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Final word

Don’t let the wrong funding choice stop a valuable project. Whether you're leaning towards a solar PPA or considering using your capital budget, the best solution is the one designed around your business objectives not an installer’s standard model.

Further resources: see other comparisons to help you find your best-fit funding option

Green shoots emerging from a pot of money

Specialist green finance

See our funding comparison and see why specialist green finance is a better fit for renewable energy projects than traditional loan finance

Financial planning documents

Funding options side-by-side

Our full guide on renewable energy funding options compares the benefits of asset finance funding options as well as PPA compared with using capex

Ready to compare your options?

For companies considering renewable energy and wanting to independently assess best-fit funding options with a view to achieving optimum savings, we offer a free, data-driven feasibility study to show you exactly how buying or funding a solar project could impact your business.

A calculator and financial documents

For companies considering renewable energy, we act as their trusted advisor, not a seller of solar panels or PPA contracts.

That means:

  • We model both options based on your energy use and business objectives

  • We help you understand which funding route delivers better lifetime value according to your objectives and requirements

  • We negotiate with funders and installers on your behalf

  • We design your project for cash flow, not complexity

 

Our proprietary methodology, The Optify Edge, designed to optimise business outcomes from renewable energy, has helped businesses achieve up to 30% greater lifetime savings than with non-optimised standard installations.

Whether you buy solar panels or use a PPA, we’ll make sure it’s the right solution for your business.

Where Optify can help

Which option makes the most commercial sense?

There’s no one-size-fits-all answer. This depends on your financial strategy, risk appetite, goals, and appetite for ownership.

You might prefer buying solar panels if:

  • You want full control over the system

  • You have capital budget available

  • You want to maximise lifetime ROI

 

You might prefer a solar PPA if:

  • You want a fully funded, no-risk solution

  • You want to protect cash flow and avoid Capex

  • You prefer a hands-off approach to ownership and maintenance

 

For many clients we work with, the real comparison is all about how they can fund a project in a way that aligns with their commercial goals.

Solar PPA vs buying at a glance

Feature
Buying Solar Panels
Power Purchase Agreement (PPA)
Maintenance
You manage and pay for it
Covered by the PPA provider
Energy bill savings
100% of generated energy is free
You pay a discounted rate for energy generated at your site
Upfront cost
Full Capex investment required
£0 upfront, project is fully funded
Ownership
You own the system outright
Third party owns and maintains the system

Capex or external funding: one of the biggest renewable energy decisions you’ll make

If you’re exploring solar energy for your business, you’ve likely come across two* common funding routes:

  • Buying the system outright, also referred to as Capex or outright purchase

  • Entering a power purchase agreement (PPA) where a third party owns and operates the system

 

So, which is better?

This guide breaks down everything you need to know about buying solar panels vs a PPA, and answers the common variations on the same question:

  • What’s the difference between a solar PPA vs purchase?

  • Should I buy or lease solar panels?

  • What’s the smartest way to fund commercial solar in 2025 and beyond?

 

Let’s compare the options and help you decide what fits your business best.

* For the purposes of this comparison, we’re just looking at Capex and PPA. We’ve compared other funding options as well, all linked at the bottom of this page.

Solar Panels on Factory Building

Compare buying solar panels vs PPA: best fit funding for commercial renewable energy

How to work out what's best for your business: this impartial guide looks into the good, and the bad, of power purchase agreements (PPA) and compares them with funding renewable energy projects from your capital budget. As independent advisors, we’re not tied to funding providers or installation companies, so we’re perfectly placed to tell you like it is. It’s our job to help you maximise the benefits from renewable energy according to your circumstances and requirements and the way projects are funded plays a big role in helping you achieve this.

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