Commercial solar for hotels
Last updated 27 July 2026
A UK hotel with a decent roof typically fits a 50-150 kWp solar system, generating roughly 950 kWh per kWp each year.3 Because a hotel's load is evening- and weekend-weighted, self-consumption without a battery is usually toward the lower end of the commercial range, so a 100 kWp system might offset around £15,000-£18,000 of electricity a year and pay back in roughly 4-7 years. These are estimates for a typical site; your figures depend on your occupancy, load, roof and tariff.
Figures are estimates for a typical commercial site, based on 2026 UK costs and average conditions. Your actual cost, savings and tax position depend on your premises, load profile and advisers, and are confirmed by a site survey.
Roof area and system size for a hotel
As a planning rule, commercial rooftop solar needs about 7 m² of usable roof per kWp installed, and each kWp produces roughly 950 kWh a year in the UK.3 Hotels vary enormously, so the right size is set by three things: the clear, unshaded roof you have, your annual electricity use, and how much of the generation you can use on site.
- Roof space — flat roofs over function rooms, kitchens and corridors are ideal; pitched roofs work if they face broadly south, east or west. Plant, rooflights, dormers and shading from taller wings all reduce the usable area.
- Electricity use — UK hotels typically use 10,000-15,000 kWh of electricity per room per year across lighting, HVAC, catering, laundry and hot water.5 A 60-room hotel can therefore draw 600,000-900,000 kWh a year, so even a large array usually offsets only part of the bill.
- Ground-mount — a country-house or resort hotel with spare land can consider a ground-mounted array, which removes roof constraints but adds groundworks and planning steps.
A useful anchor: a system that fills about 700 m² of roof is roughly 100 kWp. See the matching detail pages for 50 kW, 100 kW and 250 kW, or start at the commercial solar hub.
Load profile and realistic self-consumption
Self-consumption is the share of what you generate that you use on site rather than export. It matters because every unit you use yourself is worth the full retail price (around 26-28p in 20261), while exported units earn a Smart Export Guarantee rate that is typically only 4-15p per kWh on flat tariffs.4
Commercial self-consumption typically runs 60-85% depending on sector. A hotel sits toward the lower end of that band without storage, because its demand is evening- and weekend-weighted — check-ins, restaurant service, bar, rooms and heating peak after the sun has faded. Solar generation peaks at midday, which coincides with daytime housekeeping, laundry, kitchen prep, reception and HVAC, but a meaningful slice of a hotel's daily load lands outside solar hours.
These percentages are estimates for a typical site; your real self-consumption depends on occupancy patterns, whether you run electric heating or hot water, and your kitchen and laundry schedule.
Typical bills, estimated savings and a cost table
The table below sizes several systems against a hotel-style load. It assumes a UK yield of 950 kWh/kWp,3 60% self-consumption (no battery), an imported electricity price of 27p/kWh1 and an export rate of 6p/kWh.4 Installed costs fall with scale, from roughly £1,100-1,300/kWp at 10 kW down to around £650-750/kWp at 250 kW; all figures are shown ex-VAT.
| System | Roof (approx) | Install cost (ex-VAT) | Annual generation | Est. annual saving | Simple payback |
|---|---|---|---|---|---|
| 10 kWp | 70 m² | £12,000 | 9,500 kWh | £1,770 | ~6.8 yrs |
| 50 kWp | 350 m² | £45,000 | 47,500 kWh | £8,835 | ~5.1 yrs |
| 100 kWp | 700 m² | £82,000 | 95,000 kWh | £17,670 | ~4.6 yrs |
| 250 kWp | 1,750 m² | £180,000 | 237,500 kWh | £44,175 | ~4.1 yrs |
Savings combine two streams: self-consumed units valued at your import price, plus exported units at your SEG rate. A higher self-consumption figure (with a battery or a stronger daytime load) shortens payback; a lower one lengthens it. These are estimates for a typical site, and your figures depend on your load, roof and tariff.
Payback, ROI, VAT and tax relief
On the assumptions above, a hotel array typically pays back in roughly 4-7 years and then delivers largely free daytime electricity across a panel design life of 25 years or more, which is why the lifetime return on capital is usually strong. Two tax points change the real cash picture, and both should be confirmed with your accountant.
- VAT is 20% on commercial solar. The 0% VAT rate applies to domestic installations only; commercial systems are standard-rated. A VAT-registered business normally reclaims that VAT, so it is a cash-flow item rather than a true cost.6
- Capital allowances. Solar PV is treated as special-rate plant, so it does not qualify for 100% full expensing (which is main-rate). Companies can instead claim the permanent 50% first-year allowance on special-rate assets, with the balance written down at the special-rate pool rate thereafter. The Annual Investment Allowance may also apply.2
If you would rather avoid the capital outlay, a power purchase agreement (PPA) lets a third party fund and own the system while you buy the electricity. Compare the two routes on our buy vs PPA page.
