Commercial solar PV
MCS-certified commercial solar PV installation for North East businesses, warehouses, factories, schools and hospitality sites. Capital allowance and AIA-eligible. 3–5 year payback typical. Site survey within 7 working days of enquiry.
Commercial electricity prices spent 2022–2024 in a band roughly double the 2019 baseline and remain volatile. Most of our commercial customers locked in long contracts during the price spike that won't roll off until 2027–2028. Solar PV is the only large-scale lever available right now to materially reduce that fixed cost.
The economic case for commercial solar in 2026 typically delivers a 3–5 year payback (faster on factories and warehouses with high daytime demand; slower on office-only sites) followed by 20+ years of near-zero marginal-cost electricity. Annual Investment Allowance and capital allowances cut year-1 net cost by 25-30% for most limited companies.
3-5 yrs
Typical payback period
70-85%
Self-consumption (factories/warehouses)
£0.04-0.06
/kWh effective cost over 25 years
25 yrs
Panel performance warranty
Sectors we install for
Each commercial sector has its own demand profile, roof characteristics and financial considerations. Here's how solar typically plays out across the verticals we install for most often.
Large flat or shallow-pitch metal roofs are the highest-yield commercial solar substrate in the UK. Ballasted mounting avoids roof penetration; daytime energy demand (forklifts, lighting, cold storage) matches solar generation profile almost perfectly.
High continuous daytime demand and significant roof area drive 70-85% self-consumption without battery. Often the strongest economic case in the portfolio. Capital allowance + AIA puts year-1 net cost meaningfully lower than headline figure.
Term-time daytime demand and southerly roof aspects make schools strong solar candidates. Public Sector Decarbonisation Scheme (PSDS) grants available for academy trusts and LA-maintained schools.
Smaller roof area but premium business rates and ESG reporting requirements drive demand. Strong choice when paired with EV workplace charging for staff and visitors.
Steady year-round daytime demand (kitchens, laundry, HVAC). Solar PV pairs naturally with hot water heat pumps to reduce gas consumption.
High continuous demand 24/7 including overnight (a battery often makes sense). Strong PR + recruitment angle for ESG-conscious staff and families.
Commercial solar cost
Commercial solar is priced per kW installed, with significant economies of scale beyond 100kW. The figures below are pre-tax cap-ex; capital allowances reduce the effective net cost by 25-30% for most limited companies in the year of install.
| Site type | System size | Roof area needed | Indicative cost | Typical payback |
|---|---|---|---|---|
| Small commercial / retail unit | 15-30kW | 90-180 m² roof | £15,000-£32,000 | 4-6 yrs |
| Office / mid-size warehouse | 50-100kW | 300-600 m² roof | £42,000-£90,000 | 4-5 yrs |
| Manufacturing / large warehouse | 150-500kW | 900-3,000 m² roof | £120,000-£400,000 | 3-5 yrs |
| Large industrial / multi-site | 500kW-2MW+ | 3,000-12,000 m² roof | Bespoke quote | 3-4 yrs |
Indicative costs assume a clear roof with standard access, single-phase or 3-phase G99 connection, and ballasted or rail-mounted panel arrays. Bespoke quotes within 7 working days of half-hourly meter data + site visit.
How to fund it
Most of our commercial customers don't pay capital up front. Three financing structures dominate the market, each with a clear use case.
1. Capital purchase + capital allowances
Standard approach for cash-rich businesses. Pay capital up front; claim Annual Investment Allowance (£1m AIA threshold) plus capital allowances. Year-1 effective net cost is typically 25-30% below headline figure for a limited company at standard CT rate. Best long-term ROI.
2. Asset finance (hire purchase or lease)
Spread cap-ex over 5-10 years at fixed monthly cost. Typically structured so monthly payment is below monthly energy savings — the install is cash-flow positive from day one. We work with three asset finance partners and can structure a quote inside a week.
3. Power Purchase Agreement (PPA)
Zero up-front cost. A third party owns the array and sells the generated electricity to you at a fixed per-kWh rate below your retail price, typically with 1-3% annual escalator over 20-25 years. Strongest fit for large installs (200kW+) on stable long-tenure sites.
Tax efficiency
Solar PV qualifies as plant and machinery for capital-allowances purposes. The headline price isn't your true cost — capital allowances reduce a UK limited company's effective net cost by 25-30% at standard corporation tax rates. Three structures apply depending on system size and your accounting period.
Annual Investment Allowance (AIA) — most installs
100% Y1AIA permits 100% first-year deduction on qualifying plant & machinery, up to £1m per accounting period. For installs under £1m (the vast majority of commercial solar projects we see) the full capital cost reduces taxable profit in year one. At the 25% main CT rate, that's a 25p-in-the-£ effective discount. Example: A £180,000 industrial rooftop install reduces year-1 taxable profit by £180,000 — a £45,000 corporation tax saving — making the effective net cost £135,000.
