Comparison

PPA vs Self-financed Solar (Asset Finance)

Solar PPA vs asset-financed direct ownership. Asset finance lets you own the system over 5-10 years; PPA keeps it off your balance sheet for longer.

Side-by-side comparison

	Solar PPA	Asset finance / hire purchase
Capital required	£0	£0-20% deposit typical
Term	15-25 years	5-10 years
Ownership at end	Provider (or buy-out)	You
Annual cost	Per kWh (variable)	Fixed loan repayment
AIA / Full Expensing	No (PPA = operating expense)	Yes (100% in year 1)
Best for	Cashflow + admin simplicity	Off-takers wanting eventual asset ownership

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 Asset finance / hire purchase wins

Asset finance / hire purchase 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?

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 long-term residual value. 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.