PPA vs Roof Rental
Solar PPA vs renting your roof to a generator. Two very different deals — PPA buys cheap power, roof rental gives you a small annual fee.
Quick answer: Solar PPA or Roof rental / hosting?
Solar PPA vs Roof rental / hosting: 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.
Side-by-side comparison
| Solar PPA | Roof rental / hosting | |
|---|---|---|
| What you get | Cheap kWh (11-16 p) | Cash rent (£5-15k/MWp/year) |
| Power | Yes — for your business | No — exported to grid |
| Risk profile | PPA performance risk on provider | Tenant risk on rent payer |
| Term | 15-25 years | 20-25 years |
| Best for | Sites that use the kWh | Roof-rich, low-power-use sites |
| Both possible? | — | No — pick one |
Our verdict
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.
Two deals that only look similar
People lump these together because both involve a third party putting panels on your roof. The resemblance ends there. A roof rental (or hosting) deal pays you a fee — typically £5,000–£15,000 per MWp per year — and sends every unit generated to the grid; you see cash, not electricity. A PPA gives you the power at a discounted rate of around 11–16p/kWh and no rent. One is income; the other is a cheaper energy bill.
The deciding question: do you use the electricity?
Everything turns on your site's demand. A high-consumption factory, cold store or hotel gains far more from 30–50% cheaper power than from a modest annual rent, so a PPA wins comfortably. A low-occupancy warehouse, a distribution shed with little daytime load, or a landlord with big roofs and small meters is better off banking the rent — the kilowatt-hours would only be exported anyway.
Risk and commitment
The risk shape differs too. Under a PPA the provider carries generation and equipment performance risk; under a roof rental your main exposure is the covenant of whoever pays the rent. Both tie the roof up for a long time — 15–25 years for a PPA, 20–25 for a rental — and you genuinely can't run both on the same roof space. It's one or the other.
Making the call
Match the deal to your load profile: consume the power, take the PPA; export it anyway, take the rent. Weigh the options in the comparison hub and get to grips with how the discounted tariff is priced so you can judge the saving against the rent cheque, or size the numbers in the savings calculator.
Comparison FAQs
Which option should I pick?
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. 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. Capital allowances combine only with cash or self-finance — and note solar is a special-rate asset, so it does NOT qualify for full expensing; the correct 100% route is the Annual Investment Allowance (up to £1m/year). 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.
Open calculatorGet a p/kWh figure for your own building
PPA vs Roof Rental — tell us about your site and we'll return an indicative p/kWh tariff for it. Reply by email within one working day.