Can You Install Solar Panels on a Leased or Rented Commercial Building?
- Daniel O'Malley
- Nov 24
- 6 min read
If your business rents its premises, it’s natural to wonder whether solar is even an option. You don’t own the roof, the lease limits what you can do, and there are extra legalities if a third party funds the system.
The good news is that in many cases you can install solar panels on a leased or rented commercial building. You just need the landlord’s permission and the right commercial structure.
This article explains how it works for both tenants and landlords, the funding options available, and the key steps to get a project off the ground.
Why More Tenants Are Looking at Solar
Whether you own or lease the building, the pressures on businesses are the same:
Energy bills are a major cost and difficult to predict.
Boards, investors and customers expect real progress on net zero and ESG.
Staff, clients and partners increasingly favour organisations that are visibly cutting carbon.
On-site solar helps with all three. It can lower electricity consumption from the grid, reduce Scope 2 emissions and demonstrate visible action on sustainability.
The only difference for tenants is that you have an extra stakeholder – the landlord – whose interests and risks need to be managed.
Can You Install Solar Panels If You Only Rent the Building?
In most commercial leases, the landlord (freeholder) still owns the structure, including the roof. As a tenant, you usually have the right to use the premises, but not to make structural changes without consent.
That means you generally cannot just go ahead and install solar panels on a leased commercial building without written permission.
Your lease will normally include an alterations clause that explains:
What kind of works you can do without consent; and
What counts as a “significant” or “structural” alteration that needs the landlord’s approval.
Roof-mounted solar almost always falls into the second category. So the first step is always to review the lease and speak to the landlord.
The positive angle: many landlords are increasingly supportive of solar on their properties – especially where it helps them attract and retain good tenants.
What Landlords Care About When You Ask for Solar
Most landlords are open to the idea of solar panels on a rented commercial property, but they will want certain assurances before they say yes.
1. Protecting the building
Will the roof structure safely support the panels and mounting system?
Do the works respect existing roof warranties and guarantees?
How will weatherproofing, fire safety and access be managed?
2. Managing legal and commercial risk
Who is responsible for maintenance, inspections and repairs?
What happens if the tenant leaves early, assigns the lease or defaults?
Who removes or takes over the system at the end of the lease?
3. Impact on the asset’s value
Does solar make the property more attractive to future tenants?
Will it help meet minimum energy performance standards and improve the EPC rating?
If you can show that solar adds value to the building and that the risks are clearly managed, it becomes easier for a landlord to give permission.
Funding and Ownership Models for Solar on Leased Premises
Once the landlord is open to the idea, the next question is who pays for the system and who owns it. There are three common models.
Tenant-Funded, Tenant-Owned
The tenant pays for the solar panels and usually owns the system for the duration of their lease.
Pros
The tenant captures most of the bill savings.
Strong alignment with the tenant’s ESG and net-zero plans.
Often the simplest option for a single-occupier building with a decent lease length.
Points to agree
A licence to alter from the landlord, clearly describing the works.
Who is responsible for maintenance and insurance during the lease.
What happens at lease end: are the panels removed, or left in place for the landlord or a new tenant?
Landlord-Funded, Landlord-Owned
Here, the landlord invests in the solar system for the building and retains ownership.
They may recover the cost by:
Charging for solar electricity through the service charge or building tariff; and/or
Using it as a long-term investment in the asset, helping with EPC and sustainability obligations.
This can work very well in multi-let properties, retail parks or business parks where the landlord manages shared roofs and common areas such as car parks.
Key Legal Documents You’ll Typically See
The exact paperwork will vary by project and jurisdiction, but for solar panels on a leased commercial building you’ll commonly encounter:
Licence to AlterGranted by the landlord to the tenant, this sets out exactly what can be installed, where, and under what conditions.
Solar Roof Licence or Solar LeaseIf a third-party investor is involved, this document gives them the right to place equipment on the landlord’s property and to access it for maintenance.
