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The host supplies the roof or land and either buys the power, usually under an on-site power purchase agreement, or takes a rent for the space. It is not the same as a homeowner buying panels, or as a business buying the system or borrowing in order to own it. For the contract term, ownership, operation and the right to export or sell surplus usually sit with the investor, subject to the agreement. This guide does not set a domestic or commercial price, grant or standard contract length." } }, { "@type": "Question", "name": "How does an on-site solar PPA differ from a roof lease?", "acceptedAnswer": { "@type": "Answer", "text": "Under a typical on-site power purchase agreement, the investor pays for design, equipment and installation, keeps title to the plant, and sells the host electricity the array produces while the site is using power. The host's benefit is the gap between that agreed price and the import cost it avoids, and surplus export value usually stays with the investor unless the contract shares it. A roof lease reverses the payment: the host or landlord grants a right to occupy part of the roof or land and may receive rent, while the investor's revenue comes from export, a private wire or a sleeved supply. Where generation and consumption sit on different meters, extra metering and a clear energy customer are required." } }, { "@type": "Question", "name": "Does zero-capex or free solar mean the business pays nothing?", "acceptedAnswer": { "@type": "Answer", "text": "No. Zero-capex and free solar are labels for the same third-party ownership idea. They describe who pays for the plant, not a removal of the contract, the multi-year commitment or a price for power. If the host prevents generation, some agreements deem an output and still require payment. That clause should be read at the start, not left to a later dispute." } }, { "@type": "Question", "name": "What do investors check on a warehouse, office or shop before funding solar?", "acceptedAnswer": { "@type": "Answer", "text": "The first filters are remaining life of the roof covering, structural capacity, shading, orientation and whether the site can use a meaningful share of daytime generation. A warehouse with a broad, lightly shaded roof and a steady daytime load is a different proposition from an evening-trade shop or an office whose lease ends too soon for the fund. On retail parks and multi-let buildings, the party who controls the roof is often not the party who pays the electricity bill. There is no single official price for any building type, and this guide does not quote one." } }, { "@type": "Question", "name": "Can the grid connection or planning rules stop a funded commercial solar project?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. Commercial generation normally needs an application to the host distribution network operator, commonly under the G99 process rather than the small-scale G98 route. Exact thresholds, forms, fees and timescales are not fixed here and must come from current Energy Networks Association recommendations and the distribution network operator for the site. An export limit or a reinforcement cost can shrink the array, change the investor's case or stop the project after survey cost has been spent. Planning is a separate gate, rules differ across England, Wales, Scotland and Northern Ireland, and a listed building or conservation area can take a scheme off any permitted-development route that might otherwise exist." } }, { "@type": "Question", "name": "Is a commercial solar PPA guaranteed to cost less than grid electricity?", "acceptedAnswer": { "@type": "Answer", "text": "No. The useful comparison is the imported kilowatt-hours the array displaces while the building is drawing load, not export payments. A PPA rate is not guaranteed to stay below the business's grid import price for the whole term, because import prices move and a fixed or indexed price can finish higher or lower than the rate the host then faces. Standing charges are often barely touched, because they are not a unit rate. Indexation, a minimum offtake and deemed-generation clauses can matter more than the opening unit rate in a proposal." } }, { "@type": "Question", "name": "Can a tenant use investor finance if they do not own the building?", "acceptedAnswer": { "@type": "Answer", "text": "Only where the lease is long enough and the landlord will sign the documents the fund requires. A fund will look for a right that survives the tenant leaving, landlord consent, maintenance access, and a clear position on removal and making good. A tenant who cannot bind the roof beyond a break clause usually cannot complete the finance, even if the covering is ideal. Owner-occupiers with credible long-term occupation are generally the cleaner fit, and a short lease, a roof due for replacement, or a structure that cannot take the load is a poor fit." } }, { "@type": "Question", "name": "What should a business check on exit terms, tax and incentives before signing?", "acceptedAnswer": { "@type": "Answer", "text": "Read who owns the asset, who must take or pay for the electricity, and who may alter the roof or end the deal early. Contracts often restrict alterations, set a buyout or termination sum if the plant must come off, and allow the investor to assign the agreement to another fund. Business rates, VAT and any capital allowances depend on the contract structure and on current law, so a qualified adviser should review the draft for this building. 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