By the PPA Funding team Last updated
“£0 upfront” means your business pays no capital cost to install commercial solar. Under a PPA the funder pays for the design, DNO approval, equipment, installation, monitoring and maintenance. You pay only for the electricity generated, at a fixed rate below the grid — though some costs on your side, such as legal advice, can sit outside.
What “£0 upfront” covers
When a commercial solar system is funded through a Power Purchase Agreement, the funder meets the whole cost of getting it built and running. That normally includes the site assessment and system design, the Distribution Network Operator (DNO) connection approval, the panels, inverters and mounting, the installation itself, and ongoing monitoring, maintenance and insurance of the equipment for the term.
Because the funder owns the system during the agreement, that delivery risk sits with them, not you. Your business puts in no capital and simply buys the electricity the system generates at a fixed rate guaranteed at least 30% below the grid. At the end of the term the system transfers to you for a nominal £1.
What might sit outside the £0
An honest “£0 upfront” still repays a few questions. Costs that can fall to your business rather than the funder include your own legal or property advice on the agreement, any repairs a tired roof needs before panels can go on, changes you request to your electrical supply, and anything tied to early termination if you exit the agreement before the end.
None of these are hidden charges in a fair deal, but they are worth confirming up front so you compare like with like. Ask the funder to spell out exactly what the £0 covers, and to put the per-kWh rate, term and end-of-term position in writing.
How £0 upfront compares with buying or financing
The trade-off with £0 upfront is straightforward: you keep your capital and hand the delivery and maintenance risk to the funder, in exchange for buying the power rather than owning the asset from day one. Buying outright reverses that — full capital cost, but you keep every unit of saving and the asset sits on your balance sheet.
Leasing and hire purchase sit in between. The right route depends on your access to capital, your tax position and how much electricity you use in daylight. As an independent introducer, PPA Funding sets out each option against your own numbers and connects you with funders, at no cost to your business.
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 £0 upfront solar too good to be true?
No — it is a genuine funding model. Under a PPA the funder covers the capital cost and recovers it through the fixed rate you pay per kWh over the term, usually around 20 years. There is no upfront charge for the system; just confirm what is and is not included before signing.
Do I pay anything at all upfront?
For the system itself, no — a PPA carries no capital cost. You may still have your own costs, such as legal advice on the agreement or repairs to an ageing roof before installation. Ask the funder to confirm exactly what the £0 upfront covers for your site.
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.