A PPA means zero upfront cost, no maintenance and a fixed rate below the grid, with the provider owning the system. Buying outright (CapEx) costs more upfront but gives you full ownership, all the savings and potential capital allowances. The best choice depends on your capital, appetite for maintenance, and long-term plans.
Choose a PPA if…
You want no capital outlay, no responsibility for the system, and immediate savings. A PPA is fully funded and maintained, and the system becomes yours for a nominal £1 at the end of the term. It suits businesses that would rather protect cash and avoid asset risk.
Buy outright if…
You have capital available and want the strongest long-term return. Owning the system means you keep 100% of the savings and may claim capital allowances. Hire purchase sits in between — you spread the cost, own it at the end, and can still claim allowances.
There is no single right answer
Each route wins on different measures. The best way to decide is to compare them side by side against your own numbers, which is exactly what a free proposal lets you do.
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 a PPA more expensive over the full term?
Total lifetime cost can be higher than buying outright, because the provider funds and maintains everything and takes the asset risk. In exchange you pay nothing upfront and carry no maintenance burden. It is a trade-off between cash flow and long-term cost.
Which is more tax-efficient?
Owning the system (outright or via hire purchase) can qualify for capital allowances, which a PPA does not. Your accountant can quantify this for your business.
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.