Are Commercial Solar Panels Worth It?

2 min read
Tax BenefitsCapacity Planning
Ballasted black framed solar panels across a flat commercial rooftop at Alpine Place, Colindale, with Neasden temple on the London horizon

TL;DR

For a business that uses electricity during the day, usually yes, and the maths is unusually straightforward. Typical paybacks run three to six years at current commercial rates, the panels then generate for another two decades on 25 to 30 year performance warranties, and capital allowances soften the upfront cost. The businesses where it does not stack up share one trait: they hardly use power when the sun is up.

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The Variables That Decide It

FactorStrengthens the caseWeakens it
Daytime consumptionFactories, cold storage, offices, retailSites idle in daylight
Electricity rateHigh unit rates make every generated kWh worth moreLegacy cheap contracts
RoofLarge, unshaded, south or east west facing steelSmall, shaded, north facing, fragile
Self consumptionUsing most generation on siteExporting most of it at low rates
Tax positionProfitable business using capital allowancesNo profits to relieve

Self consumption is the number one lever. A generated unit you use replaces electricity at your full commercial rate; an exported unit earns a few pence. Sites that consume most of what they generate see the strong end of the payback range.

The Honest Cases Against

A business that runs at night and sleeps by day exports most of its generation at modest rates, and the case thins. A short remaining lease weakens it too, solar is a long asset, though landlords increasingly engage because the building gains value. And a congested or fragile roof can price a project out. The survey establishes all three before anyone spends money, which is the point of doing it free.

RELATED: What is a solar PPA?

Worth It Without the Capital?

If the returns appeal but the capital outlay does not, a power purchase agreement flips the model: a funder owns the system on your roof, you simply buy the power below grid rates. Less upside than owning, zero capital, still cheaper electricity from month one. We model both routes side by side so the decision is a comparison, not a leap.

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We model your last twelve months of half hourly consumption against your actual roof, and tell you the payback to the month. Want an Honest Answer for Your Site?

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