What is Solar Lease / PPA?
Financing options where a company installs solar panels on your roof and you pay a monthly fee or reduced electricity rate.
Quick Answer
Solar leases and PPAs are available in the UK for residential customers, with several companies offering them. Most UK homeowners purchase their systems outright or use personal loans. Zero VAT makes outright purchase attractive, and green loans from UK banks offer competitive rates of 3–6% for solar installations.
Fact-checked by John Rooney, Solar Energy Editor. Editorial policy
Solar Lease / PPA Explained
A solar lease or Power Purchase Agreement (PPA) is a financing arrangement where a third party owns and installs solar panels on your property. Under a lease, you pay a fixed monthly fee. Under a PPA, you buy the electricity at a discounted rate. In both cases, the company handles installation, maintenance, and monitoring. At the end of the contract (typically 15–25 years), you may be able to buy the system at a reduced price.
How Does Solar Lease / PPA Work in the UK?
Solar leases and PPAs are available in the UK for residential customers, with several companies offering them. Most UK homeowners purchase their systems outright or use personal loans. Zero VAT makes outright purchase attractive, and green loans from UK banks offer competitive rates of 3–6% for solar installations.
Frequently Asked Questions
Should I lease or buy solar panels in the UK?
Buying is usually better in the UK because you benefit from zero VAT, own the system outright, and keep all SEG export payments. Leasing gives up long-term savings for no upfront cost.
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John Rooney is the founder of Solar Info and has been covering the UK solar energy market since 2023. He fact-checks all content against official MCS and Ofgem data and maintains relationships with MCS-certified installers across the UK.