Comparison

On-site PPA vs Sleeved PPA

Both call themselves PPA but very different — on-site builds on your roof, sleeved gets power from a generator elsewhere via a supplier. Trade-offs.

Last reviewed 13 May 2026 6 min read By Compare

Side-by-side comparison

On-site PPASleeved PPA
Generation locationYour roof / landElsewhere (solar farm, third-party rooftop)
Delivery mechanismDirect via your kitVia electricity supplier 'sleeving'
Supplier roleNoneCritical — supplier must agree to sleeve
Tariff (year 1)9-18 p/kWh11-20 p/kWh (excludes supplier markup)
Best forSingle-site businesses with roofTenants, multi-site, no roof rights
Site survey neededYesNo (generator pre-built)
Build time6-16 weeks0 — already built

Our verdict

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.

When On-site PPA wins

On-site PPA typically wins when (a) you need zero upfront capital, (b) you want operations and performance risk transferred, (c) your business horizon doesn't extend to a 25-year capital commitment, or (d) you want speed to deploy.

When Sleeved PPA wins

Sleeved PPA typically wins when (a) you have capital and want the lowest 25-year cost, (b) you want to retain ownership of the asset and its long-term value, (c) you can manage operations in-house, or (d) you're constrained by structural reasons (e.g., procurement rules for public bodies).

Donovan Fawcett · Director, SEO Dons Ltd Twelve years in UK commercial solar SEO and PPA advisory. Editorial policy & independence.
FAQs

Comparison FAQs

Which option should I pick?

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. Run your specific numbers in our PPA calculator before deciding.

Can the two be combined?

Sometimes. SEG income always layers on top of either route. AIA / Full Expensing combine only with cash or self-finance. PPA + grant rarely stack — most grants exclude PPA structures.

Where can I read more about the underlying mechanics?

Our mechanics hub covers 10 deep-dives on PPA structure, pricing, escalators, term, end-of-contract, off-taker covenant, EPC, O&M and M&V.

Want to model your specific site?

Our calculator runs both scenarios with your actual kWh, tariff and site assumptions.

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