Side Letters or Lease VariationsThese may deal with rights of access, cable routes, responsibility for reinstatement at the end of the term, and how any changes to service charge or rent are handled.
You should always recommend that both landlord and tenant seek independent legal advice. A blog can explain the concepts but shouldn’t replace professional guidance.
Practical Considerations for Tenants
Beyond the legal framework, tenants should think about several practical points early in the process.
Lease length and break clauses Solar is a long-term investment. If there are only a few years left on the lease, a large project may be difficult to justify unless there is a strong expectation of renewal or the landlord is leading the investment.
Multi-tenanted buildings If there are several tenants under one roof, you’ll need to decide whether the system serves a single occupier or the whole building. That raises questions about metering, billing and fair allocation of roof space. In these situations, it often works best if the landlord co-ordinates the project.
Operational disruption and access Installation will usually require roof access, scaffolding and some works inside the building. It’s important to agree:
Preferred installation times to minimise disruption.
How maintenance teams will access the roof and electrical equipment in future.
Any health and safety requirements specific to the site.
Benefits for Landlords – How to Pitch the Idea
When you approach a landlord about installing solar panels on a leased commercial building, it helps to frame the conversation as a shared opportunity.
You can highlight that solar can:
Improve the building’s EPC rating and support compliance with future regulation.
Make the property more attractive to high-quality, sustainability-focused tenants.
Help reduce void periods by offering lower energy consumption and stronger green credentials.
In some structures, deliver a new long-term income stream or enhance capital value.
A clear, professionally presented proposal from a reputable commercial solar installer will go a long way towards reassuring the landlord that the project is serious and well thought through.
Step-by-Step – How to Get Solar Approved on a Rented Building
Here’s a simple journey you can share with prospects or follow internally:
Initial feasibility check Confirm that the roof or site is technically suitable and estimate the likely system size and generation.
Lease review Look at the alterations and user clauses in the lease to understand what consents are needed.
Early landlord conversation Approach the landlord with the high-level concept, the benefits for them, and the funding options you’re considering.
Agree heads of terms Decide who will fund the system, who owns it, and what happens if the lease ends or the building is sold.
Detailed design and structural survey The installer completes a full design, roof survey, structural checks and any required grid applications.
Legal documentation Lawyers draft and negotiate the licence to alter, any solar roof licence and the PPA or other commercial agreements.
Installation and commissioning Works are scheduled to minimise disruption to the business, followed by testing, commissioning and handover.
Monitoring and maintenance Set up performance monitoring, reporting and a clear maintenance schedule so the system delivers over the long term.
FAQs – Solar Panels on Leased Commercial Properties
Can I install solar panels if I only rent my commercial building?
Yes, in many cases you can install solar panels on a leased commercial building, but you will need your landlord’s written permission and an agreement on how the system is funded, owned and maintained.
Do I need my landlord’s permission to put solar panels on a leased property?
Almost always, yes. Roof-mounted solar is normally treated as a significant alteration to the building, so it sits outside the minor works you’re allowed to do without consent.
What happens to the solar panels if I move out?
This depends on what has been agreed. In some cases the tenant removes the system and reinstates the roof. In others, the landlord or a new tenant takes over the system, often for a nominal payment or under a revised agreement.
Who owns the solar panels on a rented commercial building?
Ownership depends on the chosen model. The panels may be owned by the tenant, the landlord or a third-party investor. The key is to set this out clearly in the legal agreements so everyone knows their responsibilities.
Conclusion - Can you install solar panels on a leased commercial building?
Installing solar panels on a leased or rented commercial building is absolutely possible – and increasingly common. With the right permissions, clear legal agreements and a funding model that works for everyone, tenants can cut carbon and reduce their exposure to rising energy costs, while landlords can enhance the value and appeal of their assets.
If you’re ready to explore solar for your leased premises, the next step is a feasibility assessment and an early, open conversation with your landlord.
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