Calls for longer business rates relief to unlock commercial roof space for solar

A renewable energy supplier is calling on the government to extend Business Rates Improvement Relief for renewable energy projects to help unlock access for solar across Britain’s existing commercial buildings.

Good Energy says a longer-term incentive could give businesses greater confidence to invest in rooftop solar and other clean energy upgrades, strengthening the financial case for retrofitting existing commercial properties.

Under the current system, eligible improvements can benefit from Improvement Relief for one year. The government has committed to reviewing the relief ahead of its planned expiry in 2029, providing an opportunity to strengthen incentives for businesses investing in renewable-energy improvements to their properties, Good Energy says.

Research from Cushman & Wakefield estimates that Britain’s industrial and logistics buildings have more than one billion square feet of usable rooftop space for solar, with the potential to generate over 36,000 GWh of electricity annually – powering nearly 14 million homes a year.

But Good Energy cites research from the UK Warehousing Association that suggests only around 5% of UK warehouses currently have solar installed, meaning the vast majority of that the billion square feet of potential rooftop space remains untapped.

The government has already acted to improve the energy performance of new commercial buildings, with the Future Homes and Buildings Standards coming into force for most buildings in England on 24 March 2027, subject to transitional arrangements. The changes mean new warehouses and other non-domestic buildings will need to be designed to higher energy-efficiency standards and lower greenhouse gas emissions, helping ensure new buildings will not require further retrofit to become zero carbon in use as the electricity grid decarbonises.

Good Energy says the next challenge is ensuring that the much larger stock of industrial and logistics buildings already standing is not left behind. For the existing warehouse estate, the UK Warehousing Association has identified grid connection delays, structural considerations, insurance requirements, lease restrictions and a lack of alignment between landlords and tenants as persistent barriers to solar deployment.

Good Energy believes overcoming those barriers could allow owners and occupiers to turn currently unused roof space into an asset capable of reducing electricity costs and increasing the amount of renewable power generated on site.

Carl Hogg, Managing Director of Services at Good Energy, said: “We have spent a lot of time debating how to make new buildings greener, but there is an enormous clean-energy opportunity sitting above businesses that are already operating today.

“Industrial and logistics buildings have huge areas of potentially useful roof space, yet the vast majority still do not have solar installed. The opportunity is particularly compelling for businesses consuming large amounts of electricity during the day, because power generated on the roof can be used directly on site.

“The technology and commercial case are already there. What we need to focus on now are the practical barriers stopping projects from getting off the ground, whether that is the relationship between landlord and tenant, the condition of the roof, finance or difficulties around connecting to the grid.

“With improved incentives, we can unlock far more solar across Britain’s commercial rooftops, turning passive roof space into a source of affordable, home-grown electricity. As the Government reviews Business Rates Improvement Relief ahead of its planned expiry in 2029, it should look to extend and strengthen the scheme for renewable energy improvements. A longer-term incentive can provide businesses with greater confidence to invest in rooftop solar and other clean energy upgrades.

“Extending the relief period for qualifying renewable energy projects would strengthen the financial case for retrofitting existing commercial buildings, unlocking underused rooftop space and supporting the UK’s clean power ambitions at a time when every available roof should be helping generate home-grown energy.”

According to Good Energy, its work at BSH Corby demonstrates the commercial opportunity available from putting existing roof space to work.

The installation consists of 1,200 solar panels, generating approximately 550MWh of renewable electricity annually.

The system is expected to provide approximately £85,000 in annual energy savings, while avoiding 106 tonnes of carbon emissions each year. Between 70% and 80% of the electricity generated is consumed on site, helping the business reduce the amount of electricity it needs to purchase from the grid.

Good Energy says commercial solar installations typically provide a return on investment in under five years.

The firm believes a longer period of Business Rates Improvement Relief for qualifying renewable energy upgrades could form part of a broader effort to accelerate solar deployment across Britain’s existing commercial buildings, while, additionally, greater deployment could allow businesses to generate more of their own electricity, reduce the amount of power they need to purchase from the grid and make productive use of roof space that would otherwise remain unused.