Solar panels for charities, churches and community buildings

Does solar suit your building's pattern of use?

The honest answer depends on how often the building is used in daylight. Solar saves the most when generation is consumed on site, and charity and community buildings vary more than almost any other group.

A hall used mainly for evening classes will export much of its generation. That does not always rule solar out: export can earn income through the Smart Export Guarantee where the system is eligible, and some buildings increase daytime use after installation, for example by moving to electric heating or hosting more daytime groups. But trustees should see a realistic model before committing funds. Battery storage can move some generation into the evening, though for small, lightly used buildings it can lengthen rather than shorten payback.

Electric heating changes the picture. Many churches and halls are heated for short periods, and if a heat pump or electric heaters replace an oil or gas boiler, winter demand will rise. Winter is when solar produces least, so the survey looks at the month by month balance rather than the annual total.

Building and heritage issues the survey checks

Older buildings and roofs

Churches, chapels and halls are often built with slate, clay tile, lead or stone roofs, or with lightweight timber structures. The surveyor checks roof condition, the fixing method suitable for the covering, and whether the structure can take the extra load; a structural survey may be needed. Some roofs are better left alone, and a nearby hall, vestry, outbuilding or ground-mounted array may be a better location.

Faith buildings and heritage consents

Places of worship are often listed, in conservation areas, or both. Several denominations operate their own approval systems for works to their listed buildings under the ecclesiastical exemption. In the Church of England, works to a church building generally need a faculty from the diocese, and parishes are encouraged to take early advice from the diocesan advisory committee. Planning permission may still be needed separately. Our planning permission guide explains the general rules.

Old roof spaces are also common roosts for bats, which are protected. If bats may be present, an ecological survey may be required before work, and timing restrictions can apply.

Electrical supply

Smaller community buildings often have a single-phase supply with limited capacity. Small systems may connect under G98, while larger ones need G99 approval from the DNO.

Finance, VAT and governance for charities

VAT

From 1 February 2024, the zero rate of VAT for installing energy-saving materials, including solar panels, was extended to buildings used solely for a relevant charitable purpose. In broad terms, that covers buildings used by a charity other than in the course of business, or used as a village hall or similarly to provide social or recreational facilities for a local community. The charity usually needs to give the installer an eligibility declaration. Mixed use, such as part of a building let commercially, can affect eligibility, so confirm the position with your accountant or HMRC's guidance on energy-saving materials before relying on it.

Capital allowances and tax

Charities are generally exempt from tax on income used for charitable purposes, so capital allowances usually bring little benefit. A trading subsidiary that pays corporation tax may be in a different position. Check with your accountant.

Funding and community energy

Charities often combine reserves with grants or community fundraising. Some community buildings host solar owned by a local community energy group, which raises money from members, owns the panels and sells the electricity to the building at an agreed price. That can work well where the charity lacks capital, though the agreement needs care over its length, pricing and roof access. Our grants page covers the main public sources of support.

TODO for the site owner: Verify current public funding for community energy and for solar on charity or community buildings (including any Great British Energy community energy funding and devolved schemes) before naming specific schemes.

Trustee decisions

Trustees must act in the charity's best interests and should take appropriate advice on significant spending, long contracts and leases of the roof. A clear survey report with assumptions stated gives the board something concrete to discuss. A power purchase agreement avoids capital outlay but commits the charity for many years, which trustees should weigh carefully.

What to have ready for a charity or community building survey

• Electricity bills for the last 12 months, and half-hourly data if the building has a smart or half-hourly meter
• A typical weekly timetable of bookings, services or activities
• Heating system details and any plans to change it
• Who owns the building, and any trust deed or lease
• Listing status, and for churches the most recent quinquennial inspection report
• Any known bat roosts or ecological surveys
• Your trustees' decision timetable and how the project might be funded

Request a free survey and the report can be shared directly with your trustees.