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Home / Commercial / Funding & finance
Commercial · Funding & finance

Fund your solar the way that suits your balance sheet.

Buy outright, spread the cost, or pay nothing upfront with a Power Purchase Agreement — plus the Welsh & local grants worth knowing about. Here's every route, in plain terms.

£0
Upfront with a PPA
3–6 yr
Typical CapEx payback
Up to £30k
Newport SME grant
25 yr+
Generation lifespan
Three ways to pay

CapEx, finance or PPA

The same system, three funding routes. The right one comes down to whether you'd rather own the asset or protect your cash.

Own it outright

CapEx purchase

You buy the system upfront. Every unit it generates is then effectively free power, and all the savings and export income are yours.

  • Best lifetime return — no interest or third-party margin
  • You own the asset and any capital allowances
  • Simple, no long contract
Best for: cash-rich sites wanting max ROI
Spread the cost

Asset finance

Fund the system through a lease or loan and pay over an agreed term. You still own it, and the repayments are often offset by the energy savings.

  • Keeps cash free for the core business
  • You own the asset at the end of the term
  • Repayments frequently below the savings generated
Best for: preserving working capital
Solar as a Service

Power Purchase Agreement

A funder installs, owns and maintains the system at no upfront cost. You simply buy the power it produces at an agreed rate, usually below the grid price.

  • Zero capital outlay and no maintenance risk
  • Immediate savings from day one
  • Long-term hedge against rising grid prices
Best for: energy-intensive sites, no capex
Not sure which fits? A quick assessment of your energy bills, roof and cash position tells us which route pays back fastest for you — no obligation.
In depth

How a PPA actually works

A Power Purchase Agreement removes the upfront cost of solar entirely. Here's the shape of it, start to finish.

01

Assessment

We model your site's usage, roof and load profile to size a system and confirm a PPA stacks up.

02

Funder installs & owns

A third-party funder pays for, installs, owns and maintains the system on your roof or land.

03

You buy the power

You pay only for the electricity generated, at an agreed rate typically below the grid price, for 15–25 years.

04

End of term

Buy the system, extend the agreement, or have it removed — the choice is yours.

Where a PPA wins

  • No capital outlay — the project sits off your cash flow
  • The funder carries performance and maintenance risk
  • Predictable, often cheaper energy costs from day one
  • Progress on net-zero and ESG without tying up funds

The trade-offs to weigh

  • Lower lifetime savings than buying — the funder takes a margin
  • A long contract, with exit terms to read carefully
  • You don't own the asset unless you buy it
  • Usually needs high daytime usage and a solid credit profile
Grants & incentives

Funding worth knowing about

Grants and schemes change and run in rounds, so always check the official source before you plan around them — we'll help you time an application.

G/01 · Business

Net Zero Newport decarbonisation

Recurring · check round

Match-funded grants plus free technical support for Newport SMEs decarbonising their buildings — covering equipment, installation and commissioning of solar, battery and efficiency measures.

Amount50% of costs, up to £30,000
WhoSMEs with premises in Newport City Council area
Funded byUK Shared Prosperity Fund (£250k pot)
Read the full guide →
G/02 · Business

Merthyr Tydfil Business Growth Grant

2026 round closed

Local Growth Fund support for business expansion, equipment and productivity for firms based or investing in Merthyr Tydfil. Solar, battery and EV kit can qualify as equipment investment.

TypeBusiness growth / capital grant
WhoEligible Merthyr Tydfil businesses
StatusClosed 3 July 2026 — watch for next round
Scheme details →
G/03 · Home

Warm Homes / Nest scheme

Open

Welsh Government energy-efficiency scheme for qualifying households. Free advice and funded insulation, heating upgrades or renewable measures depending on eligibility.

WhoLow-income or vulnerable Welsh households
Funded byWelsh Government
Check eligibility →
G/04 · Business

UK Business Energy Advice Service

Open

Free energy audits and advice for English and Welsh SMEs. Not a direct grant, but the audit report often identifies the quickest wins and helps strengthen future funding bids.

WhoSMEs in England & Wales
Funded byUK Government (DESNZ)
Book a free audit →
Disclaimer: Grant availability and criteria change. Always verify current status via the official scheme page before making investment decisions. We can help you understand timing and eligibility but do not administer any scheme.

Frequently asked questions

Not necessarily, but you do need the right to grant a long lease or roof licence to the funder for the term of the agreement. If you rent your premises we can work with you and your landlord on a suitable arrangement, or look at finance or CapEx instead.

Often yes. A grant typically reduces the upfront project cost, and the remaining balance can be paid via CapEx or asset finance. Funders differ on whether grant-funded systems can sit inside a PPA, so we confirm this on a case-by-case basis.

For a well-matched commercial system in South Wales, payback is commonly in the region of three to six years, with the panels generating for 25 years or more. Sites with high daytime electricity use and a good roof tend to pay back fastest.

The 0% VAT rate applies to residential and domestic solar installations until 31 March 2027. Commercial installations are generally standard-rated, but VAT-registered businesses can usually reclaim the VAT — we’ll point you to your accountant to confirm your position.

Buying outright (CapEx) delivers the best lifetime savings because there’s no third-party margin or interest. Finance and PPAs cost a little more over time, but remove the upfront barrier — so the ‘best’ route depends on your cash position and priorities.

Ready to see what solar saves your business?

Get a free, no-obligation energy assessment — or try the quick estimator to model the numbers yourself.