Commercial vs Residential Solar

Is commercial or residential solar a better investment?

Commercial solar costs 40% less per kWp (£700-£1,200 vs £1,300-£1,800), has faster payback (3-5 years vs 8-12 after tax relief), and qualifies for 100% first-year capital allowances + VAT recovery. Residential solar has 0% VAT (no recovery needed), tax-free savings and SEG income, and simpler planning rules. Both are strong investments — commercial just benefits from economies of scale and tax treatment.