Commercial solar panels: a guide for building owners and tenants
How to build a business case for solar, from the benefits to funding options.
Energy costs have been one of the toughest parts of running a business in recent years. Here’s the good news: part of the answer could be right above your head.
Commercial buildings such as warehouses, factories, offices and retail spaces often have a large roof space that could be used to generate clean power: leading to energy bill savings and carbon savings too. They also tend to use most of their power during daylight hours – so why don’t more businesses have solar?
Usually, it’s not the roof. It’s getting the “yes” from the right people.
If you own your building, you need a yes from your MD, CEO or Finance Director. If you rent, you need that yes and your landlord’s agreement too. Both have their challenges, but both are possible.
This guide gives you everything you need to make the business case for solar.
How to build the business case for commercial solar panels
Whoever signs off on solar will want three things: clear benefits, direct answers on the risks, and a way to pay for the investment that works for the business. This guide helps you cover all three.
Explaining the benefits of commercial solar panels
- Lower energy bills. Every unit you generate and use on site is one less unit you need to buy from the grid. Depending on your roof space and energy usage, the savings could be significant. Look at our commercial solar case studies.
- Price certainty. Solar generation costs are largely fixed once installed, protecting your budget if energy prices rise in the future.
- Lower Scope 2 emissions. On-site generation directly reduces the emissions from the electricity you buy, supporting your own net zero targets.
- A stronger supply chain position. Businesses that need to report and cut Scope 3 emissions will favour partners who can show progress. This can help you as a more sustainable supplier.
- Room to grow. A solar system can support further improvements such as battery storage, EV fleet charging and more electrified equipment as your operations change and expand.
Understanding any risks and how they’re managed
Any big project raises questions, risks and mitigations. It helps to understand them before you’ve started, so you can be prepared to answer the tough questions when they come, and keep your project from stalling.
| Risk | How it’s managed |
| Roof condition or age | A structural survey before any design work confirms your roof can take the load and will outlast the system, or flags repairs to plan in first. Good Energy can arrange this survey. |
| Upfront cost | There are several ways to finance a solar installation. Asset finance spreads the cost with little or no deposit, and a Power Purchase Agreement (PPA) means no upfront cost at all (see more detail below). |
| Disruption to operations | Installation is planned around your working patterns, with roof access, safety, and short periods of downtime agreed in advance to minimise disruption. |
| Grid connection | Your installer deals with the local network operator (the company that runs your area’s grid) for you, and designs the system around what’s approved. |
| Lease length (for tenants) | The solar payback period and your lease term should work together. You should also agree what happens to the system with your landlord. |
Knowing how to finance a commercial solar install
How you pay for solar is often what helps your Finance Director say yes. The good news is that you’re able to model the costs and payback period over time with a solar assessment, and you can pick the funding route that best suits you and your business.
- CAPEX purchase. You own the system from day one, and once it has paid for itself through savings in your bills, your solar electricity is effectively free. This gives you the biggest long-term return.
- Asset finance. Own your system while protecting your cash flow. Costs are spread over several years with little or no deposit, and your savings often cover the repayments.
- Power Purchase Agreement (PPA). Get savings and price certainty with no upfront cost. A third-party funds and owns the system, and you buy the electricity it generates at a discounted rate. PPAs suit larger systems of 250kWp (your system’s peak output) and above, and are often chosen by landlords and tenants.
At Good Energy, we can also point you towards any grants or government funding available for your project. Speak to our team about your options today.
Can you install commercial solar if you rent your building?
You’ve got the business case. What happens next depends on your building.
Installing commercial solar panels on a commercial building you own
Know who you’re talking to
Different people will care about different parts of the case, so make sure you’re equipped with the right business case for each stakeholder, and focus on what matters most to them.
| Decision maker | What they’ll want to know |
| Finance Director | What’s the payback period (return on investment), will it be worth the money, what will it cost and how can we fund it? |
| MD or CEO | Does it fit our business plans, customer expectations and reputation? |
| Operations or Facilities lead | How will it affect the site, roof access and safety and will there be disruptions during install? |
| Sustainability lead | Scope 2 reductions, reporting and progress against targets |
Your pitch checklist
If your company owns the building, your own leadership team will make the decision.
