Advisory service
PPA & Financing Advice
Should you buy the system outright, lease it, or sign a solar power purchase agreement (PPA) and simply buy the power? We model each route, explain where the risk and reward sit, and help you negotiate terms that work for your balance sheet.
There are three broad ways to fund commercial solar: buy it outright, lease the equipment, or sign a power purchase agreement (PPA) and simply buy the electricity it produces. Each moves the balance of capital, risk and reward differently, and the right answer depends on your cost of capital and appetite for owning the asset.
We model all three, explain a solar PPA in plain terms — tariff, term, indexation and end-of-term options — and review the heads of terms or contract before you commit. The goal is a funding route you understand well enough to defend, with no surprises buried in the indexation or buy-out clauses.
What it delivers
- A side-by-side comparison of outright purchase, lease and on-site PPA
- A plain-English explanation of PPA structure — tariff, term, indexation and end-of-term options
- The balance-sheet and cash-flow implications of each route
- Review of heads of terms and PPA contracts before you sign
- Support negotiating tariff, length and buy-out clauses with the funder or developer
Outcomes
- The funding route matched to your cost of capital and appetite for risk
- PPA terms you understand and can defend
- No nasty surprises buried in indexation or buy-out clauses
Frequently asked questions
What is a solar PPA?
Under a power purchase agreement (PPA), a funder installs and owns the system on your roof or land and sells you the electricity it generates — usually below grid price — over a fixed term. You get the power without the capital outlay.
Is a PPA always cheaper than buying outright?
No. Outright purchase usually gives the best lifetime return if you have the capital; a PPA trades some of that return for zero upfront cost and transferred risk. We model both so the choice is clear.
Talk to us about ppa & financing advice
An initial consultation is free and carries no obligation. Tell us about your organisation and the site or estate you're weighing up.