Full expensing (alternative to AIA, large installs)
100% Y1For installs exceeding the £1m AIA limit, full expensing (made permanent in March 2024) allows 100% first-year deduction on new and unused plant in the main pool — no overall annual cap. For special-rate-pool plant (some integrated solar) 50% first-year allowance applies. Both improve cash flow vs the standard 18% / 6% writing-down allowances.
Teesworks Enhanced Capital Allowances
Freeport-onlyTees Valley Freeport (Teesworks) sites benefit from Enhanced Capital Allowances — 100% first-year capital allowance for qualifying new plant and machinery, including solar PV, ground-source heat pumps and battery storage. Combined with the Freeport's reduced employer NICs (zero on new workers up to £25k earnings for the first three years) this makes Teesworks one of the most tax-efficient locations in the UK for capital-intensive renewable installs. Available through 30 September 2026 (latest extension).
All figures indicative — final treatment depends on your accounting period, group structure and current loss position. We work with your accountant or recommend specialist tax advisers if you don't have one in-house.
Selected case studies
Three anonymised examples drawn from recent installs across our 30-mile service area. Customer details available under NDA on request.
2,400 m² insulated steel-frame roof on a single-shift manufacturing site. Daytime base load ~120 kW. Half-hour data showed ~70% match between generation and consumption profile.
3-building campus, 1970s flat roofs, mixed orientations. Public Sector Decarbonisation Scheme (PSDS) Phase 3c funded 100% of solar capital alongside heat pump retrofit.
2-storey office on Teesworks site. Strong daytime electrical load (servers, hot desks, AC). Zero capital outlay via PPA structure. 20-year fixed-rate agreement at 14p/kWh below grid price.
Figures from desk-feasibility models verified against 12-month post-install half-hourly data. Customer details available under NDA; we can put prospective customers in direct contact with reference installs for site visits.
Beyond rooftop solar
Where roof space is limited or the site has spare land, solar carports and ground-mounted arrays add significant capacity without compromising existing buildings.
Steel-framed canopy structures over staff or fleet parking. Dual benefit: weather protection for vehicles + 50-200 kWp solar generation. Pairs naturally with EV chargers underneath for workplace charging. Typical install: 30-50 spaces, 100-150 kWp capacity, payback 5-7 years.
Frame-mounted arrays on owned land — typical for agricultural sites, large industrial plots, and brownfield Freeport developments. Up to 500 kWp at <1 MW (below the SSEG threshold for simplified DNO connection). Pairs with grazing for agrivoltaics. Typical install: £550-£650/kWp installed.
ESG & carbon reporting
On-site solar PV is the single most direct way for a business to reduce Scope 2 emissions. Every kWh generated and consumed on-site avoids the grid carbon factor (currently ~0.207 kgCO2e/kWh per BEIS 2024 conversion factors). A 100kW array generating 90,000 kWh annually directly avoids approximately 18.6 tonnes CO2e per year.
We provide annual generation reports and certified carbon avoidance documentation for ESG / sustainability reporting, GHG Protocol Scope 2 disclosure, B Corp recertification, and CDP submissions. Useful for tenders that increasingly require carbon reporting, and for shareholder ESG disclosure for listed entities.
SECR (Streamlined Energy & Carbon Reporting)
GHG Protocol Scope 1, 2 & 3
CDP (Carbon Disclosure Project)
CSRD (EU Corporate Sustainability Reporting Directive)
TCFD (Task Force on Climate-related Financial Disclosures)
B-Corp & B-Corp recertification
PPN 06/21 Carbon Reduction Plans (public sector tenders)
Net Zero Investor / Carbon Trust audits
Our accreditations
MCS Certified
NAPM47760
Heat pumps & solar
NICEIC Approved
D124458
Electrical contractor
Gas Safe Register
947841
Gas appliances
Heat Geek Trained
Heat pump design specialists
TrustMark
Government endorsed
Quality scheme
SafeContractor
Approved
H&S accredited
ISO 9001
2015
Quality management
ISO 14001
2015
Environmental management
ISO 45001
2018
OH&S management
PAS 2030
:2019
Retrofit standard
NAPIT
Member
Electrical inspection
F-Gas Certified
Air conditioning refrigerant
MCS Certified
NAPM47760
Heat pumps & solar
NICEIC Approved
D124458
Electrical contractor
Gas Safe Register
947841
Gas appliances
Heat Geek Trained
Heat pump design specialists
TrustMark
Government endorsed
Quality scheme
SafeContractor
Approved
H&S accredited
ISO 9001
2015
Quality management
ISO 14001
2015
Environmental management
ISO 45001
2018
OH&S management
PAS 2030
:2019
Retrofit standard
NAPIT
Member
Electrical inspection
F-Gas Certified
Air conditioning refrigerant
Every accreditation listed is independently verified. We carry the registration numbers — ask for any on request.
Free desk feasibility from your half-hourly meter data, full site visit within 7 working days. Quote and IRR model inside two weeks of survey.
