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Finance options

Four ways to pay for commercial solar.

Most installers sell you one way to pay. We model your roof and your bills against all four, so you choose with the full picture.

Get your free solar assessment See the comparison
Our installer, Solar4Business, is rated 4.6 out of 5 on Trustpilot.
Installation partnerSolar4Business
Funding partnerINICIO Funding Solutions
Projects delivered for
  • Kingspan
  • Hepworth Clay
  • Swanlea School

Every way to pay, in detail

Jump to the route that fits your business, or read them side by side below.

Start here

Switch and save now

Review your electricity tariff whilst planning your solar installation

  • UpfrontNothing
  • TimescaleContract dependent
  • You ownNothing changes
  • TermYour next contract

We review your current supply contract, unit rates and standing charges against the market and move you to a better deal while the solar project is designed. Any switch depends on your current contract, available tariffs and exit fees.

Best for: Any business on an out-of-contract or uncompetitive tariff

Ask about this route
Own from day one

Buy outright

Pay upfront, keep every pound of the saving

  • UpfrontFull system cost
  • PaybackModelled for your site
  • You ownThe system, day one
  • Tax reliefAIA, if eligible

Keep the savings from the energy your system generates. You fund the installation, claim capital allowances against the cost, and every unit generated is yours for 25 years or more.

Best for: Profitable businesses with cash or an existing facility, and a long lease or freehold

Ask about this route
Spread the cost

Hire purchase

Spread the cost, with ownership at the end of the agreement

  • UpfrontNil or small deposit
  • Term5 to 10 years
  • You ownAt the end of the term
  • Cash flowCompare savings and repayments

A funder pays for the system and you repay monthly over a fixed term. Your proposal compares expected energy savings with repayments, fees and any deposit.

Best for: Businesses that want ownership without tying up working capital

Ask about this route
No capital outlay

Power purchase agreement

Fully funded. You just buy cheaper electricity

  • Upfront£0
  • TermUp to 25 years
  • MaintenanceCovered by the agreement
  • You payAn agreed rate per kWh

Our funding partner INICIO pays for and owns the system, Solar4Business installs it, and insurance and maintenance are covered under the agreement. You buy the electricity generated at the agreed rate. The term, rate changes, maintenance and end-of-term arrangements are set out in the contract.

Best for: Sites with a large roof and daytime demand that want savings with no capital or maintenance

Ask about this route

Finance and fully funded options are subject to eligibility, survey and contract terms. Savings, repayments and tax relief depend on your circumstances.

Comparing the four routes

Commercial solar finance routes compared
Switch and saveBuy outrightHire purchasePPA
Upfront costNothingFull system costNil or small deposit£0
Who owns the systemNo system installedYou, from day oneYou, at the end of termINICIO, for the contract term
Maintenancen/aYour responsibilityYour responsibilityCovered by the agreement
Tax reliefn/aAIA, if eligibleAIA, if eligibleNot applicable, no asset owned
Best forAny business on an uncompetitive tariffProfitable businesses with cash or a facilityBusinesses wanting ownership without tying up capitalSites wanting savings with no capital or maintenance

Your own proposal compares these routes against your actual roof, tariff and half-hourly usage. Finance and PPA options are subject to eligibility, survey and contract terms.

The Annual Investment Allowance and first-year allowances

If you buy your system outright or through hire purchase, solar PV qualifies as special-rate plant for capital allowances. The Annual Investment Allowance lets you deduct up to £1m of qualifying spend, including solar, against your taxable profits in the year you invest.

At the 25% main rate of corporation tax, using your Annual Investment Allowance on a solar system reduces your effective cost by up to a quarter, provided you have not exhausted the £1m annual cap elsewhere in your business.

Above the Annual Investment Allowance, further special-rate spending, including solar, qualifies for a 50% first-year allowance, with the remaining balance written down at 6% a year after that. Solar does not qualify for the 100% full expensing rate, which is reserved for main-pool plant.

Illustration: £166,600 system, full AIA eligibility

25%

Main rate of corporation tax

£41,650

Tax saving at the main rate

£124,950

Effective cost after AIA relief

A worked payback example

Illustrative only: £166,600 installation cost and £30,873 in year-one energy savings, with full Annual Investment Allowance eligibility and sufficient profits taxed at the 25% main rate.

Solar example
Illustrative solar costs and simple payback
System cost£166,600
Year 1 energy savings£30,873
Payback time5.4 years
Effective cost after AIA relief at a 25% tax rate£124,950
Payback time when using the Annual Investment Allowance4.0 years
FAQs

Finance options FAQs

Which finance route is right for my business?

It depends on your cash position, your lease and how much power you use in daylight. Your free assessment models all four routes against your own bills and tariff, so you can compare the numbers before choosing.

Is a solar PPA really free?

A power purchase agreement is fully funded, with £0 upfront and no capital outlay. It is not free electricity: you pay INICIO an agreed rate per kWh for the power the system generates, which is set below your current grid rate.

How does the Annual Investment Allowance work for solar?

The Annual Investment Allowance lets you deduct up to £1m of qualifying capital spend, including solar PV, against your taxable profits in the year you invest. At the 25% main rate of corporation tax, that reduces your effective cost by up to a quarter, provided you have not used your £1m cap elsewhere.

What if my spending is above the £1m Annual Investment Allowance?

Solar PV is special-rate plant. Once your Annual Investment Allowance is used, further special-rate spending qualifies for a 50% first-year allowance, with the remaining balance written down at 6% a year. Solar does not qualify for the 100% full expensing rate, which applies to main-pool plant only.

Can I get a solar loan or asset finance?

Yes. Hire purchase spreads the cost over a fixed term, typically 5 to 10 years, with a funder paying for the system and you repaying monthly. You own the system at the end of the agreement, and your proposal compares the repayments with your expected savings.

Do I need to switch my energy supplier before going solar?

Not necessarily, but if you are on an out-of-contract or uncompetitive tariff, we review your current rates alongside your solar assessment so you are not overpaying while the system is designed.

What happens to the finance if I move premises?

This depends on your route and your lease. A PPA or hire purchase agreement is tied to the contract terms agreed at the outset; ask your assessor about portability before you commit if a move is likely.

Which route cuts your energy bill most?

A free assessment of your bills and roof, modelled against all four ways to pay. No obligation.

Get your free solar assessment