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PPA vs the alternatives — eight head-to-head comparisons

A PPA isn't always the right answer. We compare PPA against every realistic UK alternative — cash purchase, operating lease, grant-funded ownership, roof rental, on-site vs sleeved, escalator types, self-finance and corporate-vs-utility structures.

Last reviewed 13 May 2026 4 min read By Donovan Fawcett

PPA vs Cash Purchase

PPA wins on cashflow and admin burden; cash wins on long-run cost if you have the capital and a 20-year occupancy horizon.…

PPA vs Operating Lease

PPA shifts performance risk to the provider; operating lease keeps you in control of the asset but exposes you to under-performance.…

PPA vs Grant-funded Solar

Grants tie you to direct ownership and a heavier compliance burden but cut LCOE the most. PPA gets you started immediately with no capital.…

PPA vs Roof Rental

Roof rental gives you ~£5-15k/MWp/year in cash but no power. PPA gives you 30-50% cheaper electricity. Pick based on whether you use the kWh…

On-site PPA vs Sleeved PPA

On-site is cheaper per kWh and lower risk but limited to a single site. Sleeved suits multi-site businesses and tenants without roof rights.…

Fixed vs RPI/CPI-linked PPA Escalator

Fixed gives you certainty; inflation-linked feels safer if you believe grid power will keep rising at RPI+. Run both scenarios before signin…

PPA vs Self-financed Solar (Asset Finance)

Asset finance gives you the system for £0 down then ownership; PPA gives you cheaper kWh but no asset. Pick based on whether you want the lo…

Corporate PPA vs Utility PPA

CPPA gives you the cheapest tariff for investment-grade off-takers; utility PPA suits anyone who needs the supplier's balancing and credit s…

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