Solar panel loans for business: how they differ from personal and green loans (UK 2026)

Most searches for a solar panel loan come from householders, and most of the products that rank for them are personal loans. A company, a charity or a public body buying a commercial array is in a different market: different rules, different lenders and a different tax result. The differences below decide which loan is worth asking for.

The credit rules differ

Under article 60C of the Regulated Activities Order, a credit agreement above £25,000 taken out wholly or predominantly for business purposes is exempt from the consumer-credit regime (legislation.gov.uk). A personal loan is a regulated agreement. A sole trader or small partnership borrowing less than £25,000 can still be a regulated customer, so the size of the loan changes the paperwork. A limited company is not a consumer, and its loan is assessed as a business credit: accounts, trading history and security rather than a personal credit score alone.

The tax result differs

A householder gets no corporation tax relief on a solar loan. A company that owns the array can claim capital allowances: the Annual Investment Allowance is £1 million (gov.uk), and for most commercial systems it gives 100% first-year relief on the installed cost. Whether that is worth having depends on the rate the company pays: 25% above £250,000 of profit, 19% at £50,000 or less, with marginal relief between (gov.uk). A charity or public body has no corporation tax to relieve, so a loan gives it ownership without the relief; a lease or PPA may then be the better comparison. See capital allowances on solar panels for the claim itself.

The lenders and the products differ

Household solar loans are sold by consumer lenders and installers. Commercial solar is financed by banks, asset finance houses and specialist green lenders, using business loans, hire purchase or leases. The business green loan lender comparison sets out who writes what, and what lenders check lists the documents a credit team reads. The shape of the product also differs: a business loan is judged on the company and the saving it will make, so the roof, the lease term and the electricity the site actually uses matter more than they do for a household.

Which one to ask for

• You pay corporation tax and own the roof: a business loan or hire purchase keeps the allowances with you; compare both with buying from cash.
• You pay no corporation tax (charity, public body, loss-making): compare a lease or PPA, where the funder claims the allowances, with a loan.
• You are a sole trader borrowing under £25,000: check whether the loan is a regulated agreement before you sign.
• You rent the building: settle landlord consent and the lease term first; see the landlord and tenant split.

If you are not sure which of these applies, the commercial solar finance options checker ranks the five routes from six answers, and the six routes compared page sets out the trade-offs in full. This page covers business finance only; for a household installation, take advice from an MCS-certified installer and consumer guidance instead.