businesssolarfinance

The funding decision

How to fund solar for your business, route by route

Buy it, borrow it, lease it, or let a funder own it. Each route lands differently on your cashflow, your balance sheet, your tax bill and your lifetime return. Read how each one works in plain English, then model it against your own electricity spend before you talk to anyone.

Model your numbers first

Buy Outright (Capital Purchase)

Fund the system from your own reserves and keep every pound of saving, export income and tax relief. It costs the most on day one and returns the most over its life.

Upfront:
Full installed cost
Term:
No finance term
Owns it:
Your business, from commissioning
Understand this route and model it →

Power Purchase Agreement (PPA)

A funder pays for, owns and maintains the system on your roof at no capital cost. You just buy the power it makes at a rate below what the grid charges you.

Upfront:
£0
Term:
Usually 10 to 25 years
Owns it:
The PPA funder, for the life of the contract
Understand this route and model it →

Hire Purchase

Pay a small deposit then fixed monthly instalments, own the system at the end, and still claim the full first-year tax relief now.

Upfront:
Deposit only, often around 10%
Term:
Usually 2 to 7 years
Owns it:
The lender during the term, your business at the end
Understand this route and model it →

Asset Finance

Borrowing secured against the solar equipment itself, arranged as hire purchase or a finance lease, so you keep your other credit lines free.

Upfront:
Low or none, deposit varies
Term:
Usually 3 to 10 years
Owns it:
Depends on the structure: you at the end under HP, the lessor under a lease
Understand this route and model it →

Operating Lease

Rent the system for a fixed monthly cost with the lessor keeping ownership. The rentals are fully expensed through your profit and loss.

Upfront:
£0 to low
Term:
Usually 5 to 15 years
Owns it:
The lessor, throughout the term
Understand this route and model it →

Business or Green Loan

Borrow the cash to buy the system outright and own it from day one, then repay the loan on its own schedule. Some lenders price green projects keener.

Upfront:
£0, the loan funds the purchase
Term:
Usually 3 to 15 years
Owns it:
Your business, from day one
Understand this route and model it →

No Upfront Cost / Fully Funded

The zero-capital options gathered in one place. 'Fully funded' is a promise, not a product: it always turns out to be a PPA or 100% finance underneath.

Upfront:
£0
Term:
Varies by structure
Owns it:
Depends on the structure underneath
Understand this route and model it →

See all seven routes side by side →

Already know you want to borrow? It is worth seeing which lenders fund business solar before you settle on a route. Ready to move straight to figures instead? Our partners will put costed quotes in front of you.

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Commercial Solar Across the UK

Once your direction is clear, you can request costed solar finance quotes.

To weigh up specific lenders and funders, see how to compare solar finance companies.

Model the return in more depth with solar payback and ROI.

Check what the system itself costs at commercial solar system costs.

New to solar for your premises? Start with solar panels for business.

Find vetted installers through the UK hub for commercial solar installation.

Get a free quote
Get a free quote