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You normally receive the benefit of the electricity generated, including reduced grid imports and any export payments where available, but you are also responsible for monitoring, maintenance, insurance, and replacement parts unless warranties or service agreements cover them. A solar PPA is a long-term contract to buy electricity from a solar system installed on your property but owned and operated by a third-party provider." } }, { "@type": "Question", "name": "Which option usually saves more money in the long term?", "acceptedAnswer": { "@type": "Answer", "text": "Funded ownership usually offers the highest long-term savings if the system is well designed, finance costs are reasonable, and you stay at the property long enough to benefit. This is because you keep more of the value from avoided grid imports and any export income. A PPA can still reduce electricity costs and remove much of the upfront cost, but the provider must recover installation, finance, maintenance, legal, operational, and profit costs through the electricity rate." } }, { "@type": "Question", "name": "Is a solar PPA the same as free solar?", "acceptedAnswer": { "@type": "Answer", "text": "No. A solar PPA is not free solar. It usually reduces or removes the upfront installation cost, but you commit to buying electricity generated by the system under a long-term contract. The real cost depends on the PPA rate, annual indexation, contract length, minimum purchase rules, deemed generation clauses, buyout terms, export ownership, and end-of-contract obligations." } }, { "@type": "Question", "name": "Are PPAs common for UK homes?", "acceptedAnswer": { "@type": "Answer", "text": "Solar PPAs are much less common for typical UK homes than funded ownership. Most homeowners who install solar use cash, loans, or other finance to own the system. Older rent-a-roof style arrangements have sometimes caused issues with mortgages, conveyancing, roof access, leases, roof works, and property sales, so homeowners should be cautious about any third-party ownership arrangement attached to the roof." } }, { "@type": "Question", "name": "When is funded ownership likely to be the better choice?", "acceptedAnswer": { "@type": "Answer", "text": "Funded ownership is usually a better fit if you can access affordable finance, expect to remain in the property for several years, have a roof with a long remaining life, and want control over the system. It is also attractive if you want flexibility to add a battery, install EV charging, change export tariffs, choose maintenance arrangements, upgrade equipment later, or avoid a long-term obligation to buy electricity from a third-party provider." } }, { "@type": "Question", "name": "When is a solar PPA likely to be the better choice?", "acceptedAnswer": { "@type": "Answer", "text": "A solar PPA can be suitable for commercial organisations that want solar without using capital upfront. It is most likely to work well on large, structurally suitable roofs with strong daytime electricity demand, long-term occupancy, clear landlord and lender consent, and a contract with fair pricing, transparent indexation, practical buyout terms, enforceable maintenance standards, and clear roof access arrangements." } }, { "@type": "Question", "name": "How long does a solar PPA usually last?", "acceptedAnswer": { "@type": "Answer", "text": "An onsite solar PPA in the UK commonly lasts around 10 to 25 years. The exact term matters because it affects property flexibility, sale or lease arrangements, roof works, buyout costs, and the total amount paid for electricity. A low starting tariff should always be assessed over the full contract term, including indexation and any circumstances where charges may still apply even if your electricity demand changes." } }, { "@type": "Question", "name": "What should I check in a PPA contract?", "acceptedAnswer": { "@type": "Answer", "text": "Key points include the contract length, starting electricity rate, indexation method, minimum purchase obligations, deemed generation clauses, export ownership, metering method, billing process, data access, maintenance response times, downtime rules, roof access rights, insurance responsibilities, landlord and lender consent, early termination costs, buyout formula, sale or assignment rights, change-of-control provisions, and what happens at the end of the term." } }, { "@type": "Question", "name": "Why does roof condition matter so much?", "acceptedAnswer": { "@type": "Answer", "text": "Solar PV can remain in place for decades, so the roof beneath it needs enough remaining life to justify the installation. If the roof needs replacement or major repair during the finance or PPA term, removing, storing, reinstalling, recommissioning, and testing the system can add significant cost and disruption. Roof condition is especially important under a PPA because the provider’s asset is physically attached to the building and the contract should say who pays for removal, reinstatement, and making good." } }, { "@type": "Question", "name": "What happens if I sell the property?", "acceptedAnswer": { "@type": "Answer", "text": "With funded ownership, an owned solar PV system is usually simpler to explain during a sale if documentation is complete, including certificates, warranties, DNO records, export tariff details, and maintenance history. With a PPA, the contract may need to be assigned to the buyer or bought out, and the buyer, lender, landlord, or solicitor may have concerns about roof rights, long-term payment obligations, termination terms, and future roof works. Sale provisions should be checked before signing." } }, { "@type": "Question", "name": "Who maintains the solar panels?", "acceptedAnswer": { "@type": "Answer", "text": "With funded ownership, you are normally responsible for monitoring, maintenance, insurance, cleaning where needed, and replacing components outside warranty unless you have a maintenance agreement. With a PPA, the provider usually operates and maintains the system, but the contract should clearly state response times, performance obligations, downtime rules, monitoring standards, access requirements, and who is responsible for damage, roof-related disruption, and loss of generation." } }, { "@type": "Question", "name": "What happens at the end of a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "The PPA should clearly state whether the system is removed, transferred to you, sold to you through a buyout, or kept in place under an extended agreement. It should also explain who pays for