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Guide for businesses

Solar for businesses: the basics

Costs for larger systems, VAT, business rates, export tariffs, planning, grid connection and tax — the basics for small businesses and farms.

Checked 9 October 2026 · Sources

Single-storey cafe building with a long row of solar panels on its roof
Solar panels on a campus building at the Open University, Milton Keynes · Photo: mattbuck, CC BY-SA 3.0

Costs

Government figures for 2025/26 put the median price for 10–50 kW systems at £1,204 per kW in Great Britain — lower per kW than smaller home systems. Non-domestic installations cost less per kW on average than domestic ones.

VAT

The 0% VAT rate applies only to installations in homes. Solar on business premises is charged at the standard rate.

Business rates (England)

Equipment used to generate and store renewable energy on site, such as rooftop solar and batteries, is exempt from business rates in England from 1 April 2022 to 31 March 2035. Scotland, Wales and Northern Ireland have their own rules — check with your local council.

Tax

Ask your accountant which tax allowances apply to solar for your business.

Export tariffs

Businesses can be paid for exports too. For example, E.ON Next offers a 12-month fixed business export tariff of 8.5p per kWh (checked 9 October 2026), and EDF and British Gas have business tariffs. See the Smart Export Guarantee (Great Britain only).

Planning (England)

Solar on non-domestic buildings is permitted development unless, for example:

  • panels on a pitched roof stick out more than 0.2 m
  • panels on a flat roof rise more than 1 m, or are within 1 m of the roof edge
  • the building is listed, or the site is a scheduled monument
  • wall panels stick out more than 0.2 m or are within 1 m of a wall and roof junction

Some roof installations need prior approval from the council on design and appearance, especially glare. In Scotland, free-standing solar in the grounds of non-domestic buildings, up to 12 m², is now permitted development. See planning permission.

Grid connection

Systems larger than 16 A per phase (about 3.68 kW on a single-phase supply) come under the G99 rules, which need the network operator's approval before connection. Allow time for this.

Loans

The government's Warm Homes Loan Scheme doesn't lend to businesses.

Find an installer

Use our directory filter for businesses, or browse commercial solar and farm and ground-mounted solar installers.

Sources

  1. DESNZ: Solar PV cost data
  2. HMRC VAT Notice 708/6: Energy-saving materials and heating equipment
  3. legislation.gov.uk: Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022
  4. E.ON Next: Smart Export Guarantee tariffs
  5. EDF: Smart Export Guarantee tariffs
  6. British Gas: Smart Export Guarantee tariff
  7. legislation.gov.uk: GPDO 2015 (England) Schedule 2 Part 14
  8. Scottish Government: Planning Circular 2/2024 non-domestic PDR
  9. ENA: Distributed Generation Connection Guide – G98 single premises
  10. DESNZ: Warm Homes Loan Scheme – scheme rules (Sept 2026)

This guide is general information, not financial or legal advice. Rules and prices change, and some differ between England, Wales, Scotland and Northern Ireland — check the sources for your situation.