Funding options
Fund your solar & battery, your way
A PPA is just one route. Whether you want zero upfront cost, to spread the payments, or to own the system outright — we help you compare and access the funding that fits your business.
UK businesses can fund commercial solar and battery storage in four main ways: a Power Purchase Agreement (PPA) with zero upfront cost, hire purchase to spread the cost and own the system, leasing for low-cost operating payments, or outright purchase (CapEx) to own it from day one. PPA Funding helps you compare and access the right route.
One system, four ways to pay
Choose the funding route that suits you
Every business is different. Some want no capital outlay and a fully managed PPA; others prefer to own the system through hire purchase or outright purchase and claim the tax benefits. We'll walk you through each option and introduce you to the right funding partner.
| PPA Power Purchase Agreement | CapEx Outright Purchase | HP Hire Purchase | Lease Leasing | |
|---|---|---|---|---|
| Upfront cost | £0 | Full system cost | Deposit | Low / none |
| Payment | Fixed rate per kWh | One-off capital cost | Fixed monthly instalments | Fixed rentals (opex) |
| Ownership | Yours for £1 at end of term | Yours from day one | Yours at end of agreement | Return, extend or buy at end |
| Maintenance | Fully included | Optional O&M package | Optional O&M package | Optional O&M package |
| Accounting | Off-balance-sheet (operating cost) | Capital asset | Asset on balance sheet | Rentals as operating expense |
Power Purchase Agreement (PPA)
Our flagshipZero upfront. Pay only for the clean power you use.
Best for: Businesses that want no capital outlay, no risk and no maintenance — just lower bills from day one.
Benefits
- 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.
Best for: Businesses with capital available that want the strongest long-term return and full ownership.
Benefits
- 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.
Best for: Businesses that want to own the system but spread the cost and protect their cash flow.
Benefits
- 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.
Best for: Businesses that want minimal upfront cost and predictable, tax-efficient operating payments.
Benefits
- 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
PPA Funding introduces businesses to funding partners across these routes and may earn a commission at no extra cost to you. This information is educational, not financial or tax advice — the right option and its tax treatment depend on your circumstances. Please confirm with your accountant or advisor.
Common questions
Solar funding FAQs
Which solar funding option is cheapest?
It depends on your priorities. A PPA has no upfront cost and the provider carries all risk and maintenance, protecting cash flow. Buying outright usually gives the best long-term value if you have the capital; hire purchase sits in between. We compare them against your own numbers.
Can I claim capital allowances on commercial solar?
Generally yes if you own the system — through outright purchase or hire purchase — you may claim capital allowances such as the Annual Investment Allowance or full expensing. Under a PPA the provider owns the system, so you benefit through a lower rate instead. Confirm the treatment with your accountant.
What is the difference between a PPA and leasing?
With a PPA you pay for the energy the system produces; with a lease you pay a fixed rental for the equipment regardless of output. A PPA ties cost to generation and includes maintenance; a lease is a fixed operating cost. See our guide on PPA vs leasing for detail.
Do I own the solar system?
Under a PPA the provider owns it during the term, then it usually transfers to you for a nominal £1. With hire purchase you own it at the end; with outright purchase you own it from day one; with a lease it depends on the lease type.
Is there really no upfront cost with a PPA?
Yes. Under a PPA the provider funds, installs and maintains everything, so you pay nothing upfront — only for the clean power you use, at a fixed rate below the grid.
Not sure which funding route is right?
Tell us about your site and we'll recommend the best-value option — PPA, hire purchase, lease or outright purchase — with a free, no-obligation proposal.
- £0 upfront cost
- Rates 30%+ below the grid
- Fully funded & maintained
- No obligation