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The common form is an on-site power purchase agreement, with the corporate as host and offtaker. A roof or land lease, where the business may receive rent, is a different bargain and can suit a landlord with little on-site load. The label is not an accounting result. Whether the contract stays off the balance sheet depends on the reporting framework and the signed terms." } }, { "@type": "Question", "name": "Is an on-site solar PPA automatically off the balance sheet?", "acceptedAnswer": { "@type": "Answer", "text": "No. Paying nothing on day one does not, by itself, keep a solar contract off the balance sheet. The result depends on applying the entity's framework, often IFRS or FRS 102, to the signed contract, including control, term, price and end options. Whether the agreement is a lease is a judgement for the company and its auditor, not a feature a term sheet can promise. A parent and a subsidiary may also report the same array differently if they use different frameworks." } }, { "@type": "Question", "name": "How does a third-party PPA differ from the corporate owning the array?", "acceptedAnswer": { "@type": "Answer", "text": "Under a typical third-party arrangement the funder owns the modules, inverters and related plant, and the corporate buys the power and gives site access. Ownership instead means the business funds, controls and retains the plant, and usually carries maintenance and end-of-life condition unless an operations contract moves that work. The routes diverge on price risk, who may alter the roof, and what each party can claim at the end of the term. A performance promise to the funder does not automatically compensate the host if generation is down. 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Low daytime load can mean no offer even on a large roof, if too much of the generation would depend on export." } }, { "@type": "Question", "name": "How does a commercial network connection affect the timetable?", "acceptedAnswer": { "@type": "Answer", "text": "Larger commercial connections are commonly handled under the Energy Networks Association G99 process rather than G98. The correct route depends on capacity and on the distribution network operator, not on a marketing category. Export limits, constraints and new metering can delay a scheme or cut its size, so ordering equipment before the network offer is known can strand it. Supplying one host site is not the same as selling electricity to other customers, and licence questions need current official guidance. The network operator's timetable is not the funder's, and an application left until after financial close is late." } }, { "@type": "Question", "name": "How should a business compare a PPA price with its grid electricity?", "acceptedAnswer": { "@type": "Answer", "text": "Compare the contract price with the import tariff that site actually pays, not with a national average. Include standing charges and the time-of-use shape of the load the solar would displace. A lower unit rate does not prove a lower site cost, because indexation, on-site use, export terms, downtime and standing charges that do not fall with the array all change the result. A price that starts below today's import can later cross it if the index and the import tariff move differently. 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