By the PPA Funding team Last updated
Most UK businesses fund commercial solar through a Power Purchase Agreement (no upfront cost), hire purchase, leasing or outright purchase — often supported by capital allowances when you own the system. Dedicated grants are limited and change over time, so funding is usually the main route.
Funding beats waiting for grants
Broad grants for commercial solar are limited and come and go, so relying on one can mean missing out on savings now. The established routes — PPA, hire purchase, leasing and outright purchase — let you proceed today. Our funding options page compares them.
The role of capital allowances
If you own the system (outright or via hire purchase), you may claim capital allowances such as the Annual Investment Allowance or full expensing, effectively reducing the net cost. Your accountant can confirm what applies.
Where grants might fit
Occasional local or sector-specific schemes appear, sometimes tied to net-zero or regeneration funding. If one is available and relevant, it can complement your chosen funding route rather than replace it.
This guide is general information, not financial or tax advice. Your circumstances determine what applies — please confirm with your accountant or advisor. Get a tailored proposal →
Frequently asked questions
Is there a government grant for commercial solar?
Broad, ongoing grants are limited and change over time. Most businesses fund solar through a PPA, hire purchase, lease or purchase, with capital allowances often available when you own the system.
What’s the cheapest way to get solar with no capital?
A PPA requires no upfront cost at all — the provider funds everything and you pay for the power at a rate below the grid. If you prefer to own the asset, hire purchase spreads the cost while keeping allowances in play.
Sources & further reading
Related guides
- Capital allowances on commercial solar: full expensing & AIA explained
- How solar improves your commercial EPC (and helps with MEES)
- How much can your business save with commercial solar?
See our funding options, commercial solar and solar by industry pages.