# Commercial solar for Offices & commercial property

Offices and commercial buildings use most of their power in daylight working hours, and solar directly improves a building’s EPC rating. Funded solar PV and battery storage cut running costs and raise asset value — with no upfront cost.

Office demand — lighting, IT, HVAC and small power — is concentrated in working hours, so a good share of solar generation is used on site. For landlords and owner-occupiers alike, that means lower bills and a more marketable, future-proof building.

Solar also lifts EPC ratings, which matters under tightening Minimum Energy Efficiency Standards (MEES). A better EPC helps avoid let-ability restrictions, supports rent and protects asset value.

## Why it fits Offices & commercial property

- **Better EPC, better asset** — On-site generation improves EPC ratings, helping meet MEES and protecting the value and lettability of the building.
- **Daytime demand** — IT, HVAC and lighting create a working-hours load that solar offsets directly, cutting service charges and running costs.
- **Attractive to tenants** — Lower energy costs and green credentials are increasingly what occupiers look for — a genuine leasing advantage.
- **Flexible funding** — A PPA keeps it off the balance sheet; owners wanting the asset can use hire purchase or outright purchase instead.

## Frequently asked questions

**How much can solar improve our EPC rating?**

It varies by building, but reducing grid-drawn electricity through on-site generation is one of the more effective ways to lift a commercial EPC. We can indicate the likely impact as part of your assessment.

**Who benefits when the building is let — landlord or tenant?**

It depends on the lease and who buys the power. We can structure a PPA around a landlord, a tenant, or both, and will advise on the best arrangement for your situation.

## 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 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.

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Source: [Commercial solar for Offices & commercial property](https://ppafunding.com/commercial-solar-for/offices-and-commercial-property) · 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.