What makes a hotel different from other sectors
Every sector has a different solar shape, and matching the system to the load is what drives the return. A hotel is one of the more nuanced cases.
| Sector | Solar characteristic |
|---|---|
| Warehouse | Large unshaded roof, modest but steady daytime use — high self-consumption. |
| Factory | Very high daytime demand that soaks up almost all generation. |
| Farm | Ground-mount option, income diversification and high self-use. |
| School | Summer holidays cut self-use; export or battery becomes important. |
| Retail | Daytime trading hours match generation well. |
| Hotel | Evening- and weekend-weighted load, so a battery often improves the return. |
For a hotel specifically: your daytime housekeeping, laundry, kitchen prep and air conditioning provide a solid base load for solar, but the evening peak means storage frequently earns its keep. Seasonality matters too — summer generation is highest exactly when leisure occupancy and cooling demand tend to rise, which is a helpful alignment. If you run electric hot water or heat pumps, more of your load shifts into hours a battery can serve.
Your next step
The single biggest variable in every number on this page is your own site: your roof, your occupancy, your tariff and your load shape. The way to turn these estimates into a firm quote is a site-specific design from an MCS-certified commercial installer, including a proper self-consumption model with and without a battery.
PlutoHome is a neutral introducer. We are not an installer and we do not install, finance or own systems. We match your hotel with one MCS-certified commercial installer suited to your building and load, rather than handing your details to five firms. If you would like help deciding what to look for first, read how to choose a commercial installer.
Request a commercial solar quote and we will introduce you to a single, MCS-certified installer for a site-specific assessment.
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Commercial solar — your questions
What size solar system does a UK hotel need?
It depends on your usable roof and your load, but many hotels fit 50-150 kWp. As a rule of thumb, allow about 7 m² of clear roof per kWp, and expect roughly 950 kWh per kWp of generation a year. A 100 kWp system fills around 700 m² of roof. Even a large array usually offsets only part of a hotel's total electricity, because hotels use 10,000-15,000 kWh per room per year.
Do hotels pay 0% VAT on solar panels?
No. The 0% VAT rate applies to domestic installations only. Commercial solar, including hotels, is standard-rated at 20% VAT. A VAT-registered business normally reclaims that VAT, so it is usually a cash-flow item rather than a permanent cost. Confirm your position with your accountant.
What is the payback on solar for a hotel?
On typical 2026 assumptions, payback is often around 4-7 years, with larger systems at the shorter end because installed cost per kWp falls with scale. This is an estimate for a typical site; your actual payback depends on your self-consumption, your import and export tariffs, and whether you add a battery.
Why is a battery often worth it for a hotel?
A hotel's demand is evening- and weekend-weighted, while solar peaks at midday. Without storage, self-consumption is typically around 55-65%, meaning more of your generation is exported at a low rate. A battery stores midday surplus for the evening peak and can lift self-consumption toward 80% or more, improving the return. Whether it pays depends on the gap between your import and export prices.
Can a hotel claim tax relief on solar panels?
Solar PV is special-rate plant, so it does not qualify for 100% full expensing. Companies can instead claim the permanent 50% first-year allowance on the special-rate expenditure, with the balance written down at the special-rate pool rate afterwards. The Annual Investment Allowance may also apply. Verify the treatment and timing with your accountant.
How much can a hotel earn from exported solar electricity?
Exported units are paid under the Smart Export Guarantee, with flat rates typically in the region of 4-15p per kWh in 2026, set by each supplier rather than a regulator. Because export rates are much lower than the retail price you pay for imported electricity, using power on site is worth far more than exporting it.
Is PlutoHome the installer?
No. PlutoHome is a neutral introducer. We do not install, finance or own systems. We match your hotel with one MCS-certified commercial installer suited to your building and load, rather than passing your details to several firms.
Sources
- Quarterly Energy Prices, June 2026 (non-domestic electricity) — DESNZ (accessed 2026-07-27)
- Full expensing and the 50% first-year allowance for special rate assets — GOV.UK / HMRC (accessed 2026-07-27)
- Solar panels guidance and generation estimates — Energy Saving Trust (accessed 2026-07-27)
- Smart Export Guarantee (SEG) — Ofgem (accessed 2026-07-27)
- How much energy does a hotel use? (per-room electricity benchmark) — Utility Bidder (accessed 2026-07-27)
- VAT on energy-saving materials and heating equipment (Notice 708/6) — GOV.UK (accessed 2026-07-27)
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