Do solar panels increase business rates in the UK?
Short version: no — not for on-site self-consumption. The April 2023 rating exemption removes a key objection to commercial solar. Here's the detail and the edge cases.
Short answer
A commercial solar system used to power the building it sits on is exempt from business rates through March 2035. Batteries paired with that system share the exemption. Systems designed to export most of their output can still be rated.
The rules in detail
Solar for self-consumption
Since April 2023, on-site solar used to power the same hereditament is exempt from business rates until March 2035.
Solar exporting most generation
Systems primarily exporting to the grid can be assessed as a separate hereditament and rated. The line is roughly 50% self-consumption.
Battery storage
Also covered by the 2023 exemption when paired with on-site renewables — no separate rates uplift for storage that supports self-consumption.
Landlord-owned solar on tenanted roof
The exemption still applies where the electricity is supplied to the tenant of the same building; check the lease and any private-wire arrangements.
FAQ
Do solar panels increase business rates in the UK?
Not for on-site self-consumption. Since 1 April 2023, solar PV and battery storage installed for on-site use have been exempt from business rates in England for 12 years (through March 2035).
Does the exemption apply if I export electricity?
It applies when the majority of generation is used on site. If most of the output is exported (a merchant-style arrangement), the VOA can treat the solar array as a separate hereditament and rate it — get advice before designing an export-heavy scheme.
Does the business rates exemption cover Scotland and Wales?
Scotland has its own equivalent relief through non-domestic rates rules; Wales has similar exemptions for renewable installations. Detail differs — confirm with a local rating surveyor before committing.
Do I need to tell the VOA about a new solar system?
Yes — any material change to a rated property should be notified. In practice for a self-consumption system this is a short form and results in no rateable value change.
Are solar carports treated the same for business rates?
Yes when they serve on-site consumption (staff parking, EV charging for building occupiers). Standalone commercial charging hubs may be assessed differently.