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To ensure compliance and access incentives such as the Smart Export Guarantee (SEG), businesses should work with accredited installers and suppliers. Ofgem provides guidance on the SEG scheme and eligibility criteria.

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Comprehensive assessments

We start by evaluating your site, energy profile, and operational needs to determine the most effective system size and funding approach. Whether your priority is maximising self-consumption, reducing carbon emissions, or exploring export opportunities, we tailor our recommendations to your specific goals.

Navigating compliance and regulations

Solar projects must meet planning, grid connection, and certification requirements. Our team manages these processes for you, ensuring compliance with G99 regulations, securing approvals from your Distribution Network Operator (DNO), and delivering installations to the latest MCS standards. This reduces complexity and provides peace of mind that your system is fully compliant and future-ready.

Maximising ROI

We understand that solar is a financial as well as a sustainability decision. That’s why we design systems to deliver the best possible return on investment, considering factors such as self-consumption rates, available tax allowances, export revenue potential, and future integration with storage or EV charging. Our expertise ensures that your system is not just technically sound but also financially optimised.

Long-term sustainability support

Our partnership does not end at installation. We provide ongoing support, monitoring, and advice to ensure your system continues to perform at its best throughout its lifespan. As policies, energy markets, and sustainability reporting requirements evolve, Focus Green is on hand to help your business stay ahead.

Contact Focus Green

If your organisation is exploring the benefits of solar PV, we would be delighted to support you on that journey. Contact Focus Green today for a no-obligation consultation and discover how we can help reduce your energy costs, cut carbon emissions, and achieve the best possible return on investment.