Comparison

PPA vs Grant-funded Solar

Solar PPA vs IETF / PSDS / Salix grant-funded installation. Which routes are mutually exclusive vs stackable.

Side-by-side comparison

	Solar PPA	Grant-funded (PSDS, IETF, Salix)
Capital needed	£0	0-30% match required typically
Speed to deploy	6-12 months	12-24 months (application + procurement)
Eligibility	Most commercial	Restricted (PSDS public sector, IETF EII, Salix public)
Long-run cost (lifetime kWh)	11-16 p/kWh	5-9 p/kWh (after grant + tax)
Procurement burden	Provider-led	Off-taker-led, formal PCR / PA 2023
Stackable with PPA?	—	PSDS/IETF rarely stack; SEG always stacks
Best for	Speed + capital constraint	Public sector, EII, or balance-sheet ready

When Solar PPA wins

Solar 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 Grant-funded (PSDS, IETF, Salix) wins

Grant-funded (PSDS, IETF, Salix) 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).

FAQs

Comparison FAQs

Which option should I pick?

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