Solar for anchor tenants in shopping centres

Why an anchor tenant matters to a shopping centre owner's solar plans

Of all the occupiers in a shopping centre, the anchor tenant does most to shape a solar plan. A food store, department store or big-box unit often holds one of the larger roofs and a large share of the centre's electrical load, so the owner has to decide early whether an array serves the common parts, the anchor unit or both. That choice rests on the lease: who controls the roof, who owns and maintains the plant, and whether the occupier buys the power, funds its own array on a demised roof, or leaves it to the owner. Supermarkets in shopping centres are one kind of anchor; department stores and big-box units raise the same lease questions.

Anchor units often sit under large single-storey roofs that are simple to engineer, but the roof may be let to the tenant, shared with plant or held under a separate title, so the owner needs the lease and the title before any design work. Car parks are a separate topic. Tenant demand matters as well: an occupier with its own carbon targets is more likely to engage with an owner-led proposal. The owner also has a letting interest in the unit's EPC, which solar can improve; MEES currently requires EPC E, and the government has proposed EPC B from 2031 for let buildings over 1,000 m2 where cost effective.

How an anchor-tenant scheme is scoped and sized

A system for an anchor unit in a shopping centre is sized by the unit's metered load and the usable roof area and structure, and the first question for the owner is who controls that roof. The number of panels, the yearly generation and the carbon saving follow from the array size and the load it serves, so they are worked out per scheme.

Sizing starts from at least twelve months of half-hourly meter data for the anchor unit, so the owner needs the tenant's consent to share it or a sub-meter that records it. With that data the array is matched to the load it will serve, and tenant EV-charging demand can be added. Where the anchor is supplied through the landlord's network, sub-metering settles who is billed for what the array produces, and the service charge or a metered recharge can recover the cost, depending on the lease. Where a centre has several anchors, the same sizing logic can be settled once and reused.

Costs, payback and tax relief

An anchor-tenant scheme is priced per quote and the price depends on the roof structure, the size of the unit's load and whether the owner or the tenant pays. Payback depends on who uses the power, import tariffs and the installed price; ask the installer for an itemised price per kWp.

Solar PV is a special-rate plant-and-machinery asset. Where the plant is bought, the 100% Annual Investment Allowance usually gives relief on the first £1m of qualifying spend in year one for a business under the limit, at the company's own corporation tax rate, and the 50% First-Year Allowance can apply above the cap. Solar does not qualify for full expensing. Who claims the allowance depends on who buys the plant, so settle ownership in the lease and take tax advice. The Smart Export Guarantee covers any surplus exported; suppliers set the rates and terms, so compare tariffs. The cost guide explains how the economics are modelled.

Funding routes in detail

Plant and Machinery Capital Allowances are the backbone of the case: 100% AIA up to £1m and the 50% First-Year Allowance above it. Where the scheme adds EV charging, the Workplace Charging Scheme gives up to £500 per socket (£350 before 1 April 2026) and up to 75% of purchase and installation cost, for up to 40 sockets per applicant, but it closes on 31 March 2027. The applicant must own the site or have landlord consent. Check the parking eligibility rules: parking must be designated to the applicant and not solely for customers.

The Smart Export Guarantee pays for exported power, where suppliers set the rates and terms. Where the owner prefers not to use capital, a power purchase agreement lets a third party fund the array, with the anchor or the centre paying per kWh consumed, and asset finance is another route; terms vary by provider, so compare them. Whichever route is used, the lease or a separate power agreement should set out who pays, who benefits and what happens to the plant when the lease ends.

Compliance and sector considerations

A roof structural survey is needed before loading PV onto an anchor unit's roof, and any roof penetration should be cleared with whoever controls the roof and holds its warranty. A G99 application and DNO approval are needed for connections above 16 A per phase (3.68 kW single-phase, about 11 kW three-phase), which an array on an anchor unit will usually exceed. The DNO sets the programme, so the application should be submitted early.

Rooftop PV is generally permitted development under Class J of Part 14 of the GPDO 2015 within size limits. Where the unit is let rather than operator-owned, landlord consent, metering and service-charge structuring need to be settled before install, and MEES (currently EPC E, with EPC B from 2031 proposed for let buildings over 1,000 m2 where cost effective) is the direct driver for the unit's EPC. The lease should also say who may enter the roof and plant areas, and when.

How to approach this kind of project

Start with the lease and the title for the anchor unit, then half-hourly meter data rather than the roof plan, because the unit's real load shows how large an array it can use. Settle who controls the roof and the plant, and who may enter them. A structural survey and a roof build-up and asbestos check should come before anything is priced. Car parks are a separate topic.

The G99 application is best submitted early because the DNO sets the programme and it is often the longest item. Install access needs agreeing with the anchor tenant: works should be planned around trading hours, with the only outage needed for the final grid connection booked for a quiet period or planned shutdown agreed with the tenant. Ask for a fixed-price proposal covering the capital, PPA and finance routes, and ask what warranty and insurance cover applies and whether annual operation and maintenance and 24/7 remote monitoring are included. Where the owner has several centres, one repeatable design with a single monitoring dashboard can give live generation for facilities and ESG reporting.

For the retail owner's view of the whole scheme, see the page on retail solar for shopping centres and retail parks, and for forecourt-style retail with showroom load see car dealership solar. When you are ready, read the cost guide and funding routes, send an enquiry, or start with the solar FAQs. We reply by email.