Solar finance options
Outright purchase, operating lease, or PPA. The right structure depends on your balance sheet, tax position, and how much risk you want to own.
The cost of a commercial solar PV and battery storage system is only half the story. The way you fund it decides your real return: whether you keep 100% of the generation, claim the tax relief, and how quickly the system pays for itself. Most UK businesses choose between three routes.
Capital purchase is still the highest-return option for profitable companies. You own the asset, keep every kWh of free generation, monetise the SEG export tariff, and can typically claim 100% full-expensing on the kit in year one, alongside the usual capital allowances. Payback periods of 4-8 years are common, with a 25-year warranty on Tier 1 panels paying out long after.
Operating leases and Power Purchase Agreements (PPAs) suit businesses that want zero-CapEx, off-balance-sheet treatment, or simply prefer not to be in the asset-management business. Under a PPA, a third party funds, owns, and maintains the system on your roof and you only pay for the kWh generated, usually at a 30-50% discount to grid prices, with annual indexation fixed for 15-25 years.
We model all three structures side by side against your half-hourly load, kWp roof potential, and tax position so the board paper compares like with like, before you sign anything.