Commercial Solar Loans

Want to install affordable solar to reduce your business’ energy bills by 50-90%? Financing is key to covering the high solar panel, equipment and installation costs which range from £10,000 to over £1 million for commercial systems. Our advisors guide your business to secure ideal commercial solar loans in the UK tailored to your exact needs and property.
Follow a clear step-by-step process developed through financing thousands of commercial solar clients across the country.

 

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commercial solar loans

Step-by-step on how to take out a commercial solar loan

Here is a step-by-step overview on how to take out a commercial solar loan in the UK:

1. Calculate Electricity Requirements – Analyze your recent electricity bills and usage to determine the ideal solar system size to meet your needs while maximizing savings.

2. Evaluate Your Property – Assess your roof or land space for solar panel installation feasibility. Factor in sunlight exposure, orientation, shading and obstruction risks.

3. Research Equipment & Installers – Choose reputable solar panels and equipment along with an experienced commercial solar installer best suited to your project specifications.

4. Review Financing – Compare loan providers and programs to find the best rates and terms tailored to your business. Consider available tax credits and incentives.

5. Submit Proposals & Applications – Provide electricity data, equipment quotes, business details and financing applications to lenders and connect with solar suppliers.

6. Install & Connect SystemOnce financing and permits are secured, your solar installer can complete the system installation and grid connection works.

7. Activation & RepaymentHave your system inspected by building control and utility. Then begin generating solar energy and repaying your commercial loan over time!

Qualifying for Financing

In assessing loan applications, lenders closely evaluate both the creditworthiness of the business and the technical solar specifications.

Key qualification benchmarks typically include:

  • Strong business credit score and financial track record
  • Consistent revenues over £1 million per annum
  • Company director guarantees may be requested
  • Ownership or long lease on the commercial property
  • Detailed solar system design specifications
  • Projected solar energy output in kWh
  • Firm equipment costs and installation quotes
  • Licenced contractor doing the solar works

By meeting these solar loan eligibility criteria, businesses demonstrate reliability in repaying debt, a robust underlying asset through property ownership, and a sound financial project underpinned by the solar system specifics.

upfront costs for a commercial solar power system

Overview of the upfront costs for a commercial solar power system

Here is an overview of the typical upfront costs for a commercial solar PV system in the UK:

For a small-to-medium sized 50kW system, upfront costs often range from £50,000 to £100,000. 

Larger 250kW commercial systems usually cost between £300,000 and £500,000 prior to any incentives. 

Benefits for going solar 

Cost Savings

  • Lock in lower electricity rates for 20-25 years
  • Cut monthly energy bills by 40-90%
  • Achieve full return on investment within 3-5 years
  • Hedge against rising fossil fuel energy costs

Sustainability & Reputation

  • Reduce overall carbon footprint
  • Meet environmental, social and governance (ESG) commitments
  • Enhance public image and marketing opportunities
  • Demonstrate corporate social responsibility

Resilience & Independence

  • Produce your own clean energy
  • Lower reliance on the national grid
  • Keep essential business operations running during power cuts
  • Take control over electricity expenditure

Other Benefits

  • Tax reliefs and government incentives
  • Low maintenance renewable energy source
  • Silent rooftop operation with no noise or emissions
  • Enhance property value and rental income
  • The financial, environmental and resilience benefits strongly support the commercial case for solar in the UK. Our team can advise how to access ideal financing to unlock these advantages for your company right away.

Types of Loans Available

  • Term Loans – Traditional loan for a fixed period, usually 10-15 years for solar. Monthly repayments of principal plus interest.
  • Lines of Credit – Revolving credit facility allowing multiple drawdowns up to a set limit over 5-10 years. Only pay interest on amounts used.
  • Power Purchase Agreements (PPAs) – Solar installer owns the system while business pays a fixed rate for the power produced, typically over 15-25 years.
  • Property Assessed Clean Energy (PACE) Loans – Loans tied to a property rather than an individual borrower. Repaid via property taxes and passed to new owners if sold or transferred.

Loan Terms and Interest Rates:

  • Interest Rates – Usually between 4-6% for commercial solar loans in the UK depending on applicant’s credit rating.
  • Loan Period – Can extend up to 25 years so monthly payments are less than energy savings. Helps improve ROI.

Eligibility and Qualifications:

  • Credit History – Most lenders require a strong credit score and consistent repayment history demonstrating low lending risk.
  • Business Revenue – Annual turnover thresholds apply, often £2 million or more for term loans and PPAs.
  • Property Ownership – Commercial building freehold or long leasehold helps secure loans against the property itself in some cases.

Keep in mind to check your credit score when applying for solar loans.

If you have a good credit score remeber that you should expect a low interest rate of atleast under 6% APR.

 

Interest Rates

  • Rates from 4% up to 6% are typical
  • Lower rates of 3-4% may be available for those with excellent credit
  • Interest often fixed for the full loan term
  • Variable rates also offered but less common

Incentivized rates under 2% are sometimes available through green energy programs. But strict criteria on system size and equipment apply.

Loan Period:

  • Up to 25 year terms accessible for commercial solar loans
  • Loan period can match expected system lifespan
  • Longer terms mean lower monthly repayments
  • This allows energy savings to exceed loan repayments each month
  • Helps project cash flow and return on investment

For large systems financing over £200k, lenders usually require at least 15-20 year terms with 25 year loans reserved for major installations financed above £500k. This ensures the debt can be effectively serviced through solar energy savings.

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