# Commercial solar for Commercial property landlords

For commercial property landlords, on-site solar improves a building’s EPC rating, supporting compliance with Minimum Energy Efficiency Standards (MEES) and protecting lettability and value. Funded through a PPA, it needs no capital outlay and can be rolled out across a portfolio.

Under tightening MEES rules, a poor EPC can restrict letting a commercial property. Solar is one of the more effective ways to lift a building’s rating, while also giving tenants lower running costs and stronger green credentials — a genuine letting advantage.

A PPA lets landlords add solar with no capital outlay, structured around the landlord, the tenant, or both. It can be phased across a portfolio, turning energy performance from a liability into an asset.

## Why it fits Commercial property landlords

- **Improve EPC, meet MEES** — On-site solar lifts EPC ratings, supporting compliance and protecting lettability under MEES.
- **Protect and add value** — A better-performing, greener building is more lettable and more valuable to buyers and investors.
- **Attract and keep tenants** — Lower energy costs and sustainability credentials are increasingly what occupiers want.
- **Portfolio rollout, zero capital** — A PPA needs no capital and can be phased across multiple buildings under one programme.

## Frequently asked questions

**How does solar help me meet MEES?**

On-site solar reduces the grid electricity a building draws, which improves its EPC rating — one of the more effective levers for meeting the minimum standards that govern lettable commercial property.

**Can a PPA work when the building is tenanted?**

Yes. A PPA can be structured around the landlord, the tenant, or both, provided the power has a user on site and the arrangement lasts long enough. We help structure it around your leases.

## Funding routes

| 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 provide 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.

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Source: [Commercial solar for Commercial property landlords](https://ppafunding.com/commercial-solar-for/commercial-property-landlords) · 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 installer or the funder. The service is free to use; a commission may be earned from partner funders at no extra cost. Content is educational and is not financial or tax advice.