# Buying commercial solar outright 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. ## 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. - **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. - **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. - **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. - **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. ## How buyers pay for it | Route | Upfront | Payment | Ownership | Maintenance | Accounting | Best for | | --- | --- | --- | --- | --- | --- | --- | | Power Purchase Agreement (PPA) | £0 | Fixed rate per kWh | Yours for £1 at end of term | Fully included | Off-balance-sheet (operating cost) | Businesses that want no capital outlay, no risk and no maintenance — just lower bills from day one. | | Outright Purchase (CapEx) | Full system cost | One-off capital cost | Yours from day one | Optional O&M package | Capital asset | Businesses with capital available that want the strongest long-term return and full ownership. | | Hire Purchase (HP) | Deposit | Fixed monthly instalments | Yours at end of agreement | Optional O&M package | Asset on balance sheet | Businesses that want to own the system but spread the cost and protect their cash flow. | | Leasing (Operating / Finance Lease) | Low / none | Fixed rentals (opex) | Return, extend or buy at end | Optional O&M package | Rentals as operating expense | Businesses that want minimal upfront cost and predictable, tax-efficient operating payments. | **Power Purchase Agreement (PPA)** — Zero upfront. Pay only for the clean power you use. Pros: No upfront cost or capital outlay; Rate guaranteed at least 30% below the grid; Fully funded, installed and maintained for you; System becomes yours for a nominal £1 at the end. Consider: A long-term agreement (typically 15–25 years); You don't own the system during the term. **Outright Purchase (CapEx)** — Own it from day one and keep 100% of the savings. Pros: Best long-term return on investment; Own the asset and keep every kWh of savings; May qualify for capital allowances / full expensing; No financing or interest cost. Consider: Ties up capital that could be used elsewhere; You're responsible for maintenance (we can arrange it). **Hire Purchase (HP)** — Spread the cost, own the system at the end. Pros: Preserve working capital — pay over an agreed term; Own the system outright at the end; Tax-efficient: claim capital allowances and offset interest; Fixed, predictable monthly payments. Consider: Interest applies over the term; Subject to finance approval. **Leasing (Operating / Finance Lease)** — Low upfront, predictable rentals as an operating cost. Pros: Little or no upfront cost; Rentals are typically 100% tax-deductible; Predictable, fixed payments; Flexible end-of-term options. Consider: You may not own the system at the end (depends on lease type); Subject to finance approval. ## 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. ## 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. ## Frequently asked questions **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. ## Related pages - [Compare all funding routes](https://ppafunding.com/funding-options) - [Capital allowances on commercial solar](https://ppafunding.com/guides/capital-allowances-on-commercial-solar) - [How much do commercial solar panels cost?](https://ppafunding.com/guides/how-much-do-commercial-solar-panels-cost) - [Solar PPA vs buying outright](https://ppafunding.com/guides/solar-ppa-vs-buying-outright) - [Operations & maintenance](https://ppafunding.com/operations-and-maintenance) --- Source: [Buying Commercial Solar Outright](https://ppafunding.com/buying-commercial-solar) · Contact: 01743 649 888 · info@ppafunding.com · https://ppafunding.com PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the funder, the installer or the maintenance provider. The service is free to use; a commission may be earned from a partner at no extra cost. Content is educational and is not financial or tax advice.