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CAPEX means the business funds and owns the plant, from its own money or from borrowing or asset finance it arranges. An on-site power purchase agreement usually means a third party funds, owns and operates the plant while the business buys the electricity generated at an agreed price for an agreed term. Pay as you go is not a defined term in UK regulation: some providers mean a genuine on-site PPA, and others mean a lease, hire or service contract, sometimes with a fixed charge rather than a price per kilowatt-hour." } }, { "@type": "Question", "name": "Is this comparison for homeowners?", "acceptedAnswer": { "@type": "Answer", "text": "No. It is a decision for a facilities, finance or sustainability lead at a warehouse, office, shop or retail park, not a domestic quote. The modules, inverters and building connection can look similar across routes, but that does not make the paperwork a household product. After signature the business still has to deal with roof access, landlord consent, monitoring and the host distribution network operator's timetable." } }, { "@type": "Question", "name": "Who owns the system and who pays for repairs?", "acceptedAnswer": { "@type": "Answer", "text": "Ownership follows the written contract, not the sales label on the proposal. Under CAPEX the business owns the system, and maintenance, monitoring and inverter replacement sit with the owner unless a separate operation and maintenance contract says otherwise. A loan or hire purchase does not by itself make the deal a PPA. On a funded route, repairs are often the funder's job only to the extent the offtake contract, the roof licence and the maintenance schedule say so, so check who would own the panels, inverters, meters and monitoring login." } }, { "@type": "Question", "name": "Does no upfront cost mean the solar is free?", "acceptedAnswer": { "@type": "Answer", "text": "No. You either pay for the asset, or you pay for electricity or a service from an asset someone else owns. Funded customers pay through the energy price, and sometimes through a minimum offtake, a clause that keeps charges running when generation is paused, or an early-termination sum. The funder prices in capital, operations and a return, which can still be a sound deal if daytime use and tenure support it, but it is not a discount by definition. CAPEX is not automatically the lowest-cost route either, because it concentrates spend at the start and leaves performance, maintenance and residual value with the owner." } }, { "@type": "Question", "name": "Which route fits capital, lease length and daytime load?", "acceptedAnswer": { "@type": "Answer", "text": "CAPEX suits organisations that can fund the plant, expect to control the roof for a period they accept, want the generation and will run a maintenance plan. It is a weak use of capital if occupation is short, the roof will be replaced inside the period needed to justify the spend, or the business has a better use for the money. PPA and pay-as-you-go funding suit occupiers with enough daytime consumption, a credit profile a funder will accept, and a lease or landlord roof agreement that covers the term. They are a weak fit for a small roof, low or highly seasonal daytime load, a connection cost that swamps the project, or a business that needs to alter the roof freely. Minimum size, contract length and buy-out sums are provider-specific, and there is no UK standard term sheet." } }, { "@type": "Question", "name": "Can the roof or the local network stop every option?", "acceptedAnswer": { "@type": "Answer", "text": "Yes. Structure, remaining roof life, asbestos, fire separation, access, shading, orientation and the roofing warranty can rule a site out before funding is discussed. A failed structural survey, a building that lacks the consent it needs, or a site without safe access for the life of the plant suits none of the routes. Connection often sets both programme and cost, whether the buyer is the occupier or a funder: larger commercial arrays commonly need a G99 application, and the host operator may limit export, require works or extend the timetable. Exact thresholds and process steps have to come from the current ENA engineering recommendations and that operator, not from another project's paperwork." } }, { "@type": "Question", "name": "Will on-site solar remove the business energy bill?", "acceptedAnswer": { "@type": "Answer", "text": "No. Solar does not take a commercial site off the grid, and night load, peaks and a dull week still come from the supplier. The usual case is lower imported electricity behind the meter, with export treated as secondary, and that split is site-specific so it is not stated as a fixed percentage. Standing charges, and capacity or availability charges on many half-hourly supplies, are not removed by on-site generation. A PPA price below the current unit rate does not mean the bill falls by that margin every year, because grid prices move, the contract may escalate, and night and peak import remain." } }, { "@type": "Question", "name": "Which contract terms change the real cost?", "acceptedAnswer": { "@type": "Answer", "text": "Headline price is where many comparisons go wrong. A third-party contract needs a roof lease or licence, access for maintenance, and a written position on who pays to remove and refit panels, and whether payments pause while the array is off for roof repairs. Match the term to remaining roof life and the occupational lease, not to a generic module warranty, which varies by product and should be read from the datasheet. Also check whether payment tracks generation, on-site use, or a minimum that falls due even in a poor month, and who owns the meters and the monitoring login. 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