Commercial solar finance
How a system is funded changes who owns it, who carries the risk, and how the numbers should be read — worth understanding before comparing proposals on price alone.
Common ways commercial solar is funded
- Outright purchase (cash or loan). You own the system from day one and capture the full savings. Capital allowances and other tax treatment may apply depending on your business and how the purchase is structured — this depends on your specific circumstances and isn't something we can generalise; confirm current rules on GOV.UK or with your accountant.
- Asset finance / leasing. A finance provider owns the asset (or you own it subject to a loan secured against it) while you make regular payments. This spreads the cost but adds a finance charge to account for in the savings calculation — check what rate is assumed and whether it's included in any payback or ROI figure you've been given.
- Power Purchase Agreement (PPA). A third party owns, installs and maintains the system on your roof, and you buy the electricity it generates at an agreed rate — usually lower than your grid import rate, with little or no upfront capital cost to you. In return, you don't own the asset, and the agreement usually runs for a fixed term (commonly a decade or more). Read the contract length, the agreed rate and how it escalates, and what happens at the end of the term, carefully.
What to check regardless of finance route
- Who is responsible for maintenance, monitoring and inverter replacement over the system's life?
- What happens if you move premises or sell the building during the finance/PPA term?
- Is the quoted saving or payback figure calculated before or after the finance cost?
We don't provide financial advice — this page is a starting point for questions to ask, not a recommendation of one route over another. If you have proposals that include finance or PPA terms, we can review the assumptions as part of an independent proposal review.