By the PPA Funding team Last updated
On a multi-let building, solar output is measured and shared using sub-metering. The landlord can supply generation to occupiers through a private wire arrangement, sell it at an agreed rate below the grid, or offset shared landlord-supply areas. How it is split depends on metering, leases and who funds the system.
How is solar generation shared between tenants?
On a building with several tenanted units, a single rooftop array usually connects at one point, then sub-meters record how much generated electricity each unit and the shared landlord-supply areas actually use. That data drives how the solar is allocated and billed, rather than every tenant having their own separate panels.
A common route is a private wire supply, where the landlord or a funder sells the on-site generation to occupiers at a fixed rate guaranteed at least 30% below the grid. Any surplus the building does not use can be exported. The metering has to be accurate and transparent so each tenant can see what they are paying for.
Who pays for the system and who benefits?
The split of cost and benefit follows who funds the system. Under a funded power purchase agreement there is no upfront cost to the landlord, and occupiers buy the cheaper on-site power while the funder recovers its investment through the per-kWh rate over the term. At the end of a typical 20-year term the system becomes the owner's for £1.
If the landlord buys the system outright instead, they carry the capital cost but keep the full margin between generation cost and what tenants pay. Whichever route, the party paying the energy bills is usually the one that gains, so aligning that with who funds the array is the key commercial question.
What needs checking in the leases?
Leases decide whether this works cleanly. Points to check with a solicitor include who has rights to the roof, how service charges treat the equipment, whether tenants can be offered on-site power without breaching existing supply clauses, and what happens to the arrangement when a tenant leaves or the building is sold.
Recovery of any cost through the service charge, VAT treatment of on-sold electricity, and metering responsibilities also need confirming. Because these turn on the specific leases and tax position, treat them as questions for your solicitor and accountant rather than assumptions.
This guide is general information, not financial or tax advice. Your circumstances determine what applies — please confirm with your accountant or advisor. Get a tailored proposal →
Frequently asked questions
Can I put one solar system on a building with several tenants?
Yes. A single array is metered so each unit's share of the generation is recorded, then billed through a private wire supply or allocated across landlord-supply areas. The practical limit is usually the leases and metering, not the technology.
Do tenants have to buy the solar electricity?
That depends on their leases and any existing supply contracts. Some arrangements offer on-site power at a rate below the grid as an option; others cover only shared landlord areas. Check the specific lease terms with a solicitor before committing.
Related guides
- How to choose a commercial solar provider: accreditations, questions and red flags
- Building-Integrated Solar (BIPV) for Business: Solar Built Into the Building Fabric
- Battery Storage and Grid Services: How a Commercial Battery Can Earn Income
See our funding options, commercial solar and solar by industry pages.