Good Energy is calling on the government to extend Business Rates Improvement Relief for renewable energy projects to help unlock the solar PV potential of over one billion sq ft of commercial roof space across Britain.
The renewable energy company says a longer-term incentive could give businesses greater confidence to invest in rooftop solar and other clean energy upgrades, strengthening the financial case for retrofitting existing commercial properties.
Under the current system, eligible improvements can benefit from Improvement Relief for one year. The government has committed to reviewing the relief ahead of its planned expiry in 2029, providing an opportunity to strengthen incentives for businesses investing in renewable-energy improvements to their properties.
Research from Cushman & Wakefield estimates that Britain's industrial and logistics buildings have more than one billion square feet of usable rooftop space for solar, with the potential to generate over 36,000 GWh of electricity a year – powering nearly 14 million homes a year.
Yet research from the UK Warehousing Association suggests that only around 5% of UK warehouses currently have solar installed, meaning the vast majority of that one billion square feet of potential rooftop space remains untapped.
The government has already acted to improve the energy performance of new commercial buildings, with the Future Homes and Buildings Standards coming into force for most buildings in England on 24 March 2027, subject to transitional arrangements.
The next challenge is ensuring that the much larger stock of industrial and logistics buildings already standing is not left behind. For the existing warehouse estate, the UK Warehousing Association has identified grid connection delays, structural considerations, insurance requirements, lease restrictions and a lack of alignment between landlords and tenants as persistent barriers to solar deployment.
Overcoming those barriers could allow owners and occupiers to turn currently unused roof space into an asset capable of reducing electricity costs and increasing the amount of renewable power generated on site.
Carl Hogg, Managing Director of Services at Good Energy, said: "We have spent a lot of time debating how to make new buildings greener, but there is an enormous clean-energy opportunity sitting above businesses that are already operating today.
"The opportunity is particularly compelling for businesses consuming large amounts of electricity during the day, because power generated on the roof can be used directly on site.
"The technology and commercial case are already there. What we need to focus on now are the practical barriers stopping projects from getting off the ground, whether that is the relationship between landlord and tenant, the condition of the roof, finance or difficulties around connecting to the grid.
"Extending the relief period for qualifying renewable energy projects would strengthen the financial case for retrofitting existing commercial buildings, unlocking underused rooftop space and supporting the UK's clean power ambitions at a time when every available roof should be helping generate home-grown energy."
