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An operating lease or an on-site power purchase agreement means a funder owns the plant and you pay to use it, as rent or as a price per kilowatt-hour. Hire purchase sits nearer to buying, because title may pass at the end or on a final payment, but the documents vary. An off-site corporate PPA is a different product and does not put panels on your building." } }, { "@type": "Question", "name": "Who owns the solar plant under each contract, and why does that matter?", "acceptedAnswer": { "@type": "Answer", "text": "Under outright purchase the occupier owns the panels, inverters and mounting from commissioning. Under an operating lease or an on-site PPA the funder owns the plant. Read the title clause rather than relying on the marketing name, especially for hire purchase or a finance lease. Ownership decides who needs structural sign-off, insurance and a right to leave the plant in place, and it matters if you sell the building. A tenant may use the energy without being the person who can grant those rights." } }, { "@type": "Question", "name": "How should a lease or on-site PPA be compared with buying solar or staying on the grid?", "acceptedAnswer": { "@type": "Answer", "text": "A lease or an on-site PPA is not free solar. The fair test is whether the rent or unit rate, on the same generation assumption and the same term, beats owning the system and also beats carrying on importing from the grid. A kilowatt-hour used on site displaces an imported kilowatt-hour, while export is a separate benefit and only if you are allowed to export and a supplier pays for it. Check whether the PPA bills for generation or for energy delivered to the building, and compare indexation and any minimum payment over the full term rather than annualising year one." } }, { "@type": "Question", "name": "When is outright purchase usually the stronger fit?", "acceptedAnswer": { "@type": "Answer", "text": "Outright purchase tends to fit an owner-occupier that expects to stay, can fund the system, and uses a large share of generation during operating hours. That business keeps the energy benefit and holds maintenance, performance and replacement risk itself. It is a weaker fit if cash is needed in the core business, the site may be vacated soon, or the roof cannot carry a long installation without major works. A bank loan arranged by the business is still a purchase for this comparison: you own the plant and still need a maintenance plan." } }, { "@type": "Question", "name": "When might an operating lease or an on-site PPA fit better?", "acceptedAnswer": { "@type": "Answer", "text": "These routes tend to fit a business that will not deploy capital and wants operations and performance remedies written into the contract. You still have to satisfy a funder's checks on roof, credit and tenure, and credit can change whether an offer is made and on what terms. It works more cleanly when the party that uses the power is the party that pays, or when landlord and tenant already have a clear recharge. A low unit rate on a roof nobody has surveyed is not an offer, and a funder's refusal is information about the site rather than a reason to force a purchase." } }, { "@type": "Question", "name": "Can roof condition, tenure or planning rule out both routes?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. A short occupational lease, a covering that needs replacement, very low use during generating hours, or a connection the network operator will not offer on acceptable terms can rule out both purchase and a funded roof. If you are a tenant, landlord consent, the unexpired lease and dilapidations need to match the solar term, including assignment, reinstatement and what happens at a break. Planning permission, listed-building consent and conservation-area controls should be checked for the building in front of you. Non-domestic permitted development is not a blanket answer, and a quotation that assumes consent is not consent." } }, { "@type": "Question", "name": "What can a G99 grid connection change for a commercial array?", "acceptedAnswer": { "@type": "Answer", "text": "Larger commercial arrays are often beyond the small-scale notification route and need a distribution network operator application, widely referred to as G99 rather than G98. Exact thresholds, timescales and any reinforcement charges are regional, so take them from the operator for that postcode and from the current engineering recommendations. Export limits, queue time and connection works can shrink the buildable system or delay the date any saving starts, and that affects a purchase case and a PPA case in the same way. Do not treat a financial model or a go-live date as final before the connection position is known." } }, { "@type": "Question", "name": "Who maintains the array and replaces the inverters?", "acceptedAnswer": { "@type": "Answer", "text": "Under purchase, maintenance, insurance and replacement sit with the business unless an operations contract moves them. Under a lease or an on-site PPA they sit with the funder only where the contract says so. A brochure line that the provider takes care of everything is not the allocation. When comparing routes, keep inverter replacement visible on the purchase side and any price escalation visible on the funded side." } } ], "about": { "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#content" } }, { "@type": "WebPage", "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#webpage", "url": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/", "encoding": [ { "@type": "MediaObject", "encodingFormat": "text/markdown", "contentUrl": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk.md" }, { "@type": "MediaObject", "encodingFormat": "application/ld+json", "contentUrl": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk.schema" } ], "name": "Commercial solar leasing vs outright purchase: UK business", "headline": "Commercial solar leasing vs outright purchase: UK business", "description": "Commercial solar leasing vs outright purchase hinges on who owns the UK plant, how long you stay, and if daytime load, roof and connection can support it.", "isPartOf": { "@id": "https://kilowatts.uk/#website" }, "publisher": { "@id": "https://kilowatts.uk#organization" }, "inLanguage": "en-GB", "primaryImageOfPage": { "@type": "ImageObject", "url": "https://kilowatts.uk/uploads_resolved/images/822/960.webp", "width": 960, "height": 960 }, "breadcrumb": { "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#webpage-breadcrumb" }, "datePublished": "2026-09-29T01:28:04+00:00", "dateModified": "2026-06-23T08:37:10+00:00", "author": { "@type": "Person", "@id": "https://kilowatts.uk/authors/david-coleman/#person", "name": "David Coleman", "url": "https://kilowatts.uk/authors/david-coleman/", "sameAs": [ "https://kilowatts.uk/authors/david-coleman/", "https://www.linkedin.com/in/david-martyn-coleman/" ] }, "mainEntity": { "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#content" }, "relatedLink": [ "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/", "https://kilowatts.uk/resources/no-upfront-cost-commercial-solar-uk/", "https://kilowatts.uk/resources/solar-ppa-for-uk-smes-explained/", "https://kilowatts.uk/resources/how-commercial-solar-ppas-are-priced-uk/" ], "significantLink": [ "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/", "https://kilowatts.uk/resources/no-upfront-cost-commercial-solar-uk/", "https://kilowatts.uk/resources/solar-ppa-for-uk-smes-explained/", "https://kilowatts.uk/resources/how-commercial-solar-ppas-are-priced-uk/" ], "hasPart": [ { "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#related-articles" } ] }, { "@type": "ItemList", "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#related-articles", "name": "Related articles", "itemListOrder": "https://schema.org/ItemListOrderUnordered", "numberOfItems": 4, "isPartOf": { "@id": "https://kilowatts.uk/resources/commercial-solar-leasing-vs-outright-purchase-uk/#webpage" }, "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Investor-backed commercial solar finance: UK business guide", "url": "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/", "item": { "@type": "Article", "@id": "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/#content", "name": "Investor-backed commercial solar finance: UK business guide", "headline": "{_%entityLangFile->meta_title%_}", "url": "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/#webpage", "name": "Investor-backed commercial solar finance: UK business guide", "url": "https://kilowatts.uk/resources/investor-backed-commercial-solar-finance-uk/", "description": "Investor-backed commercial solar finance means a fund owns the UK array. 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