What to prepare:
- Half-hourly electricity consumption data. Ask your supplier to provide this.
- Your energy bills from the last 12 months.
- Basic roof details: age, material, size and any planned repairs.
- Any sustainability or emissions commitments your key customers have asked you to meet.
- Your own net zero or carbon reduction targets, if you have them.
Good Energy will use this information to create your free solar proposal that shows potential savings, carbon emission reductions and return on investment.
Then shape your pitch around five points:
- The problem. What energy currently costs the business, and how exposed you are to price changes.
- The proposal. A solar system sized to your site and your daytime demand.
- The numbers. Estimated savings, payback period and the funding route that suits your budget.
- The risks, handled. Roof, disruption and grid connection, and how each is managed.
- The ask. Approval for a feasibility study or site survey, a low-commitment first step.
Good Energy’s feasibility assessment turns all of this into confirmed figures for your site, so your pitch is built on evidence, not estimates.
Installing solar panels on a rented commercial property: what tenants need to know
If you rent your building, you’re in good company. Plenty of businesses lease their premises, and many landlords are looking at solar as a way of future proofing their property. Your landlord has plenty to gain from agreeing to a solar installation too.
Why your landlord should say yes:
- A more valuable asset. A building with solar is more attractive to future tenants and investors.
- A better energy rating. Solar can improve a building’s EPC, which is its energy performance rating. This matters as minimum energy efficiency standards for commercial properties are getting stricter.
- Happier, longer-staying tenants. Lower running costs make a site easier to let and to keep let.
- Their own ESG goals. Many commercial landlords have sustainability targets to meet across their property portfolio.
There are three ways to make the funding work:
- Landlord-funded. The landlord installs the system and sells you the electricity, often below grid prices. You save without any capital outlay; they earn a return on their roof.
- Tenant-funded. You fund the system yourself, either upfront or through asset finance. You’ll need the landlord’s consent, usually through a licence for alterations or a lease variation.
- Third-party PPA. A funder installs and owns the system, and you buy the power. The landlord grants roof access and nobody pays upfront. This route suits larger systems of 250kWp and above.
What to agree before you start:
- Consent for alterations and access to the roof for installation and maintenance
- Who owns, maintains and insures the system
- What happens to the system at the end of your lease, or if you move out early
- How the lease term lines up with the system’s payback period
You’ll also still want your own leadership team behind you before you knock on your landlord’s door, with the business case above as your starting point.
Your next step: get a free commercial solar assessment
Whether you own or rent your premises, you don’t need to have the entire project worked out before you start.
A feasibility assessment can show what your roof could support, how a system could match your electricity use, what the likely financial case looks like, and which funding structure could work for your organisation.
Good Energy’s in-house commercial solar team can assess your site and provide a free solar proposal. This gives you the evidence you need for the next conversation with your leadership team, or landlord.
Commercial Solar FAQs:
Yes, installing commercial solar panels has many benefits, including improving your property’s EPC rating, reducing carbon emissions and providing lower, more stable energy costs for your tenants. Depending on your agreement, you could also generate income by selling the electricity back to your tenants and exporting the surplus to the grid.
We can work with you and your tenants to design a solar solution that meets your needs, with minimal disruption to day-to-day operations.
Take a look at our BSH Corby case study for example of how we’ve worked with landlords and tenants together
Yes, it is possible to work with your landlord to install solar panels. This can be a good way for them to appeal to future tenants, improve their energy rating and support ESG goals, and there are several financing routes available.
Yes. Using electricity generated by solar panels on your site can reduce the amount of electricity you need to buy from the grid, lowering the Scope 2 emissions associated with your electricity use. This can support your business’s wider carbon reduction and net zero goals.
Installing commercial solar panels is a smart investment for most UK businesses looking to reduce energy costs and improve sustainability. Whether you’re a building owner or a tenant, Good Energy can help assess your site and the feasibility for your business. Get your free solar panel assessment.
