Solar panels for charities: FAQs

Genuinely "free" solar usually means one of two things. The first is a Power Purchase Agreement (PPA), where a funder pays for and owns the system and you simply buy the electricity it generates at a fixed price below the grid rate. There is no upfront cost, and the savings start from day one. The second is a fully grant-funded installation, where bodies such as the National Lottery Community Fund, the Community Energy Fund or a charitable trust cover the capital cost.

Be wary of consumer-style "free solar" adverts aimed at homeowners, because they rarely fit charities. For most charities the realistic position is a heavily discounted system: 0% VAT removes 20% of the cost automatically, and grants or a PPA can cover much or all of the rest.

In most cases, no. Since April 2022 the installation of solar panels is zero-rated for VAT in Great Britain where the building is used for a relevant charitable purpose (non-business use) or as relevant residential accommodation. That means qualifying charity installations attract 0% VAT, a fifth off the price before any grant is even considered.

The charity provides the installer with a simple VAT declaration confirming the qualifying use. Where a building has mixed charitable and business use, the relief is apportioned. We help you confirm eligibility and complete the paperwork correctly.

The main routes are: the National Lottery Community Fund (community and voluntary organisations); the Community Energy Fund in England, delivered through regional Net Zero Hubs; Local Energy Scotland's CARES scheme in Scotland; rural community building funding via the ACRE network for village halls; and capital grants from charitable trusts and foundations such as the Garfield Weston and Bernard Sunley foundations. Sports clubs can also access Football Foundation and Sport England funding.

These can often be stacked with the automatic 0% VAT saving and Smart Export Guarantee income. The right combination depends on your cause, location and building. Mapping it correctly is the single biggest factor in getting a charity solar project funded, and it's where we spend most of our time.

Most community buildings need a 5-40 kW system. As a guide: a village hall or small charity premises typically needs 5-15 kW costing roughly £6,000-£18,000; a community centre 10-30 kW at £12,000-£35,000; a sports club 15-40 kW at £18,000-£45,000; and a hospice or larger charity HQ 30-100 kW from £35,000 upward. These figures already assume the 0% VAT charity rate.

What you actually pay depends on roof type, access, electrical works and whether you add battery storage. We give a fixed-price proposal after a free desk-based feasibility from your bills and roof plans, with no obligation.

For community buildings, simple payback is typically 6-9 years, after which the electricity is effectively free for the remaining 15-20+ years of the system's life. Buildings with steady daytime use, such as community centres, charity shops, animal rescue centres and hospices, sit at the shorter end because they use more of what they generate. Buildings used mainly in evenings and at weekends, such as village halls and scout huts, sit slightly longer but benefit more from Smart Export Guarantee income and battery storage.

Grant funding shortens payback dramatically, and a PPA removes the upfront cost entirely in exchange for lower but immediate savings.

Trustees should be satisfied on four points: that the project is in the charity's interests and consistent with its objects; that it is properly funded (and that any restricted funds are used appropriately); that the building and any lease permit the works for the system's full life; and that the risks of roof condition, planning and maintenance have all been assessed.

We prepare proposals with exactly this in mind: a clear payback case, a note on funding routes including 0% VAT, confirmation of roof suitability, and a plain-English summary your board can minute. Charity Commission guidance on managing charity property and reserves is the relevant backdrop, and we're happy to present to a trustee meeting.

Rooftop solar on most buildings is permitted development and does not need a full planning application. The main exceptions are listed buildings and properties in conservation areas, national parks or Areas of Outstanding Natural Beauty, where planning permission or listed building consent may be required.

Many village halls and community buildings are unlisted and straightforward. Where consent is needed, we handle the application and design the system sympathetically. We always confirm the planning position before quoting a fixed price.

Most pitched and flat community-building roofs are suitable. The key factors are orientation (anything from east through south to west works well), shading from trees or neighbouring buildings, roof age and structure, and the absence of asbestos. Older village halls, scout huts and rescue-centre outbuildings sometimes have asbestos cement roofs or aging structures that need checking first.

Our free feasibility review uses your roof plans and a remote assessment to give an honest yes or no before any site visit, and we'll tell you plainly if your building isn't a good candidate.

Yes. A Power Purchase Agreement (PPA) lets a third party fund, own and maintain the system while you simply buy the cheaper electricity, with no capital and no reserves required. Community share offers, where a community benefit society raises the money locally, are another well-established no-upfront route, particularly for flagship projects.

Grant funding can also cover most or all of the capital. Many charities combine routes, for example a grant for part of the cost alongside reserves or a community share offer for the balance. We model each option so trustees can compare them on a like-for-like basis.

It depends on how the building is used. The zero rate applies to buildings used for a relevant charitable purpose, meaning non-business charitable use. A charity shop is generally a business activity, so a shop building may not qualify for the relief on its own, whereas a community sports facility run by a charity or CASC for community benefit often does.

This is genuinely case-specific, so we work with your finance team or accountant to confirm the correct VAT treatment before quoting. We never assume it.

From the go-ahead, a typical community-building installation takes a few days to a couple of weeks on site, depending on system size and roof access. The longer part of the timeline is usually beforehand: agreeing funding, securing any grant approvals, and, for systems above roughly 11 kW, the DNO (grid operator) connection application, which can take several weeks.

We run the grant and grid paperwork in parallel so the project moves as quickly as your funding allows, and we install with minimal disruption to your activities and service users.

Very well. Buildings with continuous power demand, such as kennels and catteries with heating and ventilation, or hospices running clinical equipment around the clock, use a high proportion of the electricity they generate, which is exactly what makes solar pay back fastest. These settings typically see 6-7 year paybacks.

Adding battery storage keeps surplus daytime generation for overnight use and adds a layer of power resilience, which matters in welfare and care settings. We size the system to your real consumption profile from your half-hourly data.

Surplus electricity is exported to the grid, and under the Smart Export Guarantee (SEG) your electricity supplier pays you for it, typically 5-15p per kWh. For buildings that sit empty during much of the day, like village halls and scout huts, export income is a meaningful part of the return.

Alternatively, battery storage lets you keep that surplus and use it in the evening when your building is busiest. We model both so you can see which makes more sense for your occupancy pattern and budget.