Commercial Solar Installation for Businesses

Why Businesses Are Investing in Solar

Commercial electricity prices have increased by over 50% since 2021, and businesses across the North East are turning to solar as a practical, financially compelling way to regain control over their energy costs. Unlike residential installations where homeowners might use 30-40% of their solar generation directly, commercial properties typically consume 70-90% of what their panels produce during working hours. This high self-consumption rate is what makes commercial solar such a strong investment — you are offsetting electricity you would otherwise buy at 25-35p per kWh.

ALPS Electrical designs and installs commercial solar systems for businesses of all sizes across Teesside, the North East, North Yorkshire and beyond. From small workshops and offices through to large industrial units, warehouses and leisure facilities, we provide turnkey installations from initial feasibility through to commissioning, G99 grid connection and ongoing monitoring.

Return on Investment for Commercial Solar

The financial case for commercial solar is stronger than it has ever been. A typical commercial system delivers a return on investment within 3 to 5 years, with the panels continuing to generate free electricity for 25 years or more beyond that point. Here is how the numbers work for a mid-sized business.

A 50kW commercial solar system installed on a warehouse or factory roof typically costs between £35,000 and £45,000 before tax relief. At current commercial electricity rates and with 80% self-consumption, this system will generate annual savings of approximately £10,000-£14,000. That delivers a simple payback of 3-4 years. After payback, the system generates pure profit for the remaining two decades of its operational life.

For larger systems of 100kW or more, the economics improve further due to economies of scale in both equipment and installation costs. We have installed systems up to 200kW on single commercial sites and can design systems to match any roof space and energy demand profile.

Electricity Price Hedging

Beyond direct savings, commercial solar provides an effective hedge against future electricity price increases. Once installed, your solar generation cost is effectively fixed at zero for the lifetime of the system. Every penny increase in grid electricity prices makes your solar investment more valuable. For businesses planning 5, 10 or 20 years ahead, this price certainty is a significant strategic advantage.

Capital Allowances and Tax Benefits

The UK government offers generous tax incentives that significantly improve the financial return on commercial solar investment. Understanding these allowances can reduce the effective cost of your installation by 25% or more.

Full Expensing (130% Capital Allowance)

Under the full expensing regime introduced in the 2023 Autumn Statement and made permanent, companies investing in qualifying plant and machinery — which includes solar panel systems — can deduct 100% of the cost from taxable profits in the year of purchase. For a company paying corporation tax at 25%, this means a £40,000 solar installation effectively costs £30,000 after tax relief. The tax saving is immediate, reducing your corporation tax bill in the same financial year the system is installed.

Annual Investment Allowance (AIA)

For businesses that do not qualify for full expensing (such as sole traders and partnerships), the Annual Investment Allowance allows you to deduct the full cost of qualifying plant and machinery up to £1 million per year from your taxable profits. Solar panels, inverters, mounting systems and battery storage all qualify. Speak with your accountant about which allowance applies to your business structure.

Enhanced Capital Allowances for Energy-Saving Equipment

Solar PV systems are listed on the Energy Technology List, which means they qualify for Enhanced Capital Allowances. This allows businesses to write off the full cost against taxable profits in the first year, improving cash flow compared to standard writing-down allowances spread over several years.

ESOS Compliance

The Energy Savings Opportunity Scheme (ESOS) requires large enterprises (those with 250 or more employees or annual turnover exceeding £44 million) to carry out energy audits every four years. Installing solar panels directly contributes to your ESOS compliance by demonstrating active investment in energy efficiency measures. For businesses approaching ESOS compliance deadlines, a commercial solar installation provides both a tangible reduction in energy consumption and documented evidence of your commitment to energy efficiency.

Commercial Building Types We Work With

We have designed and installed commercial solar systems on a wide variety of building types across the region. Each building presents its own opportunities and challenges, and our survey process is designed to identify the optimal system configuration for your specific property.

Warehouses and Industrial Units

Large flat or low-pitch roofs on warehouses and industrial units are ideal for solar. These buildings typically have expansive, unshaded roof areas that can accommodate systems of 50-200kW or more. The metal profile roofing common on industrial buildings allows for quick, non-penetrative mounting using clamp systems that attach directly to the standing seams. We also assess structural loading to ensure the roof can support the additional weight of the panels and mounting system.

Offices and Business Parks

Office buildings with flat roofs are excellent candidates for solar, and the daytime energy demand profile of an office aligns perfectly with solar generation. Air conditioning, lighting, IT equipment and kitchen appliances all draw significant power during the hours when solar output is highest. We have installed systems on single offices, multi-let business parks and serviced office buildings, with metering solutions to suit different landlord-tenant arrangements.

Retail and Hospitality

Shops, restaurants, hotels and leisure facilities benefit from high daytime electricity consumption that matches solar generation profiles. Refrigeration, HVAC, lighting and cooking equipment are all energy-intensive loads that run during peak solar hours. Our installation at Saltburn Golf Club, documented in our YouTube video series, demonstrates the savings achievable in a hospitality setting.

Schools, Churches and Community Buildings

Public and community buildings often have large, suitable roof areas and can access additional funding streams. Schools in particular benefit from the educational value of visible solar installations alongside the financial savings. We cover school-specific funding and installation considerations in our dedicated solar panels for schools page.

The Installation Process for Businesses

Commercial solar installation follows a structured process designed to minimise disruption to your business operations.

We begin with a free site survey where we assess your roof space, orientation, structural suitability and electrical infrastructure. We review 12 months of electricity bills to understand your consumption profile and design a system that maximises self-consumption. You receive a detailed proposal including system design, projected generation, savings forecast, payback calculation and Capital Allowance benefits.

Once you approve the proposal, we handle the G99 grid connection application to Northern Powergrid (required for all commercial systems), any necessary structural assessments, and the installation schedule. Most commercial installations take 1-2 weeks depending on system size, and we can schedule work around your business hours to avoid operational disruption.

G99 Grid Connection

All commercial solar systems require a G99 application to the Distribution Network Operator (Northern Powergrid in our region). This process involves submitting technical details of the proposed system and receiving approval for grid connection. The G99 process typically takes 8-12 weeks, and we submit the application as early as possible to avoid delays. For systems above 50kW, a more detailed grid study may be required, which we manage on your behalf.

Battery Storage for Commercial Properties

Adding battery storage to a commercial solar system allows you to store excess generation for use during evening or early morning hours, further increasing your self-consumption rate. Commercial battery systems also enable peak shaving — reducing your maximum demand charges by drawing from the battery during peak periods rather than from the grid. For businesses on half-hourly metered supplies with demand charges, the savings from peak shaving alone can justify the battery investment.

We install commercial battery systems from FOX ESS and Solis, ranging from 10kWh to 200kWh and above. The optimal battery size depends on your generation profile, consumption pattern and electricity tariff structure, and we model all of these during the design process.

Monitoring and Maintenance

Every commercial installation includes cloud-based monitoring that allows you to track generation, consumption and savings in real time. We set up alerts for any performance issues so that problems are identified and resolved quickly. We also offer annual maintenance packages that include panel cleaning, system health checks, inverter diagnostics and thermal imaging to ensure your system continues to perform at its best.

Get a Free Commercial Solar Survey

Whether you are a small business looking to reduce overheads or a large enterprise seeking ESOS compliance and significant energy cost reduction, ALPS Electrical can design a commercial solar system that delivers genuine return on investment. Call us on 01642 790 489 or complete the form on this page to arrange a free, no-obligation commercial solar survey. We will provide a detailed proposal with projected savings, payback period and Capital Allowance calculations tailored to your business.