Why Tenants Ask Us About Solar Panel Installation
We speak to commercial tenants regularly who want to reduce their energy costs, meet sustainability targets or simply take control of their energy supply.
You may assume that renting your building means solar panel installation is not an option. In most cases, they are wrong. The route to solar energy as a tenant is more involved than it is for an owner-occupier, but it is not closed. It requires a conversation with your landlord, a clear understanding of what your lease does and does not allow, and a commercial structure that works for both parties.
SPI Renewables helps tenants navigate this process. We can advise on what to ask for, how to present the case to your landlord and what a workable arrangement looks like in practice. And if your landlord is open to the conversation, we are well positioned to work with them on the installation.
Solar Panel Installation for Tenants: What Your Lease Allows — and What It Does Not
Before any conversation with your landlord, it is worth understanding what your lease actually says about alterations to the property. Most commercial leases require landlord consent for structural alterations. Solar panel installation on a leased roof almost certainly falls into this category.
Your lease may also address who is responsible for the roof structure, what happens to fixtures and improvements at the end of the tenancy, and whether there are any restrictions on energy supply arrangements. Understanding these provisions before approaching your landlord puts you in a stronger position for the conversation.
SPI does not provide legal advice. We recommend tenants review their lease with a qualified solicitor before approaching their landlord, particularly where the remaining lease term is less than ten years.
Renewable Industry Certifications
How Tenants Can Proceed with Solar Panel Installation
Landlord Installs, Tenant Benefits
The most straightforward arrangement. Your landlord installs the solar system, owns the asset and either reduces your energy costs directly or sells you the generated electricity at a rate below your grid tariff. SPI can work with your landlord on this arrangement. Our landlord page sets out the case from their perspective.
Tenant-Funded Installation With Landlord Consent
Where your landlord is willing to grant consent but not fund the installation, you may be able to fund the system yourself and negotiate terms around ownership, lease extension and what happens to the asset at the end of the tenancy. This requires careful legal structuring but is a workable approach in the right circumstances.
Power Purchase Agreement
How to Approach Your Landlord About Solar Panel Installation
The most common reason commercial tenants do not pursue solar panel installation is that they do not know how to start the conversation with their landlord. Here is a straightforward approach.
Lead with what is in it for them. A solar installation improves the energy performance credentials of their asset, which is increasingly relevant to property value and future lettability. It demonstrates a commitment to the building that benefits both parties. And if they fund the installation, they own an income-generating or cost-reducing asset that transfers to the next tenant.
Be specific about what you are asking for. Landlord consent for a survey and feasibility assessment is a low-commitment first step. You are not asking them to commit to an installation. You are asking them to understand what is possible.
Share the landlord page. SPI has written a dedicated page for commercial landlords that sets out the case from their perspective and answers the questions they are likely to ask. It is a useful starting point for a landlord who has not considered solar on their commercial property portfolio.
If your landlord is receptive, SPI can be involved in the conversation from the outset, presenting the feasibility findings directly and advising on how a workable commercial arrangement might be structured.
