Solar Panels for Commercial Property

Through the structure, not the meter. Begin with the power the landlord already pays for and consumes — common-parts lighting, lifts, HVAC, the car park and EV chargers — which solar offsets directly, with no split incentive. To reach the tenant's load, sell solar to them under a behind-the-meter or sleeved PPA priced below grid, supported by a green-lease addendum. If you want no capital outlay, lease the roof to a developer for rent plus a tenant power discount. And across all of it, the EPC uplift protects rent and capital value. The ownership and lease structure comes first and the system second — which is what a generalist solar quote often does not do.

As of June 2026 the only legally binding minimum is EPC E: since 1 April 2023 it has been unlawful to continue letting commercial property in England and Wales below EPC E, even to a sitting tenant. The Government's interim response of 18 June 2026 proposes raising this to EPC B by 2031 — but only for privately-rented non-domestic buildings over 1,000 m² and only where cost-effective; smaller buildings would remain at EPC E with no set deadline. The earlier 'EPC C by 2027' milestone has been scrapped, and the EPC B target will only take effect once secondary legislation passes through Parliament. Solar typically lifts a commercial EPC by one to three bands, which is why it is one of the most cost-effective compliance levers.

Generally no. Under the RICS Service Charges in Commercial Property professional standard (2nd edition, in force 31 December 2025), the initial capital cost of installing new plant or equipment — which is what rooftop solar is — is not recoverable through the service charge unless it is expressly justified and agreed. Recovery normally runs through a landlord–tenant PPA, a green-lease contribution capped at the tenant's own savings (per the BBP toolkit), or rent. Structure the recovery route at the outset so it stands up.

No. Rooftop solar and co-located battery storage are exempt from business rates in England until 31 March 2035, so the investment does not raise the rateable value. On a typical 250 kW warehouse array that protects roughly £3,000–£8,000 a year, or £30,000–£80,000 across the exemption window. Note that under a full repairing and insuring lease the rates payer is usually the occupier, so the benefit accrues to whoever is liable.

A landlord carrying on a property business can claim capital allowances on solar installed as a fixture. The headline relief is the Annual Investment Allowance — 100% in year one, up to £1m, permanently. Importantly, solar is classified as special-rate (integral features): companies can claim a 50% first-year allowance on special-rate plant, but full expensing, which is for main-rate plant, does not cover solar, and first-year allowances are unavailable for assets bought to lease — so landlords and PPA/roof-lease structures rely on the AIA (100% up to £1m) and the 6% writing-down allowance above it. When buying or selling a let property with existing solar, a CAA 2001 s.198 fixtures election must be agreed or the allowances can be lost. Always take professional advice on your specific position.

Funding it yourself means you own the asset, keep all the energy and SEG value, claim the capital allowances and improve your own balance sheet — but you carry the capex and the operating responsibility. A rooftop or airspace lease (the 'sell the roof' route) means a developer funds, owns and maintains the array, you take rent plus a power discount for the occupier, and you commit no capital — but you give up some roof control and surplus export, the lease is a registrable interest with SDLT and Land Registry consequences, and it needs mortgagee and insurer consent. Model both against your covenant, lease length and appetite for capex.

In England, rooftop solar on a commercial building is usually permitted development under Class J of the GPDO, with a 56-day prior-approval step on design, appearance and glint and glare; the 1 MW capacity cap was removed by S.I. 2023/1279 on 21 December 2023. Listed buildings, their curtilage and scheduled monuments are excluded, and an Article 4 Direction can withdraw the right. Scotland and Wales have their own rules. On a let building the lease matters as much as planning: the landlord needs consent from the lender and insurer, and a tenant may need to consent to access and works.

For an owner the structure matters more than the brand. Commercial installs typically use tier-1 modules in the 400–590 W range, with 25–30 year performance warranties; a competent installer should show the yield model, the structural survey and the grid position. Which party owns the array, who buys the power and what the lease allows decide the return. The route chooser shows which structure usually fits your building.