Skip to main content
Solar Strategies
Cost & ROI by system size

What commercial solar costs, by system size

Planning cost ranges, a worked payback example and building fit for four system sizes. Each example is built from published DESNZ prices and PVGIS yield, and every source is linked.

Large flat commercial roof with rows of solar panels and mounting rails

How these figures are built

No official UK statistic covers the installed cost of commercial solar above 50 kW. The cost ranges here are planning ranges. We set them between two official anchors: DESNZ's small-scale median for 2025/26, and the Arup study for DESNZ on large-scale solar. Quotes for a real building will differ.

Payback is simple payback: cost divided by yearly saving. Each example takes yield from PVGIS for a named town, and the electricity price from DESNZ's 2025 averages by size of user.

Average electricity price paid by UK businesses in 2025, by yearly use (DESNZ, excluding VAT and the Climate Change Levy)
Yearly usePence per kWh
20 to 499 MWh28.4
500 to 1,999 MWh27.7
2,000 to 19,999 MWh25.4
20,000 to 69,999 MWh23.9

Source: DESNZ, Prices of fuels purchased by non-domestic consumers, table 3.4.1.

100kW

100kW Commercial Solar

The first step above small-scale: what it costs, and why self-use still decides payback.

Planning cost, payback and best-fit buildings for a 100kWp system, the size where MCS's small-scale standard stops applying.

Planning cost
£75,000 to £110,000 (£750 to £1,100 per kWp, excluding VAT)
Simple payback
About 4 to 11 years on the worked example, before running costs and tax relief
See the full breakdown →
250kW

250kW Commercial Solar

Where daytime load still matters, while the grid application starts to decide the case.

Planning cost, payback and best-fit buildings for a 250kWp system, the size of a large warehouse or business-park roof.

Planning cost
£162,500 to £237,500 (£650 to £950 per kWp, excluding VAT)
Simple payback
About 3 to 8 years on the worked example, before running costs and tax relief
See the full breakdown →
500kW

500kW Commercial Solar

Industrial roofs, where structure needs care and so does the tax allowance, since a 500kWp system uses a large share of it.

Planning cost, payback and best-fit buildings for a 500kWp system on a distribution centre, factory or cold store.

Planning cost
£300,000 to £425,000 (£600 to £850 per kWp, excluding VAT)
Simple payback
About 3 to 8 years on the worked example, before running costs and tax relief
See the full breakdown →
1MW+

1MW+ Commercial Solar

At a megawatt, the grid connection sets the timetable, while the roof is rarely the problem.

Planning cost, payback and best-fit sites for a 1MWp commercial system, where the network operator controls the schedule.

Planning cost
£550,000 to £800,000 for 1 MWp (£550 to £800 per kWp, excluding VAT)
Simple payback
About 3 to 7 years on the worked example, before running costs and tax relief
See the full breakdown →

Which size fits your site?

Roof condition, grid capacity, tariff and load profile each move these figures, because no two sites match. A feasibility study or an ROI model gives you numbers for the actual site.

Last updated · Content maintained by Editorial Team at Y Solar