The short answer
There are no genuinely free solar panels for UK businesses. "Free solar" offers are funded Power Purchase Agreements — a funder pays for and owns panels on your roof, and you buy the power at 10–17p per kWh versus 25–30p from the grid — or roof rentals, where you're paid for the space instead. £0 upfront, but you don't own the system.
Search "free solar panels for business" and you'll find plenty of firms happy to leave the impression of free electricity. The reality is more useful than the pitch: for the right building, funded solar is a legitimate way to cut your power price from day one without spending capital. For the wrong building it doesn't exist at all — funders are selective. This guide explains both models, who qualifies, and what the "free" actually costs you.
The two ways businesses get solar with no upfront cost
Every credible no-capital offer is one of two structures. Both put a funder's panels on your roof; they differ in what you get out of it.
| Structure | You pay | You receive | Who owns the system | Typical term |
|---|---|---|---|---|
| Funded PPA | £0 upfront; you buy the power at 10–17p/kWh | Cheaper daytime electricity than the 25–30p grid rate | The funder | 15–20 years (10–25 range) |
| Roof rental | £0 — nothing | Rent of £10,000–£20,000/yr for a large roof | The investor | 20–25 years |
With a funded PPA, the saving is the gap between the PPA rate and your grid rate on every unit you use. With a roof rental you keep buying your electricity as normal and the roof simply becomes an income line — a route mostly relevant to landlords with big, empty roofs. The full comparison against buying outright and leasing is on our financing guide.
Who qualifies for fully funded solar
Funders make their return by selling power over two decades, so they underwrite your business the way a lender would. The buildings that attract funding share a profile:
- A large roof — funders want scale, because their fixed costs (legals, grid application, installation) only pay off on bigger systems. Warehouse, factory and large agricultural roofs qualify; a corner-shop roof does not.
- Strong daytime electricity demand — the funder needs you to buy most of what the panels generate. Cold stores, manufacturers and daytime-heavy operations fit; an evening-only venue doesn't.
- A creditworthy business — you are the customer for 15–20 years, so expect a credit assessment. Weak covenants kill funded deals.
- Security of tenure — you need to own the building or hold a lease at least as long as the contract, plus landlord consent if you're a tenant.
- A sound roof — at least the contract term's worth of life left. Re-roofing mid-contract with someone else's panels on top is expensive.
If your business is small, 'free' probably isn't on offer
What "free" actually costs you
A funded deal moves three valuable things from you to the funder, and it's worth pricing them before you sign:
- The tax relief. The owner of the system claims the capital allowances. Under a PPA that's the funder — you give up the Annual Investment Allowance's 100% year-one deduction, worth about 25% of project cost at the 25% corporation tax rate.
- The long-term savings. Buying outright typically pays back in 4–7 years, after which the power is close to free for the rest of the system's 25-year-plus life. Under a PPA you pay for every unit for the whole term. Our payback and ROI guide puts numbers on the gap.
- Control of your roof. The funder takes a lease or legal charge over the roof space for 15–25 years, which your mortgage lender must usually consent to and any future buyer inherits.
Red flags in funded solar offers
Walk away, or at least negotiate, if you see any of these:
- "Free electricity" in the pitch — a PPA sells you electricity. If the seller won't say the rate and the escalation formula upfront, stop.
- Uncapped inflation escalation — most rates rise with CPI. A high fixed escalator (say 3–5% compounding) can push the PPA rate above grid prices in later years.
- Vague end-of-term clause — you want a clear, nominal-fee transfer of the system, not an obligation to extend or pay for removal.
- No transfer provisions — if the contract is silent on what happens when you sell the building, your solicitor will earn their fee later.
- Pressure to skip the comparison — a funded offer should stand up next to an outright-purchase quote for the same roof. Our quote comparison checklist shows how to judge them like-for-like.
Free solar vs grants vs buying: which route fits
| Route | Upfront cost | Best for | The trade-off |
|---|---|---|---|
| Funded PPA (“free panels”) | £0 | Large roofs, strong daytime demand, no capital | No ownership, no tax relief, 15–20-yr power contract |
| Roof rental | £0 (you're paid) | Landlords with big unused roofs | Income only — your electricity bill doesn't change |
| Grants + tax relief, buy outright | Full cost, ~25% back via AIA | Businesses with capital or asset finance | Capital tied up until the 4–7-yr payback |
If it's the grant route you were actually searching for, the honest picture — the tax reliefs that do the heavy lifting and the regional pots that exist — is on our solar grants for business guide.
Frequently asked questions
Are free solar panels for businesses genuine?+
The offers are genuine, but the word 'free' means free of upfront cost, not free electricity. A funder pays for, owns and maintains the panels on your roof, and you buy the power they generate at a fixed rate — typically 10 to 17p per kWh against 25 to 30p from the grid — over a 15 to 20 year contract. It is a financing arrangement called a Power Purchase Agreement, not a gift or a grant.
Can a small business get free solar panels?+
Usually not. Funders make their return from selling you power over 15 to 20 years, so they want scale — large roofs, six-figure systems and strong daytime electricity demand. A small business with a modest roof is rarely attractive to a PPA funder. For smaller sites the realistic routes are buying outright, asset finance or a lease, where tax relief through the Annual Investment Allowance returns roughly 25% of the cost.
What's the catch with free commercial solar?+
Three things. You don't own the system, so the funder — not you — claims the capital allowances and any grant. You are committed to buying its power for 15 to 25 years, usually with an inflation-linked rate. And the funder's rights over your roof (a lease or legal charge) can complicate selling or refinancing the building, so your solicitor and any mortgage lender need to see the agreement before you sign.
Is a funded PPA the same as a solar grant?+
No. A grant is money towards a system you own; a funded PPA is a contract where someone else owns the system and sells you its power. There is no universal UK grant for commercial solar — regional schemes offer contributions of roughly £5,000 to £50,000 — and the biggest real support is tax relief, which only applies if you own the panels. Our grants guide covers what actually exists.
What happens to funded panels if I sell the building?+
The agreement stays with the roof. PPA and roof-rental deals are secured by a lease of the roof space or a legal charge, so a buyer inherits the contract and their lender will scrutinise it. Well-drafted agreements include transfer provisions; badly drafted ones can stall a sale. Have a commercial property solicitor review the term, the transfer clause and the end-of-term position before you sign.
What happens at the end of a funded solar contract?+
Typically the system transfers to the building owner for a nominal sum, after which you own the panels and keep all the generation — panels usually still have years of useful life at that point. Some contracts instead offer renewal or removal. The end-of-term clause is one of the most important lines in the agreement, so check it rather than assume.
See what your roof is worth first
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Updated July 2026 · By Taro Schenker, founder of Business Solar Check. We're independent — we don't install solar. Figures are indicative UK averages; your site survey confirms the numbers for your roof.