Solar Panels on Commercial Property: Ten Questions an Owner Asks First

Owners of let commercial buildings ask a different set of questions from occupiers. They do not start with panel efficiency. They start with who benefits, who pays and what the lease allows. Here are the ten that come up first, with a short answer to each and a link to the full treatment on solar panels for commercial property.

1. If my tenant pays the bills, why would I pay for solar?

On a standard full repairing lease the tenant holds the energy contract, so a landlord-funded array saves the tenant money, not you. This is the split incentive. The way round it is a structure that lets you capture value: common-parts supply, a landlord-to-tenant PPA, a roof lease, a green lease or owner-occupation. The five routes are compared in the split incentive solved.

2. Can I put the cost on the service charge?

Generally not. Under the RICS Service Charges in Commercial Property standard (2nd edition, in force 31 December 2025) the initial capital cost of new plant is not recoverable that way. Running and maintenance costs can be. See can a landlord recover solar costs through the service charge.

3. Does the lease let me do it?

Only if the alterations clause and your reserved rights allow it. A green-lease clause or addendum fixes this; the drafting points are in BBP Green Lease Toolkit: the solar clauses an owner needs.

4. What is the easiest place to start in a multi-let building?

The landlord’s own supply: lifts, communal lighting, plant and the car park. No tenant is in the chain. The guide is common-parts solar for multi-let landlords, and the metering side is in multi-let building solar metering.

5. Can I sell electricity to my tenant?

Yes, through a landlord-to-tenant PPA, behind the meter or by private wire. It recovers the capital through the unit price rather than a charge. See landlord-tenant PPA and private wire.

6. What if I would rather not spend capital?

A developer can fund the array under a roof lease, paying you rent. You give up control, most of the savings and usually the export income. Start with roof lease vs PPA vs licence and check any draft against a landlord’s clause checklist.

7. Can I claim tax relief?

It depends on who uses the array. An owner using it in its own trade can usually claim the Annual Investment Allowance. That relief is not available for plant bought to lease to someone else. The mechanics are in capital allowances on solar panels for owners and lessors and are solar panels tax deductible for landlords.

8. What does solar do to my EPC?

Solar typically lifts a commercial EPC, but never assume a specific jump without a fresh assessment. It matters because letting below EPC E has been unlawful in England and Wales since 1 April 2023, and the Government’s interim response of 18 June 2026 proposes EPC B by 2031 for privately rented non-domestic buildings over 1,000 square metres, subject to secondary legislation. The asset-value angle is in green premium and asset value.

9. Will it help me let or re-let the space?

It can. Lower running costs for tenants and a better rating are both selling points, and during a void the saving falls straight to your holding costs. Evidence it with measured data rather than a marketing claim.

10. How do I find out what applies to my building?

It depends on your tenancy structure and the remaining lease terms, so start there. Send an enquiry with the building, the tenancy and a postcode and we reply by email.

Frequently asked questions

Do I need planning permission?

Often not for a rooftop array on a commercial building, but check the specifics for your site. Our planning blog covers it: planning permission for commercial rooftop solar.

Who is this site for?

Owners, landlords, investors and managing agents of commercial property. We are an independent publisher; we do not install.