No-upfront-cost commercial solar: how solar PPAs and leases really work

Free commercial solar: the short answer

Free commercial solar panels: what's real and what isn't

Search "free solar panels for business" and you'll find adverts promising free commercial solar. Some are genuine funded offers. None of them are a government grant. There is no single national grant that pays for business solar, batteries or efficiency upgrades in England. The money comes from tax allowances, the business rates exemption, export payments, the Boiler Upgrade Scheme, the Workplace Charging Scheme and local or sector funds.

The public sector is the one place government money pays for panels directly, and even there you can't apply. The Public Sector Decarbonisation Scheme closed to applications in November 2024 and no new phase has been announced. The government's own Great British Energy solar programme for schools and NHS sites works with sites the government selects, and gbe.gov.uk lists no application route (checked 28 October 2026).

So when a business is offered "free" solar, it almost always means one thing: someone else pays for the system and owns it, and you pay them back through the electricity you buy or a rental. That can be an excellent deal. It can also lock you into a long contract on worse terms than you'd get by buying. The rest of this page shows you how to tell the difference.

Four ways to get solar with no upfront cost

1. On-site solar PPA (power purchase agreement)

A funder designs, pays for, installs, owns and maintains the system on your roof or land. You agree to buy the electricity it generates, at a price per kWh set in the contract, for the length of the contract. You pay nothing upfront and you only pay for units you use. This is the model most people mean by a solar PPA or commercial solar PPA. Because the power goes straight from your roof into your building, it's sometimes called a private-wire PPA.

2. Solar lease

A leasing company owns the system and you pay a fixed rental, usually monthly or quarterly. Unlike a PPA, you pay the same whatever the panels generate, and every unit you use is yours. Who maintains it depends on the lease. Under an operating lease, the leasing company owns the kit and claims the allowances.

3. Asset finance or hire purchase

You pay in instalments and own the system at the end, or from the start under some loans. This is "no upfront cost" in cash-flow terms only: it's your system, so the savings, the export income and the capital allowances are yours. GOV.UK confirms you can claim allowances on hire purchase, on all the capital payments once the system is in use, but not on the interest.

4. Rent-a-roof

A developer leases your roof or land, installs the system and runs it as their own project. Depending on the deal, they may pay you a rent, sell you some of the power, or export it all. Rent a roof solar suits owners of big roofs who use little electricity themselves, because the value comes from the roof space rather than your bills.

Solar PPA vs lease vs buying: comparison table

Who gets what under a lease, PPA or roof lease depends on the contract. Read the terms rather than relying on this table. Capital allowance rules: GOV.UK.

What funders look for before offering a PPA or lease

A funder is betting their money on your roof and your business for many years. That's why funded offers usually go to bigger sites, and why smaller roofs are more often steered towards buying or asset finance. Expect them to check:

• Roof size and condition. Enough usable area to make the project worth their while, and a roof with enough remaining life that it won't need replacing during the contract. Older industrial roofs may need a structural and asbestos check first.
• Tenure. Freehold, or a lease that runs well beyond the contract. If you're a tenant, they'll want your landlord's consent, and often the landlord to sign as well.
• Credit strength. Several years of filed accounts and a sound credit record. Under a PPA the funder is relying on you to buy the power, so your covenant matters as much as the roof.
• Daytime electricity use. A PPA funder is paid per unit you use, so high, steady daytime demand is what makes the numbers work. Expect to share 12 months of bills or half-hourly data.
• Grid connection. The distribution network operator may limit how much the system can export, which can shape the design.
• Consents. Most roof-mounted commercial solar in England is permitted development (the old 1MW cap was removed in December 2023), but bigger non-microgeneration systems need prior approval on glare, and listed buildings always need consent. A mortgage lender may also need to consent.

Sectors that tend to fit: warehouses and logistics, factories, cold stores, large retail and farms with big sheds.

Solar PPA contract red flags: what to check before you sign

Have a solicitor read any PPA, lease or roof lease before you sign. They are long, building-specific contracts, and the terms vary a lot between funders.

When buying outright beats a solar PPA

The big advantage of buying is that everything the system produces is yours: the full unit rate saved on every kWh you use, the export income, and the tax relief. Solar panels are special-rate plant for tax. The Annual Investment Allowance (£1 million a year) can write off the cost in year one. Above that, companies can claim the 50% first-year allowance. For a profitable company paying the 25% main rate of Corporation Tax, the AIA cuts the net cost of a system by a quarter in year one. See our solar panels capital allowances guide for worked examples.

• Buying usually wins if you're profitable, own the building or have a long lease, and have the cash or can borrow at a sensible rate. You keep the savings for the life of the panels, not just after a contract ends.
• Asset finance is the middle ground for profitable businesses short of cash: no big upfront payment, but the allowances and savings are still yours.
• A PPA or lease can win when you don't want capital tied up, you have little taxable profit to set the allowances against, or your board won't approve the spend. You trade part of the saving for not owning or maintaining the kit, but you take on contract risk (term, indexation, minimum take).
• Rent-a-roof suits big roofs with low on-site demand, where your own bills couldn't justify a system.

To compare fairly, ask any installer to model the same system both ways over the same period: an outright purchase (with the allowance, bill savings, export income and maintenance) against the PPA or lease (with the contract rate, indexation and any buyout). For the costs to plug in, start with business solar panel costs: DESNZ puts 10-50kW systems at a median £1,262/kW installed in 2025/26.

Other ways to fund commercial solar without paying it all upfront

• Wales: The Development Bank of Wales Green Business Loan Scheme lends £1,000 to £1.5 million over up to 15 years, at a discounted rate and with no arrangement fee, for projects including solar PV and heat pumps. It also offers an energy audit grant of up to £10,000.
• Scotland: Business Energy Scotland's SME Loan lends £1,000 to £130,000 interest-free, with cashback of up to £20,000 on energy-efficiency work and £10,000 on heat pumps. It is not taking new applications for solar PV.
• Business rates: In England, on-site solar, and battery storage that mainly stores renewable power, are left out of your rateable value until 1 April 2035, so adding panels doesn't push up your business rates. Wales and Scotland have similar exemptions to 2035.
• Export payments: The Smart Export Guarantee pays for solar you export, on systems up to 5MW in Great Britain. Suppliers set their own rates; the law only says the rate must be above zero, so shop around.

For every grant, loan and tax route in one place, see commercial solar panel grants and our business energy grants hub.

What to prepare before you ask for a funded solar quote

1. Electricity data. 12 months of bills, or half-hourly data if you have it. This sets the system size and the PPA price.
2. Roof information. Drawings, age, last repairs and any known asbestos or fragile roof lights.
3. Tenure. Your title, or your lease with its expiry, breaks and alteration clauses, plus your landlord's contact if you're a tenant.
4. Accounts. Your last few years of filed accounts for the funder's credit check.
5. Your plans. Any intention to sell, move, expand or re-roof in the coming years. These shape the right term and exit terms.
6. Both quotes. Ask for an outright purchase price alongside any funded offer, so you can compare like for like.

We'll pass your enquiry to one suitable commercial installer. You won't be passed round a list or sold on.