Further resources: see other comparisons to help you find your best-fit funding option
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.
For companies considering renewable energy, we act as their trusted advisor, not a seller of solar panels or PPA contracts.
That means:
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We model both options based on your energy use and business objectives
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We help you understand which funding route delivers better lifetime value according to your objectives and requirements
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We negotiate with funders and installers on your behalf
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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:
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You want full control over the system
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You have capital budget available
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You want to maximise lifetime ROI
You might prefer a solar PPA if:
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You want a fully funded, no-risk solution
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You want to protect cash flow and avoid Capex
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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:
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Buying the system outright, also referred to as Capex or outright purchase
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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:
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What’s the difference between a solar PPA vs purchase?
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Should I buy or lease solar panels?
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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.
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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Is it better to buy solar panels or get a PPA?It depends on your financial priorities. Buying solar panels delivers 100% of the savings but requires upfront investment. A solar PPA offers no-cost installation and discounted energy, which can make projects cash-positive from day one.
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What’s the difference between solar PPA vs purchase?A purchase means you fund and own the system yourself. With a PPA, a third party installs and maintains the system, and you simply buy the electricity it generates typically at a lower rate than your current supplier. The no-cost installation via PPA is an enabler for companies not in a position to pay the high upfront cost. An important point here though is that the length of term (usually around 25 years but can be as short as 15 years or as long as 35 years) can put some people off the idea of a PPA. In these cases, the benefits of shorter term funding options can enable projects. See our comparison of shorter term funding options linked in the Further Resources section below.
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Can I switch from a PPA later?Yes. PPA contracts offer the option to buy the system at a later stage or get out of the long term agreement. For transparency, funders usually show the cost of doing this, for every year of the agreement, as part of the quotation process.