removal, reinstatement, testing, roof repairs, electrical works, and any making-good obligations. These terms should be understood before signing, not left until the end of the contract." } }, { "@type": "Question", "name": "Does export income make a big difference?", "acceptedAnswer": { "@type": "Answer", "text": "Export income can help the economics, but using solar electricity on site is usually more valuable than exporting it. Imported electricity normally costs more than the amount paid for exported electricity, so self-consumption is a major driver of savings. Under a PPA, export revenue may belong to the provider unless the contract says otherwise, so export ownership should be checked before comparing proposals." } }, { "@type": "Question", "name": "Should I include battery storage in the comparison?", "acceptedAnswer": { "@type": "Answer", "text": "Battery storage can improve self-consumption and may add resilience or help with time-of-use tariffs, but it does not always pay for itself. The comparison should include battery cost, usable capacity, efficiency losses, degradation, warranty limits, replacement risk, and the value of the extra solar electricity used on site. Batteries should be modelled separately rather than assumed to be automatically worthwhile." } }, { "@type": "Question", "name": "What financial assumptions should I compare?", "acceptedAnswer": { "@type": "Answer", "text": "Compare installed cost or PPA rate, finance interest, arrangement fees, deposit, annual generation, panel degradation, self-consumption, import tariff assumptions, export tariff, maintenance costs, inverter replacement, monitoring, insurance, PPA indexation, contract length, buyout costs, roof works risk, VAT, tax, and accounting treatment where relevant. The best comparison uses the same technical and financial assumptions for both options." } }, { "@type": "Question", "name": "How do DNO limits affect funded ownership and PPAs?", "acceptedAnswer": { "@type": "Answer", "text": "DNO approval can affect the system size, export level, connection cost, and project timescale under both routes. Some systems can proceed through simpler notification processes, while larger or more complex systems usually need approval before installation. The local network may allow export, restrict export, require export limitation equipment, or require reinforcement. A proposal should not be judged only by how many panels fit on the roof; it should also reflect what the grid connection can sensibly accept." } }, { "@type": "Question", "name": "Can tenants use funded ownership or a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "Tenants may be able to use either route, but the solar arrangement must work with the lease. Landlord consent, roof access rights, reinstatement obligations, insurance, roof warranties, lease expiry dates, break clauses, and responsibility for electricity bills all matter. A PPA is especially sensitive if the PPA term is longer than the lease, because the tenant may be left with obligations that are difficult to control after leaving the property." } }, { "@type": "Question", "name": "Are there tax, VAT, or accounting differences?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, especially for businesses. Outright purchase, hire purchase, asset finance, leasing, and PPAs can be treated differently for VAT, tax, capital allowances, budgeting, and balance sheet purposes. The best option can depend on the organisation’s structure, tax position, finance policy, and accounting treatment. Commercial buyers should take professional advice before relying on projected returns." } }, { "@type": "Question", "name": "Do I need professional advice before signing?", "acceptedAnswer": { "@type": "Answer", "text": "For homeowners buying a standard owned system, good installation documentation, clear finance terms, MCS certification where relevant, DNO records, warranties, and electrical certification are usually the main priorities. For commercial PPAs, professional advice is strongly recommended because the agreement can affect energy costs, property rights, accounting treatment, tax, landlord consent, lender consent, insurance, roof warranties, and future sale or redevelopment plans." } } ], "about": { "@id": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1/#content" } }, { "@type": "WebPage", "@id": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1/#webpage", "url": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1/", "encoding": [ { "@type": "MediaObject", "encodingFormat": "text/markdown", "contentUrl": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1.md" }, { "@type": "MediaObject", "encodingFormat": "application/ld+json", "contentUrl": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1.schema" } ], "name": "Funded ownership vs PPA in the UK", "headline": "Funded ownership vs PPA in the UK", "description": "A solar PPA usually reduces upfront cost and operational responsibility.", "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/495/1280.webp" }, "breadcrumb": { "@id": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1/#webpage-breadcrumb" }, "datePublished": "2026-07-19T15:07:22+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/funded-ownership-vs-ppa-in-the-uk-1/#content" } }, { "@type": "ItemList", "@id": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1/#related-articles", "name": "Related articles", "itemListOrder": "https://schema.org/ItemListOrderUnordered", "numberOfItems": 4, "isPartOf": { "@id": "https://kilowatts.uk/resources/funded-ownership-vs-ppa-in-the-uk-1/#webpage" }, "itemListElement": [ { "@type": "ListItem", "position": 1, "item": { "@type": "Article", "@id": "https://kilowatts.uk/resources/what-happens-at-the-end-of-a-commercial-solar-ppa/#content", "url": "https://kilowatts.uk/resources/what-happens-at-the-end-of-a-commercial-solar-ppa/", "name": "What happens at the end of a commercial solar PPA?" } }, { "@type": "ListItem", "position": 2, "item": { "@type": "Article", "@id": "https://kilowatts.uk/resources/can-you-buy-out-a-solar-ppa-in-the-uk/#content", "url": "https://kilowatts.uk/resources/can-you-buy-out-a-solar-ppa-in-the-uk/", "name": "Buying out a solar PPA in the UK: separating fact from fiction" } }, { "@type": "ListItem", "position": 3, "item": { "@type": "Article", "@id": "https://kilowatts.uk/resources/how-does-a-solar-ppa-work-in-the-uk-commercial-solar-finance/#content", "url": "https://kilowatts.uk/resources/how-does-a-solar-ppa-work-in-the-uk-commercial-solar-finance/", "name": "How does a solar PPA work in the UK? 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