Buying solar panels vs PPA or leasing: which solar funding option is right for your business?
- Gary Carter
- Jun 18
- 2 min read
Updated: Jun 30
There’s more than one way to fund renewable energy projects. Which one is right for you?
If your business is considering renewable energy, the biggest question often isn’t what to install it’s how to fund it.
And when it comes to solar, you have three main options:
Buy the system outright
Lease solar panels through asset finance
Enter a power purchase agreement (PPA) and pay only for the energy
In this post, we’ll walk you through the key differences between buying solar panels vs PPA, and where leasing fits into the mix so you can make a confident, cash-smart decision.
Option 1: buying solar panels
The traditional route. You pay upfront, you own the system, and you get 100% of the savings.
Best for:
Businesses with capex available, long-term stability, and a desire to own the asset.
Things to consider:
Higher upfront cost
VAT is payable at the outset
Strongest ROI over the lifetime of the system
Option 2: Leasing solar panels (asset finance)
Leasing allows you to spread the cost over time either through hire purchase (own it at the end) or an asset lease (option to buy later).
Best for:Businesses who want to go solar without tying up capital but still want ownership eventually.
Things to consider:
Flexible repayment structure
Monthly payments usually lower than energy bill savings
Cash-positive from year one
Option 3: Power purchase agreement (PPA)
With a PPA, a third party installs and owns the system. You just buy the electricity it generates at a discounted rate.
Best for:
Businesses with no capex available or those who want a hands-off solution with predictable costs.
Things to consider:
No ownership
Long-term contracts (typically 15–25 years)
No maintenance responsibility
Off-balance-sheet (in most cases)
You can read our full guide on buying solar panels vs PPA via the button below showing how both approaches can be relevant according to your circumstances and objectives.
Buying solar panels vs PPA or leasing: choosing the right path for your business - key questions to ask
Do we have the capex to fund this project?
Do we want full ownership, or are we happy to rent the solution?
Is cash flow or balance sheet flexibility more important to us?
How quickly do we need the project to pay for itself?
Our recommendation?
If you're trying to compare solar PPA vs purchase or wondering whether to lease solar panels instead of buying, don’t guess.
At Optify, we model all three routes for your specific site, energy profile, and commercial priorities so you can see exactly which option delivers the best savings, structure, and business case.
Next step: see the full comparison side-by-side
Read our full comparison guide to explore in detail the relevant options for funding a renewable energy project.
OR
Try our free Renewable Energy Feasibility Kickstarter Tool to model what your lifetime savings could be with various funding options.
Final thought
There’s no one “best” way to fund solar only the best way for you. Don't under estimate the impact of choosing the best-fit funding option on your bottom line. We’re here to help you find it.
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