Typical hospices & care charities install at a glance
- System size
- 30-100 kW
- Panels
- 72-240 panels
- Roof area
- 270-930 sqm
- Project value
- £35,000-£120,000
- Payback
- 6 years
- Annual generation
- 28,000-95,000 kWh
- Annual CO₂ saved
- 6-20 tonnes
Indicative ranges for UK community buildings. Your figures depend on roof, occupancy and tariff. Not sure which funding applies? Try the funding checker.
Why hospices and care charities see the strongest solar returns of all
A hospice runs around the clock as a clinical building, and that gives it the best self-consumption profile of any charity premises. Heating, lighting, clinical equipment, kitchens and laundry draw a very high and very steady baseload at all hours, and because the building uses so much of what it generates rather than exporting it, the economics are exceptionally strong. Hospices and larger care charities also carry significant bills, often £40,000 to £200,000-plus a year, so even a percentage reduction translates into large absolute savings that can be released straight back into care. Solar turns an unavoidable, uncontrollable cost into two or three decades of predictable, largely free daytime power, and for a charity funded heavily by donations, every pound saved on energy is a pound that does not have to be raised again next year.
There is a resilience dimension too. In a setting where power continuity matters for patient comfort and safety, pairing solar with battery storage adds a useful layer of on-site energy security alongside the savings, which is increasingly valued by trustees and clinical leads alike.
What a typical installation looks like and how it is sized
Hospices typically warrant the largest systems in this sector, generally 30-100 kW, around 72 to 240 panels across roughly 270-930 m² of roof, generating about 28,000 to 95,000 kWh a year and saving in the order of 6 to 20 tonnes of CO2 annually. The 24/7 clinical load means an unusually high share of generation is consumed on site, which is what produces the strong payback. The installer sizes precisely from your half-hourly data, and the installer models battery storage both for the overnight load and for the resilience benefit, so the proposal reflects how the building genuinely uses power rather than a generic estimate.
Costs, payback and income
A hospice or care-charity project typically costs from £35,000 up to around £120,000 at the charity rate. Hospices are charities and qualify for 0% VAT on installation at buildings used for a relevant charitable (non-business) purpose, removing the 20% VAT charge before any grant or finance. Simple payback is around 6 years thanks to the continuous load, after which generation is effectively free for the remaining 15-20+ years. That is a saving that compounds into a very large sum over the system's life. Any surplus exported earns 5-15p per kWh under the Smart Export Guarantee, though a 24/7 site exports comparatively little because it consumes most of what it makes. Our cost guide sets out the ranges.
For a hospice trustee, the scale of those absolute numbers is the point worth dwelling on. A charity spending well over £100,000 a year on energy that can cut a meaningful share of that bill is, in effect, recovering the cost of one or more frontline posts every single year: nurses, care assistants or family-support workers funded not by a fresh appeal but by electricity the building would have generated anyway. Because the saving is largely fixed and predictable for two decades, it also strengthens the long-term financial planning that funders and the Charity Commission increasingly expect from a well-governed care charity. Solar is rarely the most emotive item on a hospice's capital list, but it is one of the few that quietly pays for care year after year once it is in place.
Funding routes that fit hospices and care charities
Larger schemes open finance routes that smaller charities cannot use:
- Sector funders and major donors increasingly back energy-saving capital projects, and the clear payback case, where every pound saved on energy is a pound returned to care, makes a strong proposition for a transformational gift.
- Charitable trusts and foundations provide capital grants toward the building.
- Power Purchase Agreements are well suited to large hospice roofs where the charity prefers no upfront cost, with a funder owning and maintaining the system while the hospice buys cheaper electricity from day one.
- Charitable-bond and asset finance suit larger schemes where the charity wants to own the system outright but spread the cost over time.
Our grants and funding guide models these side by side so trustees can compare them on a like-for-like basis.
Practical considerations and links
The defining practical challenge is the clinical setting itself. Roof access and electrical isolation during installation must be planned carefully to avoid disrupting care, so the installer should phase the work, coordinate closely with your facilities and clinical teams, and schedule around the needs of patients and families at every stage. Roof structure and asbestos are confirmed before design as standard, and any works near clinical areas are sequenced to keep the setting safe and calm.
For animal-welfare settings with a similar 24/7 profile, compare our animal rescue centre guidance. To plan a scheme around your clinical operation, send an enquiry (an installer can work around your care routine) or read the charity solar FAQs first.
Free enquiry for your hospice or care charity
Tell us about your building and we reply by email with the funding routes that fit, including your 0% VAT position. Free, no obligation.
- 0% VAT for qualifying charities until 31 March 2027
- Grant routes explained on our funding page
- Typical costs on our cost page, answers on the FAQs
- No-upfront PPA where reserves are tight
Common questions
Can charities get solar panels for free?
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 Great British Energy Community Fund (aimed at community-owned energy projects) 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 the 20% VAT charge, and grants or a PPA can cover much or all of the rest.
Do charities pay VAT on solar panels?
In most cases, no. Since 1 February 2024 (until 31 March 2027, after which the reduced 5% rate is due to apply) 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, so the 20% VAT charge is not added to 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. An installer should help you confirm eligibility and complete the paperwork correctly.
What grants are available for solar panels for charities?
The main routes are: the National Lottery Community Fund (community and voluntary organisations); the Great British Energy Community Fund (which builds on the former Community Energy Fund) for community-owned energy projects; 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.
How much do solar panels cost for a charity or community building?
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. Send your details and we reply by email; any fixed-price quote comes from whichever installer you choose.
What is the payback period on charity solar panels?
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.