Pub solar payback in 2026: cost and tax relief

What solar panels for pubs actually cost in 2026

If you run a pub and you are weighing up solar, the first question is always the same: what does it cost, and how long before it pays for itself? The honest answer is that it depends on the size of the site and the roof you have to work with, but the ranges are well established and it is possible to be specific about where most pubs land.

A pub solar project in 2026 is often priced between about £10,000 and £90,000, as an indicative planning range rather than a quote. That spans a small wet-led local at the lower end and a large roadside dining pub with a sprawling kitchen at the top. In system terms that is roughly a 10 kW to 100 kW array, around 18 to 185 panels across 60 to 600 square metres of roof. A system of that size generates somewhere in the region of 9,000 to 92,000 kWh a year, which is the number that drives your saving.

The reason solar panels for pubs work financially is not the headline cost, it is the way a pub uses electricity. Cellar cooling runs around the clock to keep beer and cask in condition, kitchen extraction and refrigeration build through every service, glass washers and coffee machines cycle through the afternoon, and lighting carries the room from a lunchtime trade into the late evening. That demand lands squarely in the daylight and early-evening hours when panels generate most, so the power you make is used on the premises rather than sold back to the grid at a fraction of its value. Self-consumption is what turns a roof full of panels into a return.

Why payback for a pub often sits at six to seven years

On the planning assumptions used on this site, a pub's simple payback often lands at around six to seven years, after which the electricity that array produces is effectively free for the fifteen to twenty plus years that follow commissioning. That is an indicative range rather than a measured average, and it reflects the fact that a pub is not a flat-load building.

Pub demand peaks around lunch and evening service and dips in the quiet mid-morning and mid-afternoon. That matters for sizing. Filling the roof with panels does not help if half of what they make in the slow afternoon hours only ever gets exported at a low rate. The faster-payback approach is to size a modest array to the genuine daytime cellar, kitchen and lighting baseload, then add EV charging to soak up the midday generation that would otherwise leave the site. Where a pub trades heavily in the evening, a battery stores cheap midday solar for use during service, which lifts self-consumption and shortens payback further.

Two site-specific factors move the cost as well. Older premises often have a constrained single-phase supply that caps system size without a Distribution Network Operator upgrade, and a G99 grid application is required for connections above 16 A per phase (3.68 kW on a single phase). Pre-2000 trade outbuildings frequently carry asbestos cement sheeting that cannot take panels and needs replacing first. Both are exactly the kind of thing a proper survey should catch before a price is agreed, rather than mid-project.

Tax relief is the part that shifts the case most

The single biggest lever on a pub solar business case is not the equipment price, it is how the spend is treated for tax. Solar PV ranks as special-rate plant and machinery, so a pub business paying corporation tax can use the 100% Annual Investment Allowance to deduct the full cost of a qualifying install from year-one profit. For a limited company that can recover up to a quarter of the project value in tax relief in the first year.

One precise point matters here. Because solar is a special-rate asset, it cannot use full expensing. The claim runs through the Annual Investment Allowance, which covers the first £1m of qualifying expenditure at 100%, or through the 50% First-Year Allowance for special-rate spend above that £1m cap. A single free house or a single managed pub sits comfortably inside the £1m cap and is fully expensed in year one. Only when a multi-site estate rollout lifts total spend over the cap does the relief have to be apportioned across the Annual Investment Allowance and the 50% First-Year Allowance. These figures are illustrative and depend on your tax position, so the numbers should be confirmed with your accountant against your own profit and structure. You can read more on the government guidance for capital allowances.

There are other contributors to the case. Any surplus you export is paid for under the Smart Export Guarantee at a supplier-set rate, which at the time of writing ranges from around 3 to 6p per kWh at some smaller suppliers to around 12 to 13p on the better fixed tariffs. And if you are adding chargepoints, the Workplace Charging Scheme covers a large share of the charger cost. Those are covered in full on our funding routes page.

How costs change for an estate

If you run more than one site, the economics improve rather than simply multiply. A managed pub group can design one repeatable template, rooftop PV plus an optional beer-garden canopy and EV charging, then roll it across the estate with standard surveys and standard hardware. That brings portfolio pricing and a phased capital plan, and it means each new site is not re-engineered from scratch. A single tied or leased pub within a pubco or brewery estate adds a landlord-consent and wayleave step, which decides who funds the install and who keeps the saving, but it does not change the underlying cost ranges.

Working out your own number

The honest way to cost a pub is from its meter data, not a roof photo. A sound proposal starts from at least twelve months of half-hourly readings, so the system is sized to the load the pub genuinely draws across the trading week and the seasons, then models self-consumption against export and sets the funding routes side by side. For a sense of where your site sits before you commit to a survey, our cost guide sets out worked numbers for different sizes of pub, and the savings calculator gives a quick first estimate. The same hospitality-led approach is set out for sites with bars, kitchens and service patterns on our pub and restaurant solar page. When you are ready for a precise figure, send an enquiry and we reply by email.