# Can my business get free solar panels? What “free solar” really means

A UK business can get commercial solar installed with no upfront cost, but “free solar” is not literally free. Under a Power Purchase Agreement (PPA) a funder pays for, owns and maintains the system, and you buy the electricity it generates at a fixed rate at least 30% below the grid.

## Can a business really get solar for free?

You can get commercial solar with nothing to pay upfront, which is what most people mean by “free solar”. What you cannot get is electricity that costs nothing — the panels still have to be paid for, so someone funds them and recovers that cost over time. Being clear about this is the honest starting point.

The most common route is a Power Purchase Agreement (PPA). A funder pays for the design, equipment, installation and maintenance, and in return you agree to buy the electricity the system generates at a fixed rate, guaranteed at least 30% below your grid price. There is no capital cost to your business, but you do pay for the clean power you use.

## How fully funded (“free”) solar works

Under a PPA the funder owns and looks after the system for the term, typically around 20 years, then it transfers to your business for a nominal £1. From that point the electricity it produces is effectively free, aside from upkeep. So “free” is more accurate at the end of the term than at the start.

Other routes exist too. A lease or hire purchase spreads the cost while moving toward ownership; grants occasionally part-fund a purchase but rarely cover the whole cost; and buying outright means you pay for everything but keep all the savings. PPA Funding is an independent introducer — we set out each option and connect you with funders, at no cost to you.

## What to watch with “free solar” offers

Because “free solar” is an attractive phrase, it pays to read past the headline. Check the price per kWh and how far it really sits below your grid rate, the length of the agreement, any annual price escalation, what maintenance is included, and what happens if you sell or vacate the building.

Treat any claim of genuinely free electricity with caution. A fair funded deal is transparent: no upfront capital, a clear rate below the grid, and the system yours for £1 at the end. If a business has strong capital and very high self-consumption, buying outright can still work out better over the system’s life, so it is worth comparing.

## Frequently asked questions

**Are there truly free solar panels for a business?**

Not literally. With a PPA there is no upfront cost, but you buy the electricity the panels generate at a fixed rate below the grid. The honest description is “fully funded” or “zero upfront”, not free power. The system does become yours for £1 at the end of the term.

**What is the catch with fully funded solar?**

It is a long-term agreement — usually around 20 years — during which the funder owns the system and you buy its output. There is no hidden catch, but you should read the rate, term, escalation and exit terms before signing. We can introduce you to funders and explain each option.

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Source: [Can my business get free solar panels? What “free solar” really means](https://ppafunding.com/guides/can-my-business-get-free-solar-panels) · Author: PPA Funding team · Updated: 2026-08-03

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.