Commercial solar and batteries
Commercial solar: buy, lease or power purchase agreement?
Should our business buy solar panels, lease them or use a PPA?
Buying can give the organisation ownership and more of the long-term benefit, while funded or power-purchase structures can reduce upfront capital. In return, funded arrangements usually create longer commitments around electricity purchase, property access, maintenance and exit. The right comparison uses whole-life cash flows, responsibilities and scenarios.
Written by Energy Guide editorial team · Specialist review: Pending · Source checked:
Buying the system
An outright purchase normally makes the business or property owner responsible for capital, insurance, maintenance and performance management. Test available capital against other investments and include inverter replacement, roof work, monitoring and end-of-life costs.
Funded and PPA structures
A third party may own the equipment and sell generated electricity to the occupier under a long agreement. Examine the price formula, minimum purchase or availability provisions, indexation, access rights, performance obligations and what happens on a sale, lease expiry or business interruption.
- Who owns each asset and environmental benefit?
- Who maintains, insures and replaces equipment?
- What price applies and how can it change?
- What happens if consumption falls?
- Can the property be sold, refinanced or vacated?
- Who pays for removal or roof works?
Use more than one scenario
Model expected, lower-generation and changed-occupancy cases. Obtain appropriate tax, accounting, property and legal advice: the energy forecast does not answer those questions.
Sources
These sources support the explanation above. Check the linked source for current rules and eligibility.