Commercial Solar Finance Calculator
Estimate commercial solar hire purchase payments, electricity savings and long-term cashflow for systems from 30kWp to 250kWp. Compare finance with buying outright. No email required.
Year 1 Cash Position Before Tax
Assumes sufficient taxable profits, enough unused AIA, and that the spend qualifies. On hire purchase, if the panels count as a fixture of the building, relief can follow the capital paid each year instead of arriving in full in year one, so check the timing with your accountant. Not included in the cumulative cash figures below. This is an illustration, not tax advice.
The calculator uses standard assumptions. For a real proposal, send us your installer quote, annual electricity usage and business details and we can structure the funding against our lender panel.
Get A Tailored Commercial Solar QuoteIllustration only, not a quote, offer or tax advice, subject to survey and funder credit approval. Avro arranges commercial business finance. The regulatory treatment of agreements involving individuals, sole traders or partnerships depends on the borrower, amount of credit and agreement structure. Long-term figures hold electricity prices, export rates and running costs flat for 25 years and assume no future increases, while finance payments stay fixed.
How To Use This Calculator
Set your system size
Enter estimated installed kWp, from 30kWp to 250kWp.
Enter your installation and energy figures
Use your installer quote and annual electricity usage where available.
Choose finance or cash
Adjust deposit and term to see the effect on cashflow.
Review the cash position
Compare finance cost, solar benefit and cumulative cash position over 25 years.
What This Calculator Assumes, And Why
All assumptions are editable where shown as a slider, and clearly disclosed where fixed.
| Input | Default | |
|---|---|---|
| Generation | 850 kWh/kWp in Year 1 (conservative UK-wide illustration) | |
| Panel degradation | 0.5% per year, applied to generation only | |
| Import electricity | 25p/kWh, editable 10-45p | |
| Export rate | 6p/kWh, editable 0-15p | |
| Running costs & insurance | £12 per installed kWp per year | |
| Finance rate | 8.5% illustrative nominal annual rate, not an APR, payments in advance | |
| VAT | 20%, treated as recoverable or not per your selection | |
| Inverter replacement | £70 per installed kWp, indicative single replacement at Year 12 | |
| Price changes | None assumed: electricity, export rate and running costs held flat for 25 years; hire purchase payments fixed | 0%, figures shown in today's money |
| Annual Investment Allowance | Calculated separately, not included in cumulative cash figures. On hire purchase, timing can differ if the panels are a building fixture |
Read our full Commercial Solar Finance Guide, which covers hire purchase, finance lease, operating lease, PPA, cash purchase, the Annual Investment Allowance, VAT, leasehold property considerations and lender criteria in full.
Calculator FAQs
Is this commercial solar finance calculator free to use?
Yes. Results are shown immediately, with no email address or login required.
How accurate is the installation cost estimate?
It's based on 2026 UK commercial market pricing and is a starting estimate. Overwrite it with a real installer quote for an accurate figure.
Does the calculator include VAT?
Yes. VAT is shown separately at inception. If your business can recover VAT, it's treated as a temporary cash outlay rather than a permanent cost. If VAT is not recoverable, it's added to the capital cost.
Does the calculator include the Annual Investment Allowance?
Yes, shown as a potential tax reduction figure, since it depends on the business having sufficient taxable profits and unused allowance.
Why doesn't it calculate lease or PPA?
Lease and PPA pricing depends on contract-specific terms, initial rentals, residual values and electricity rates that cannot be responsibly modelled with one generic formula. See our full guide for how these routes compare.
What generation assumption does it use?
850 kWh per installed kWp in year one, a conservative UK-wide illustration, with 0.5% annual panel degradation applied. Actual output depends on location, orientation, pitch and shading.
Why does it ask for annual electricity consumption?
Self-consumption can't exceed what the site actually uses. Entering your annual kWh usage from your bills lets the calculator cap the self-consumption estimate realistically.
Are the figures shown a quote?
No. All figures are illustrative only, not a quote, offer or tax advice, subject to survey and funder credit approval.