Solar and energy finance: you don't need to find the capital upfront
There are several ways to fund solar, battery storage, EV charging, voltage optimisation and efficiency projects. The right one depends on your cash flow, your tax position and whether you want to own the asset.
We're not a lender. We compare the options with you and introduce you to specialist funding partners.
Zero capital
Power Purchase Agreement (PPA)
Power Purchase Agreement (PPA)
Zero capitalWhat it is
A long-term electricity supply agreement where a funder pays for, installs, owns, insures and maintains the system on your site.
How it works
- You buy the electricity it generates, paying only for what you use at an agreed per-kWh rate that is typically lower than grid prices.
- The tariff is based on installation, maintenance and insurance costs rather than the wholesale market, so it's more predictable.
- The funder handles surveys, grid connection, planning, installation, and ongoing maintenance and performance monitoring.
- Typical terms are 15 to 25 years.
Tax & accounts
No capital outlay. Payments are generally treated as an operating cost for electricity. You don't claim capital allowances, as you don't own the system.
End of term
You can usually extend the agreement, buy the system (often at fair market value or a nominal sum), take ownership as set out in the contract, or have it removed.
Best for
Businesses that want savings and lower carbon with no capex and no maintenance responsibility, and that have a long lease or own the building.
Own or use the equipment
Asset finance
Hire purchase
What it is
You spread the cost over fixed monthly payments and own the equipment once the final payment and any small option-to-purchase fee is paid.
How it works
Usually a deposit (often covering the VAT), then fixed payments, typically over 2 to 7 years. The finance is secured on the equipment itself, so it usually doesn't tie up other credit lines.
Tax & accounts
For tax purposes you're normally treated as the owner from day one, so you may be able to claim capital allowances (such as the Annual Investment Allowance) on the full cost, and the interest element is usually deductible. VAT is generally paid upfront and can be reclaimed if you're VAT registered.
End of term
You pay the final instalment and option fee and own the system outright, then keep all the savings.
Leasing
What it is
The funder owns the equipment and you pay a fixed rental to use it.
How it works
Fixed monthly rentals over an agreed term, with VAT charged on each rental.
Tax & accounts
Rentals are usually treated as an allowable business expense. The funder, not you, claims capital allowances.
End of term
Depending on the agreement, you typically continue on a reduced secondary rental, return the equipment, or it may be sold to a third party with you sharing in the proceeds.
Buy it outright
Business loan
Business loan
What it is
A loan from a lender or specialist green finance provider to buy the system outright.
How it works
You own the system from day one and repay capital plus interest over a fixed term, often 1 to 10 years. Loans may be secured or unsecured, and some green loans offer preferential rates for renewable projects.
Tax & accounts
You may be able to claim capital allowances as the owner, and interest is usually a deductible expense.
End of term
The loan is repaid and you own the asset outright.
At a glance
How the options compare
| Feature | PPA | Hire purchase | Leasing | Business loan |
|---|---|---|---|---|
| Upfront cost | None | Deposit (often the VAT) | None or low | None or low |
| Who owns the system | Funder | You (at end of term) | Funder | You, from day one |
| Who maintains it | Funder | You | You, unless agreed otherwise | You |
| Capital allowances | Not available to you | Usually yes | Claimed by funder | Usually yes |
| Typical term | 15–25 years | 2–7 years | Agreed term | 1–10 years |
| End of term | Extend, buy, take ownership or remove | You own it outright | Secondary rental, return or sale | You own it outright |
Compare your options
Book a free energy review and we'll compare funded and owned options for your site.
FAQ
Common questions
This is general information, not tax, legal or financial advice. Tax treatment depends on your circumstances and current legislation, so please speak to your accountant. All finance is subject to status and funder approval.