Do business solar panels pay for themselves?
They can, and the deciding factor is simple: how much of the power you’d use yourself. Business solar panels earn their keep when the building is busy during daylight, because every unit you generate and use is a unit you don’t buy at your contract rate. A site that’s empty all day and busy at night gets far less from the same roof.
That’s the comparison this guide makes. Not solar against some abstract idea of green energy, but business solar panels against the grid power you’re already paying for, on the contract you already have.
Key takeaways
- Business solar panels pay best when you use the electricity on site. Exported power usually earns less than bought power costs.
- The Smart Export Guarantee covers installations up to 5MW, so most business rooftops qualify. Suppliers set their own rates.
- In England, solar panels and battery storage are left out of business rates valuations until 1 April 2035.
- You’ll still need a grid contract for the hours the sun doesn’t cover, so the solar decision and the energy contract belong in the same conversation.
How do business solar panels compare with buying from the grid?
Grid power costs you a unit rate and a standing charge, fixed or variable depending on your contract. Solar costs you nothing per unit once it’s installed, but the installation is a capital cost up front, or a monthly payment if you finance it.
So the sums come down to four numbers. What the system costs to install. How many units it should generate in a year. What share of those you’ll use on site. And what you pay per unit from your supplier today. An installer’s quote should give you the first two, your half hourly data or bills give you the third, and your contract gives you the fourth.
| Question | Grid power only | Business solar panels plus grid |
|---|---|---|
| Upfront cost | None | Installation, paid or financed |
| Cost per unit used | Your contract rate | Nil for solar units, contract rate for the rest |
| Exposure to price rises | Full, at each renewal | Reduced for the share you generate |
| Spare power | Not applicable | Exported, paid at a rate your supplier sets |
| Works at night | Yes | Only with battery storage |
We haven’t quoted installation prices here because they vary with roof type, system size and access, and a figure that’s right for a warehouse is wrong for a shop. Get at least two quotes for your own building.
What does a real example look like?
The Energyst reported one on 6 November 2026. Redbourn Leisure Centre in Hertfordshire has a newly commissioned 130kWp rooftop system with a 104kWh battery, forecast to produce around 130.86MWh a year. The report says that’s expected to cut the centre’s electricity costs by 61% and save more than £19,000 a year.
The detail that matters is this one. Since the system was switched on, around 90% of the solar power has been used on site and 10% exported. A leisure centre runs all day, every day, which is exactly the pattern that makes business solar panels work. Those are the project’s own forecasts, reported by the installer, and 40% of the capital came from a social investment fund, so read it as an illustration, not a benchmark.
What happens to the electricity you don’t use?
You can be paid for it through the Smart Export Guarantee. Ofgem says the scheme, which launched on 1 January 2020, requires some electricity suppliers to pay small generators for low carbon electricity they export to the grid. It’s open to anyone with an eligible installation up to 5MW in Great Britain, and solar is on the list.
Two points from Ofgem’s page are worth knowing before you count on that income. Suppliers decide the rate, the contract length and the other terms. The only rule on price is that it must always be above zero. Ofgem’s advice is to shop around for the tariff that suits you, and it publishes a list of the suppliers taking part each year.
Payments are worked out from export meter readings, so you’ll need a meter that records what leaves the building. For most firms with business solar panels, export income is a bonus on top of the units they avoid buying. Businesses that plan around export income alone tend to be disappointed.
The rules here may shift. The Energy Independence Bill, introduced on 4 November 2026, includes powers to remove certain charges on electricity that’s sent back to the grid, including from battery storage. It isn’t law yet.
Do business solar panels affect your business rates?
In England, not until 2035. Regulations that came into force on 1 April 2022 changed how plant and machinery is valued for rating. For any day before 1 April 2035, equipment used to generate or store power from solar is left out of the valuation. The same regulations cover the storage and power equipment behind electric vehicle charging points.
In plain terms, fitting business solar panels or a battery shouldn’t push up your rateable value in England during that period. Business rates are handled differently in Scotland, Wales and Northern Ireland, so check locally if you’re based there. The Valuation Office Agency can confirm how your own property is assessed.
What should you check before installing business solar panels?
Start with who owns the roof. If you lease the building you’ll need the landlord’s permission, and the lease should have enough years left for the system to pay back.
Then ask about the grid connection. Larger systems need the local network operator’s agreement, and some areas have limits on how much you can export. The Redbourn project had to be designed around strict export limits, which is one reason it has a battery.
Finally, look at your energy contract. Business solar panels cut the units you buy, but you’ll still need a supplier for early mornings, evenings and dull weeks. If your contract is up for renewal, tell suppliers your usage is about to fall so the quotes reflect it. Our guides to comparing business electricity rates and fixed, variable and deemed business energy deals cover what to look for.
If you’re also thinking about chargers for vans or staff cars, the two projects share a lot of groundwork. Our guide to the workplace EV charging grant explains the funding side.
Frequently asked questions about business solar panels
- Can a business get paid for exporting solar power?
- Yes. Ofgem’s Smart Export Guarantee covers installations up to 5MW in Great Britain. Suppliers set the rate, which must be above zero.
- Do business solar panels increase business rates?
- In England, solar and battery storage equipment is left out of rating valuations for any day before 1 April 2035. Other nations have their own rules.
- Do you still need an energy supplier with solar panels?
- Yes. Solar covers part of your daytime use. You’ll still buy grid power at other times, so the contract rate still matters.
- Is battery storage worth adding?
- It lets you use solar power after dark and can help where export is limited. Whether it pays depends on your usage pattern and the installed cost, so ask for quotes with and without one.
Sources
- Ofgem, Smart Export Guarantee (SEG), read 11 November 2026: the launch date, the 5MW limit, who sets rates, the above zero rule, export meter readings and the advice to shop around.
- The Valuation for Rating (Plant and Machinery) (England) (Amendment) Regulations 2022, in force 1 April 2022: the exception for renewables and charging point equipment for days before 1 April 2035.
- The Energyst, Leisure centre cuts electricity costs by 61% with rooftop solar plus storage system, published 6 November 2026: the Redbourn Leisure Centre system size, forecasts, funding, on site use and export limits.
- GOV.UK factsheet, Removing charges to unlock energy flexibility, published 4 November 2026: the powers on charges for exported electricity.
Checked 11 November 2026. Ofgem’s page shows no published or updated date.
