Frequently asked questions
Commercial solar finance, answered straight.
The questions we hear most often from finance directors, estates managers, MAT business managers, and property portfolio leads.
Section 01
Finance structures
How the six commercial solar finance routes differ in mechanics, cost, and after-tax economics.
What's the most economic finance structure for commercial solar?
For profitable, corporation-tax-paying companies with available capital, capital purchase delivers the lowest 25-year cost. Where capital isn't available, a green loan is the next-best route — total finance cost over 10 years is typically £60k–£90k on a £200k system, but the borrower retains all tax benefits. PPAs deliver immediate cash flow benefit but lower lifetime returns.
Should I use a green loan or operating lease?
Green loan if your company can use the 50% First Year Allowance — the borrower retains FYA, AIA where available, and ongoing capital allowances. Operating lease if your company can't use these reliefs (loss-making, charity, public-sector wholly grant-funded) — the lessor uses them and reflects part of the value in lower rent.
What's the catch with PPAs?
Lifetime saving is 30–50% lower than ownership routes. The PPA developer captures a return on their capital somewhere in the difference between what your solar generates and what you pay them. For a profitable trading company with capital available, capital purchase delivers materially more lifetime value. PPAs win where capital is unavailable, the building is tenanted, or the host doesn't want the asset.
Is solar finance regulated?
Most commercial solar finance falls outside FCA regulation because borrowers are limited companies rather than consumers. Some structures and lenders are FCA-regulated for other purposes; a few B2B finance products fall within scope. We are independent of any lender and source competing quotes across the market.
Section 02
Tax & capital allowances
FYA, AIA, PSDS, SEG, and how the reliefs interact.
How does the 50% First Year Allowance work?
If your company pays UK corporation tax and installs new commercial solar PV before 31 March 2026, you can deduct 50% of the qualifying capital cost from taxable profits in year one. On a £200,000 system, that's £100,000 deducted in year one — worth £25,000 of tax saved at the 25% main rate. The remaining 50% goes into the special-rate pool for ongoing 6% writing-down allowances.
Can I use AIA and FYA on the same project?
Yes — AIA gives 100% year-one relief on the first £1m of qualifying capital expenditure. FYA gives 50% relief on top of any unused AIA capacity. Most trading businesses already use AIA on other capex (vehicles, plant, IT), so FYA fills the gap on solar. Where AIA capacity is available, claiming AIA on solar gives 100% year-one relief — better than FYA's 50%.
What if my company is loss-making?
Capital allowances create or increase a tax loss that can be carried forward to offset future profits. The cash benefit is delayed until the company returns to profit. Loss-making companies should consider operating lease structures where the lessor (with tax appetite) uses the allowances on their behalf and reflects value in lower rent.
Does the FYA apply to public-sector solar?
No — capital allowances are a corporation tax relief. Public-sector bodies (schools, NHS trusts, local authorities) are not subject to corporation tax and therefore can't use FYA or AIA. Public-sector solar economics rest on capital cost, energy savings, and PSDS grant funding.
When does PSDS grant funding cover the full cost?
PSDS Phase 3 has funded 75%–100% of qualifying spend on bundled decarbonisation projects (solar + heat pump + fabric efficiency). Solar-only applications rarely score well — PSDS prioritises projects with the lowest cost-per-tonne-of-CO2-saved. Successful school and NHS applications typically combine solar with heat decarbonisation.
Section 03
Process & timeline
What happens between first enquiry and a financed, commissioned project.
How long from enquiry to indicative model?
Five working days. We need: postcode, annual electricity consumption (or a recent bill), building tenure (own/lease), accounting year-end, and a sense of the corporation tax position. Within 5 days we return an indicative system size, all six finance structures modelled, and a recommended next step.
How long from indicative to financed project?
Typical timeline: 2–4 weeks for site survey, structural assessment, and fixed-price proposal; 8–14 weeks for DNO G99 approval (parallel); 4–8 weeks for finance underwriting (parallel); 1–4 weeks for procurement; 2–6 weeks on-site install; 1–2 weeks commissioning. Total elapsed time typically 4–7 months. PSDS-funded projects add 8–16 weeks for application and award process.
Do you arrange the install or just the finance?
We do both, but we keep them separate. Our advisory work — finance structure modelling, tax position analysis, lender selection, contract review — is independent of any installer relationship. We have a panel of pre-qualified installers who we recommend on a project-by-project basis based on technical fit, regional coverage, and pricing. The financial advice is independent of the install.
Do you take commissions from manufacturers or lenders?
No — we charge our clients directly for advisory work. Manufacturer and lender commissions create conflicts of interest that are difficult to disclose cleanly. By taking no commissions, our recommendations sit on the same side of the table as our clients.
Section 04
Applications & eligibility
What we ask, who we work with, and how to engage.
Do you only work with large companies?
No — we work with projects from £75k upward, which typically means commercial systems above 50–80kWp. Below that scale, mainstream asset finance via SME brokers usually delivers comparable economics with less advisory overhead.
Do you work with public sector?
Yes — a meaningful share of our work is multi-academy trusts, NHS trusts, councils, and other public-sector bodies. PSDS application support, portfolio strategy across estates, and procurement framework selection are all areas we cover. Public-sector engagement typically benefits from longer pre-positioning work because of governance timelines.
Do you work outside the UK?
No — we are UK-only. UK tax allowances, UK regional funding schemes, UK accounting standards, and UK DNO regulations are all jurisdiction-specific, and our value comes from depth in those rules. International commercial solar finance has different mechanics that we don't profess expertise in.
What information do you need to start?
Bare minimum to give a useful first response: postcode, annual electricity consumption in kWh, and roof type. To produce a fully-modelled finance comparison: also need accounting year-end, tax position (profit or loss), and details of any existing capex commitments competing for AIA. We'll ask for half-hourly demand data later for sizing optimisation, but it isn't needed for the indicative response.
Question not covered?
Send specifics via the contact form — we'll respond within one working day, and add it here if it's a question others would benefit from.
Ask a questionGet your written finance comparison
Tell us about your project and we'll reply within 1 working day with a written comparison: the two or three funding routes that fit your situation, indicative monthly costs for each, and the capital allowances you'd keep.
What we won't do: no marketing lists, no unsolicited calls, and we never pass your details to installers or lenders without your permission. We're an independent editorial advisory — not an installer, not a broker taking commissions.