Should you lease solar panels for your business renewable energy project? Here’s what to consider
- Gary Carter
- Jun 20
- 3 min read
Updated: Jun 30
Leasing solar panels: good move or missed opportunity?
If your business is exploring solar but doesn’t want to tie up capital, leasing might be the route you’re looking for.
With energy costs remaining volatile and sustainability targets gaining urgency, many UK organisations are looking for affordable and pragmatic ways to enable renewable energy. Many ask the question “can we lease solar panels instead of paying for them upfront”?
The short answer is yes. And in many cases, it’s the difference between a project happening or not.
This post breaks down what leasing actually means, how it compares to other solar funding models, and what you need to think about before deciding.
What does It mean to lease solar panels?
When you lease solar panels, you don’t pay for the installation upfront. Instead, a funder covers the cost, and your business repays in monthly instalments over several years.
This structure can include:
Asset lease (you rent the system, with an option to buy later)
Hire purchase (you pay in instalments and own the system at the end)
Either way, the project can be cash-positive from day one meaning your monthly energy savings exceed the monthly repayments. Your energy cost savings then increase exponentially after the finance term completes.
Hire purchase vs asset lease: quick breakdown
Hire purchase | Asset lease | |
Do you own it? | Yes, at the end | Only if you buy it later (for a nominal sum) |
VAT paid | Upfront | Monthly |
Balance sheet impact | Yes | Sometimes no |
Best for | Long-term ROI | Cash flow and flexibility |
Choosing the right option depends on how your business manages cash, assets, VAT, and investment approvals. Speak to your accountant for advice about these options that’s contextual to your business.
Why businesses choose to lease solar panels
Leasing is becoming a popular choice because it:
Removes the barrier of large capex
Keeps cash free for other projects
Enables faster decision-making
Helps achieve sustainability goals without budget constraints
Delivers strong savings over the long term
At Optify, we’ve helped clients structure zero-upfront cost solar projects that generate six-figure lifetime savings and beyond.
Want a more detailed guide?
We’ve created a full guide to solar leasing and asset finance that walks you through:
The differences between hire purchase and lease
Pros and cons of each
What questions to ask before choosing a route
How to model ROI from both options
Next step: see what it could look like for you
Ready to see what a lease-financed solar solution might save your business?
No obligation. No guesswork. Just a clear picture of what’s possible.
Arrange a free renewable energy feasibility study to see how leasing and other best-fit funding options can be the springboard to energy cost transformation.
Try our free Renewable Energy Feasibility Kickstarter Tool for a quick headline assessment of the art of the possible for your business to transform energy costs.
Final thought
If capex is the only thing stopping your solar project, leasing could unlock the savings, without the spend.
Optify helps clients build a watertight business case for renewable energy based on the principles of affordability, maximising returns and aligning projects to your commercial objectives.
We're commercial advisors helping to optimise value creation for maximum impact on your P&L. We act for you throughout a project to ensure installation and funding partners stay aligned to project objectives to ensure the best outcome possible.
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