# Fund your solar & battery, your way 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. ## 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. ## The funding routes compared | 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. ## Frequently asked questions **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. ## Related pages - [Commercial solar funding hub](https://ppafunding.com/commercial-solar-funding) - [Pricing](https://ppafunding.com/pricing) - [What is a PPA?](https://ppafunding.com/a-guide-to-power-purchase-agreements-ppas-for-solar-pv-and-battery-storage) - [Get a free quote](https://ppafunding.com/get-a-quote) --- Source: [Solar Funding Options — PPA, Hire Purchase, Lease & CapEx](https://ppafunding.com/funding-options) · 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.