Buying outright
Buying commercial solar outright
Own the system, keep every unit it generates and claim the tax relief. An independent, introducer-led look at what buying commercial solar actually involves — and how to tell a good quote from a bad one.
Buying commercial solar outright means your business funds the system and owns it from day one, keeping every unit it generates and claiming the available capital allowances. It costs more up front than a Power Purchase Agreement but usually returns more over the system's life. Hire purchase and leasing sit between the two.
The buyer's route
What buying actually involves
Buying is a construction project, not a purchase off a shelf. A feasibility assessment establishes what your roof or land can take and how much of the generation you would use on site. A specification goes to installers, who survey and quote. The chosen installer handles design, DNO approval, installation and commissioning, and hands over a system you own outright.
The decisions that matter most are made before anyone quotes: how big a system your consumption actually justifies, whether the roof needs work first, and whether you want battery storage in the design from the start rather than retrofitted later.
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You own it from day one
The asset sits on your balance sheet and every unit it generates displaces grid electricity you would otherwise buy.
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You keep the full saving
There is no rate to pay and no funder to share the benefit with — the whole of the avoided cost is yours.
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You carry the risks
Performance, maintenance and component replacement are yours to manage, which is why the O&M arrangements matter more than buyers expect.
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The tax relief is yours to claim
Because you own the asset, capital allowances are available to you. Treatment depends on your circumstances — confirm it with your accountant.
Paying for it
Three ways to own the system
Buying outright is one of three routes that end with you owning the asset. All of them let you claim the available allowances; they differ in when you pay and what security is required.
Outright Purchase (CapEx)
Own it from day one and keep 100% of the savings.
- Upfront
- Full system cost
- Ownership
- Yours from day one
- Accounting
- Capital asset
Best for: Businesses with capital available that want the strongest long-term return and full ownership.
- Best long-term return on investment
- Own the asset and keep every kWh of savings
- May qualify for capital allowances / full expensing
Hire Purchase (HP)
Spread the cost, own the system at the end.
- Upfront
- Deposit
- Ownership
- Yours at end of agreement
- Accounting
- Asset on balance sheet
Best for: Businesses that want to own the system but spread the cost and protect their cash flow.
- Preserve working capital — pay over an agreed term
- Own the system outright at the end
- Tax-efficient: claim capital allowances and offset interest
Leasing (Operating / Finance Lease)
Low upfront, predictable rentals as an operating cost.
- Upfront
- Low / none
- Ownership
- Return, extend or buy at end
- Accounting
- Rentals as operating expense
Best for: Businesses that want minimal upfront cost and predictable, tax-efficient operating payments.
- Little or no upfront cost
- Rentals are typically 100% tax-deductible
- Predictable, fixed payments
Not set on owning it? A Power Purchase Agreement removes the capital cost entirely — the funder owns and maintains the system and you buy the power. See PPA vs buying outright for the comparison.
Cost
What drives the price
There is no useful per-kilowatt figure that holds across sites, because the things that move the number are site-specific: roof type and condition, access and scaffolding, how far the cable run is, whether the DNO requires reinforcement or export limitation, and how much remedial roof work is needed before anything is fixed to it.
That is also why quotes for the same building can differ so widely. Two quotes are only comparable once you have normalised them for what each one includes — scaffolding, DNO fees, monitoring, commissioning and certification, and the first year of maintenance are the items most often in one and missing from the other.
Related: what commercial solar costs, payback periods and capital allowances.
How we help
Where PPA Funding fits
We are an independent introducer. We do not install, we do not fund, and we do not charge you for the introduction. Tell us about the site and what stage you are at, and we will introduce you to a suitable partner — for the installation, and for the finance if you would rather spread the cost than pay outright.
We may earn a commission from a partner if a project proceeds. That never changes the price you are offered, and you are under no obligation at any stage.
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Common questions
Buying commercial solar: FAQs
Is it cheaper to buy commercial solar outright or use a PPA?
Over the full life of the system, buying outright usually returns more, because there is no rate to pay and no funder sharing the benefit. A PPA costs nothing up front and carries none of the performance or maintenance risk. Which is cheaper for you depends on the capital you have available and what else that capital could earn.
Can I claim capital allowances if I buy the system?
Generally yes, because you own the asset — but solar is treated as special rate expenditure, which affects which allowances apply. Most commercial projects fall within the Annual Investment Allowance. Confirm the treatment for your business with your accountant before you rely on it.
Do you install the system yourselves?
No. PPA Funding is an independent introducer. We introduce you to a suitable installer and, where you want to spread the cost, to a finance partner. They survey, quote and contract with you directly.
What does commercial solar cost to buy?
It depends on the site rather than the size alone — roof type and condition, access and scaffolding, cable runs, and any DNO reinforcement or export limitation all move the number. The only reliable figure is a quote for your building, which is why comparing several matters more than any published average.
Can I buy the system and still have someone maintain it?
Yes, and you should plan for it from the outset. When you own the system the maintenance is your responsibility. We can introduce you to a maintenance specialist for the site — see our operations and maintenance pages for what that covers.
What if I want to spread the cost rather than pay up front?
Hire purchase and leasing both do that. With hire purchase you own the system at the end of the agreement and can usually claim the allowances; with a lease the position at the end depends on the lease type. A PPA removes the capital cost entirely but you do not own the system during the term.
Thinking about buying?
Tell us about the site and where you are in the process. We are an independent introducer — the introduction is free and there is no obligation.
- £0 upfront cost
- Rates 30%+ below the grid
- Fully funded & maintained
- No obligation