Private Finance vs PPAs: Choosing the Right Solar Solution

Choosing the Right Solar Solution
Private Finance
vs PPAs

Own your system or lock-in a fixed rate? Compare financing options: private finance vs PPAs (power purchase agreements) for predictable business energy.

Firstly, if you do not understand what a PPA is, it is worth reading our knowledge share article ‘What Is A Solar PPA?

While our PPA offers a convenient and zero-upfront-cost solution for transitioning to solar, we understand some clients prefer alternative financing options. Here’s a breakdown of the key differences:

Comparing Private Finance and PPAs: Understanding Differences When Funding A Solar Power Project

Feature Private Finance PPA
Upfront Cost
Paid in full by you. Either using an external funding source or your own cash. A percentage of the funds will be needed upfront and a percentage will be paid upon completing the install.
None.
Ownership
The solar pv system is owned by you from the start.
The solar pv system is owned by our PPA funding partner. However, upon the PPA term maturing (typically 10-20 years), the system is handed over to you.
Maintenance
Responsibility for maintenance lies with you/the owner of the system.
Lifetime system maintenance is included giving peace of mind.
Financial Flexibility
Requires significant upfront capital.
Fixed monthly payments; guaranteed minimum saving of at least 20% compared to the average grid rate provided by Ofgem.
Control
Full control over system operation and energy usage.
Limited control over system operation but you’ll have full transparency.
Suitability
Ideal for businesses with available capital and desiring full system control looking to benefit from solar power.
Ideal for businesses seeking a zero-upfront cost solution and lower energy bills whilst receiving full maintenance and servicing in the PPA.

Additional Considerations

There are many additional considerations that need to be evaluated before choosing the right financing option for a solar project but here we will consider the expected lifespan of your building and it’s roof.

Assessing the duration of your occupancy can help determine the suitability of a PPA arrangement as a PPA is a 10-20 year agreement. Also, your current roof’s health is vitally important before embarking on installing solar. As a roof that is likely to fail in the near future should obviously be repaired/replaced beforehand.

Ensure To Consult With A Solar Professional

Investing in solar power represents a significant decision for any business. Consulting with a qualified solar installer can provide valuable insights tailored to your specific needs, including an analysis of your roof’s solar potential and personalised recommendations for private finance vs PPAs.

By understanding the distinctions between private financing and PPAs, businesses can navigate the complexities of solar financing with confidence, driving sustainable energy adoption and long-term financial benefits.

DVC Group Limited, Your Trusted Solar Partner

At DVC Group Limited, we comprehend the unique needs of businesses. We offer a range of PPA options tailored to your specific energy consumption, budget, and sustainability goals. With our expertise and unwavering commitment to customer satisfaction, we can help you unlock the power of solar energy, enabling significant cost savings while showcasing your dedication to a sustainable future.

Ready to learn more? Contact DVC Group Limited today for a complimentary consultation and discover how a commercial solar PPA can empower your business to transition to clean, sustainable energy.

Elevate your brand image, save significantly, and contribute to a greener planet – embark on your solar journey with DVC Group Limited!

Ready to Illuminate Your Future?

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Note: DVC Group is committed to providing tailored solar solutions to meet the unique needs of each customer. We are proud to contribute to a greener, cost-effective, and sustainable future. Let’s power your world with the sun!

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