Common Pitfalls & How to Avoid Them

While the financial case for solar and batteries is strong, businesses should be aware of some common pitfalls. First, don’t assume solar qualifies for full expensing—it doesn’t. Solar panels are “special-rate assets,” so you’ll need to use AIA or other allowances. Second, if you dispose of the system after claiming first-year allowances, you may trigger a balancing charge, reducing your tax savings—factor this into your financial models. Third, business rates exemptions aren’t always automatic. Make sure you file the right paperwork with your council or VOA. Fourth, export payments vary widely, so review SEG tariffs regularly and renegotiate when you can. Finally, many businesses underestimate the benefit of pairing solar with battery storage—not just for self-consumption but also for time-shifting energy use and increasing export value. With careful planning, these pitfalls are easily avoided, and your system will deliver maximum returns.