Rent a Roof for Solar Panels: What a Commercial Roof Owner Needs to Know

Search for “rent a roof solar panels” and most of what comes back is aimed at homeowners. That is because the original rent-a-roof offer was a domestic product. A company installed panels on a house for free, kept the feed-in tariff payments, and the householder got the electricity. For a commercial roof owner the same phrase now describes something quite different, and mixing the two up is the main way owners end up with the wrong expectations.

This article separates the two, explains how commercial roof rental works today and lists what to check. The structural comparison of the instruments is in our guide to roof lease vs PPA vs licence; this piece is the plain-English entry point.

Why the old rent-a-roof offers disappeared

The domestic model depended on the feed-in tariff, which paid a fixed rate for every unit generated. The feed-in tariff closed to new applicants on 31 March 2019. The Smart Export Guarantee replaced it for exported power, but it pays only for what is exported, not for everything generated, so the economics that made “free solar for your roof” work for the installer no longer apply in the same way.

If you see a rent-a-roof offer that quotes feed-in tariff income, treat it as out of date.

What commercial roof rental looks like now

A commercial roof is a different proposition because the building uses a lot of electricity during the day, so the power can be sold to the occupier at a discount to the grid price instead of being exported. A developer funds, installs and owns the array. You grant a lease or licence over the roof. The occupier buys the on-site electricity under a power purchase agreement, and you receive rent.

Rent can be nominal, a fixed base rent, or a base rent plus a share of generation revenue. There is no standard figure, because it depends on roof area, orientation, structure, the occupier’s daytime load and the developer’s return requirements. Be wary of any single number quoted without those inputs.

What you give up

• Control of the roof. A lease is typically 20 to 30 years. You cannot simply re-roof, redevelop or re-tenant without engaging the lease terms.
• Most of the savings. The discount the occupier enjoys is set so the developer’s economics work. If you funded the array yourself you would keep more of the value.
• Export income. Power the building does not use is usually exported, and the revenue normally goes to the developer unless you negotiate it back.

What you gain

• No capital outlay and no construction risk. The developer carries the cost and the grid-connection risk.
• Rental income and a building that offers its occupiers cheaper, lower-carbon power.
• A better EPC and ESG story, which helps with lettability.

Whether to rent the roof or fund it yourself

The choice turns on your appetite for capital and your tax position. An owner using the array in its own trade can usually claim the Annual Investment Allowance, but that relief is not available for plant bought to lease to someone else, as set out in our capital allowances guide for owners and lessors. The wider picture, including the split incentive between landlord and tenant, is on our homepage guide to solar panels for commercial property.

Before you sign anything, work through a landlord’s clause checklist for a commercial solar lease agreement.

Frequently asked questions

Can I still get free solar panels in exchange for my roof?

Domestic free-solar schemes were built on the feed-in tariff, which closed to new applicants on 31 March 2019. Commercial roof rental still exists, but the terms are negotiated and the developer’s return comes from selling power to the occupier.

How much rent will a commercial roof earn?

It varies with roof area, structure, orientation and the occupier’s daytime electricity use. There is no reliable single figure. Get several developer proposals and compare the rent against what you would earn funding the array yourself.

Do I need my lender’s consent?

Usually, for a long roof lease. It creates a third-party interest in the property your lender has security over.

Who owns the panels at the end?

It is set by the contract. Either the developer removes them or ownership transfers to you. Silence in the draft is the thing to avoid.

Can you help me compare the options for my building?

Send an enquiry with the building and tenancy details and we reply by email.