Across the UK, businesses are increasingly turning to commercial solar to reduce energy costs, cut carbon emissions and protect themselves from volatile energy markets. Solar has transformed from a green add-on into a strategic commercial energy tool.
Solar Adoption is Growing Rapidly in the UK
UK solar capacity has grown sharply over the last decade, with total solar PV capacity now around 15.2 GW, and roughly 6.4 GW installed on commercial and industrial (C&I) sites such as warehouses, factories and retail buildings. That means nearly half of the country’s solar now sits on business roofs and facilities, not just homes. Businesses are choosing solar because energy prices remain elevated compared to historical norms. Even though energy costs have eased from their 2022 peaks, typical UK business electricity tariffs are still significantly higher than pre-2020 levels. This makes on-site solar generation an effective way to lower operating costs and provide budget certainty over the long term.
Lock in Lower Energy Costs with Solar Generation
A commercial solar installation allows a business to generate its own electricity during daylight hours and reduce reliance on grid supply. Each kilowatt hour generated and consumed on site represents power that does not need to be bought at retail rates from an energy supplier. With wholesale prices still uncertain and upward pressure forecast in the mid-term, solar remains a proven hedge against energy price volatility.
Improve Returns Through New Commercial Financing Models
Historically, the upfront cost of solar could deter businesses. Today there are flexible financing options that spread costs or eliminate them entirely. A Power Purchase Agreement (PPA) lets a business install solar with no upfront capital investment. The provider installs and maintains the panels, and the business purchases the power generated at a fixed rate that is typically lower than grid tariffs. Roughly 30 per cent of UK commercial solar installs now use this model, widening access for medium and large enterprises.
Government and Regulatory Support Makes Solar More Attractive
Several policies help improve the business case:
- Smart Export Guarantee (SEG) ensures that any exported solar electricity is paid for by suppliers at competitive rates, giving companies extra revenue on surplus generation.
- Capital allowances allow businesses to write off the full cost of qualifying solar installations against taxable profits in the first year.
- Business rates relief means that commercial solar often avoids increases in property tax that would otherwise come with added rateable value, particularly in Scotland and England.
Planning policy has also changed. Larger rooftop solar arrays can now be installed without full planning permission in most cases, removing a major barrier for projects up to several megawatts.
Solar Supports Net-Zero and Corporate Sustainability Targets
A growing number of UK companies are setting net-zero targets that require measurable reductions in scope 2 emissions (the carbon tied to bought electricity). On-site solar is one of the fastest ways to reduce these emissions while demonstrating tangible action to stakeholders, investors and customers.
Strategic Asset for Property Owners and Tenants
Commercial buildings with solar are increasingly attractive to tenants and investors. Solar can improve a building’s Energy Performance Certificate (EPC), which is becoming more important as Minimum Energy Efficiency Standards tighten. UK rules now prevent leasing properties below certain EPC levels without improvement, and having on-site renewables is an effective compliance tool.
In summary, solar generation in the UK is not just renewable energy. It is a smart commercial investment that lowers energy costs, improves sustainability performance, supports regulatory compliance and protects businesses from future price shocks. With supportive policy, better financing models and strong commercial returns, solar remains one of the most compelling energy strategies for UK businesses in 2026.
