Rooftop Solar Leases for Commercial Landlords

A commercial roof, especially on a large warehouse or industrial unit, can host solar panels. There are two broad models: generate and use or sell the power yourself, or lease the roof to a solar operator. Each has trade-offs.

Two models

• Own the system: you fund and own the panels, using the power in common parts, selling it to tenants, or exporting it. You keep the returns and can improve the building's EPC, but you carry the cost and the maintenance.
• Lease the roof: a solar operator installs and owns the system and pays you a rent or a share, sometimes offering the building cheaper power. Lower effort and no capital outlay, but you give up most of the upside and tie up the roof for a long term.

The lease points that matter

• Term and access: solar leases are long, often 20 to 25 years, with operator rights of access. Consider how that affects a future sale or redevelopment.
• Roof responsibility: who is responsible for the roof structure, repairs and any damage caused by the installation.
• Removal and end of term: what happens to the panels at the end, and who pays to remove them.

EPC and net-zero angle

Under the updated energy assessment methodology, on-site generation is weighted more favourably, so solar can help lift a commercial EPC rating, which matters for MEES.

Take advice

Roof strength, lease terms, tax and the interaction with tenants all need checking. Use a solicitor and a structural and solar adviser before committing. Framework guidance, so verify the specifics.

Should I own rooftop solar or lease the roof?

Owning keeps the returns but carries the cost and maintenance; leasing the roof to an operator gives rent with little effort but most of the upside goes to them.

How long are rooftop solar leases?

Usually long, often 20 to 25 years, with operator rights of access, so consider the effect on a future sale.