Funded solar
No Upfront Cost Commercial Solar: How Funded Solar Really Works
Last updated 15 October 2026 · Figures indicative
Short answer: "No upfront cost" commercial solar means a funder pays for the panels, installation and maintenance, usually under a solar PPA. Your business pays nothing to install, but signs a long-term agreement to buy the electricity generated at a fixed p/kWh rate. It's funded, not free — the saving comes from that rate being lower than grid prices.
What "no upfront cost" covers
| Item | Typically paid by | Check |
|---|---|---|
| Design and desktop study | Provider | — |
| Site and structural survey | Provider | Asbestos survey may be yours |
| Panels, inverters, installation | Provider | — |
| DNO application | Provider | Reinforcement charges |
| Maintenance and monitoring | Provider | Response times |
| System insurance | Provider | Roof liability |
| Roof repairs before install | Often you | Who pays mid-term lifts |
| Removal at term end | Provider | Making good the roof |
Funded models compared
- Solar PPA: pay only per kWh used; provider owns and maintains. The most common route.
- Operating lease: fixed monthly rental for the equipment; you keep all the electricity, but pay whether it generates or not.
- Rent-a-roof: a developer leases your roof and may pay you rent or offer discounted power. Rare for smaller roofs.
- ESCO / energy-as-a-service: a provider funds solar plus other measures (LED, batteries, EV charging) for a single service fee.
For financed options where you own the system, see commercial solar financing.
Hidden costs to ask about
- Roof repairs or over-cladding needed before installation.
- Your own legal fees for reviewing a 15–25 year contract.
- DNO grid upgrade charges if the network needs reinforcing.
- Minimum-take clauses that charge for a set volume regardless of use.
- Early-termination or buy-out fees if you move or sell.
- Indexation that raises the rate faster than you expect.
Who funders approve
Funders typically look for around 500m² of suitable roof or land, roughly 80,000 kWh a year with strong daytime use, at least 15 years' tenure and stable trading accounts. Guide criteria used by funders; smaller sites may still qualify or suit a purchased system.
Funded vs self-funded: 20-year comparison
A 150kWp system, 950 kWh/kWp, 75% used on site at 26p/kWh rising 2%/yr. Funded at 12.5p/kWh fixed; self-funded at £950/kWp with O&M and an inverter replacement.
| Measure | Funded (PPA) | Self-funded |
|---|---|---|
| Capital needed | £0 | £142,500 |
| Year-1 net saving | £14,428 | £25,988 |
| 20-year net benefit | £387,048 | £453,417 |
| NPV at 8% | £177,078 | £139,599 |
PPA rate within the indicative 10–14p/kWh range; purchase cost within £850–£1,050/kWp. Export income and tax relief excluded.
Buying saves more over 20 years; funded solar saves from day one with no capital or performance risk. Full detail in solar PPA vs buying.
How to apply for funded solar
- Check eligibility online — get personalised guidance.
- Share 12 months of half-hourly data and recent bills.
- Receive a desktop design and indicative rate.
- Site survey, credit check and contract.
Learn the full process in how a solar PPA works or the solar PPA guide.
Related reading: our complete guide to solar power purchase agreements, other commercial solar funding options, funded vs self-funded over 20 years, checking a funder before you sign and whether funders would accept your site.
No upfront cost solar FAQs
Is no upfront cost solar a scam?
No — fully funded commercial solar is a legitimate, widely used model, usually delivered through a solar PPA. Be wary of anyone calling it "free": you sign a long-term agreement and pay for every kWh you use. Check the provider's funding, track record and contract terms before signing.
Are there any fees at all?
Usually the provider covers design, installation, maintenance and insurance, but check the contract for costs that can fall to you: roof repairs needed before installation, legal fees, DNO grid upgrade charges, minimum-purchase clauses, and early-termination or buy-out fees if you leave the building.
Will funded solar affect our credit?
The funder will run a credit check on your business, usually reviewing two to three years of accounts. A PPA is a supply contract rather than a loan, so it isn't normally reported as borrowing, but your accountant should check how it is treated in your accounts.
What if our roof needs repairs first?
The roof must last the length of the agreement, so a survey checks its condition before design. If repairs or over-cladding are needed, they are often your cost, though some providers fund them and reflect it in a slightly higher p/kWh rate.
Can small businesses get funded solar?
Funders usually look for around 500m² of roof and 80,000 kWh a year or more, so very small sites often don't qualify for a PPA. A smaller purchased system, a lease or asset finance may suit them better.
Sources
- GOV.UK — Greenhouse gas reporting: conversion factors (DESNZ)
- legislation.gov.uk — The Non-Domestic Rating (Plant and Machinery) (Amendment) (England) Regulations 2022, SI 2022/405
- HMRC — Capital allowances: Annual Investment Allowance and first-year allowances
- Energy Networks Association — G98 and G99 connection requirements
- European Commission JRC — PVGIS photovoltaic yield tool
Price ranges for larger systems, running costs, batteries and PPA rates are indicative market ranges from UK installer, funder and market sources; no official series exists above 50kWp.
See if your site qualifies for funded solar
No upfront installation cost — you pay for the electricity generated under a long-term agreement.
Get your eligibility guidance