Commercial Solar Purchase, Finance & PPA Calculator

Compare purchasing, 3-, 5- and 7-year finance, and fixed-price 25-year solar PPAs for UK factories.

Choose your solar system size

Calculation assumptions

  • Guide purchase price: £800 per kW, excluding VAT
  • Finance interest: 8% nominal annually
  • Annual generation: 950 kWh per kW installed (indicative; subject to site-specific solar yield assessment)
  • Solar electricity consumed on site: 80%
  • Initial grid electricity price: 25p/kWh
  • Annual grid electricity price increase: 6.8%, compounded
  • Illustrative average export revenue for purchase/finance: 10p/kWh (not guaranteed)
  • Fixed 25-year PPA rate depends on system size (see PPA section)

Purchase and finance

Guide purchase price, ex VAT£80,000
3-year monthly finance£2,507/month
5-year monthly finance£1,622/month
7-year monthly finance£1,247/month

Illustrative equal monthly repayments. Finance costs exclude fees, deposits, VAT and other lender terms.

Cash-positive solar finance

Compare the estimated first-year average monthly electricity savings and export income against each finance repayment.

Average monthly solar benefit£1,742/month
3-year finance: average first-year monthly cash flow−£765/month — Cash-negative
5-year finance: average first-year monthly cash flow+£120/month — Cash-positive
7-year finance: average first-year monthly cash flow+£495/month — Cash-positive

Cash-positive means estimated first-year average monthly solar benefit exceeds the monthly finance repayment, before maintenance, insurance, finance fees and other costs. Solar production varies seasonally, so positive average monthly cash flow does not guarantee savings exceed repayments in every calendar month. Illustrative, not a financing offer.

Annual generation and 25-year outlook

Annual solar generation95,000 kWh
First-year purchase electricity benefit£20,900/year
Projected payback (6.8% grid inflation)3.5 years
Year-25 projected grid rate121.24p/kWh
25-year outright purchase net benefit£1,135,280
25-year 5-year finance net benefit£1,117,953

Fixed-rate 25-year Power Purchase Agreement (PPA)

Pay for electricity consumed on site at the indicative fixed PPA rate rather than buying the solar installation. Subject to site suitability and contract.

Fixed PPA price19p/kWh
First-year PPA payment£14,440/year
First-year saving versus grid£4,560/year
25-year PPA payments£361,000
25-year saving versus grid£806,780

PPA rates: 100–199 kW 19p; 200–299 kW 17p; 300–499 kW 15p; 500–999 kW 13p; 1,000 kW+ 11p per kWh. PPA pricing starts at 100 kW. No export income is attributed to the customer under the PPA model.

Year-by-year comparison

Year Grid price Outright purchase 3-year finance 5-year finance 7-year finance 25-year PPA
1 25.00p -£59,100 -£9,183 £1,435 £5,937 £4,560
2 26.70p £22,192 -£7,891 £2,727 £7,229 £5,852
3 28.52p £23,572 -£6,511 £4,107 £8,609 £7,232
4 30.45p £25,046 £25,046 £5,580 £10,083 £8,706
5 32.53p £26,619 £26,619 £7,154 £11,657 £10,279
6 34.74p £28,300 £28,300 £28,300 £13,338 £11,960
7 37.10p £30,096 £30,096 £30,096 £15,133 £13,756
8 39.62p £32,013 £32,013 £32,013 £32,013 £15,673
9 42.32p £34,061 £34,061 £34,061 £34,061 £17,721
10 45.19p £36,247 £36,247 £36,247 £36,247 £19,907
11 48.27p £38,583 £38,583 £38,583 £38,583 £22,243
12 51.55p £41,078 £41,078 £41,078 £41,078 £24,738
13 55.05p £43,742 £43,742 £43,742 £43,742 £27,402
14 58.80p £46,587 £46,587 £46,587 £46,587 £30,247
15 62.80p £49,626 £49,626 £49,626 £49,626 £33,286
16 67.07p £52,871 £52,871 £52,871 £52,871 £36,531
17 71.63p £56,337 £56,337 £56,337 £56,337 £39,997
18 76.50p £60,039 £60,039 £60,039 £60,039 £43,699
19 81.70p £63,992 £63,992 £63,992 £63,992 £47,652
20 87.26p £68,214 £68,214 £68,214 £68,214 £51,874
21 93.19p £72,724 £72,724 £72,724 £72,724 £56,384
22 99.53p £77,540 £77,540 £77,540 £77,540 £61,200
23 106.29p £82,683 £82,683 £82,683 £82,683 £66,343
24 113.52p £88,176 £88,176 £88,176 £88,176 £71,836
25 121.24p £94,043 £94,043 £94,043 £94,043 £77,703

Figures show annual net cash benefit (or cost). Purchase price is deducted in year 1; finance repayments are deducted during the selected term. Figures are undiscounted.

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All figures are illustrative, not a quotation or guarantee. Grid electricity starts at 25p/kWh and grows at a user-adjustable 6.8% annually as a scenario, not a verified forecast. The 8% finance assumption is nominal annual interest, not a representative APR. Calculations assume constant annual solar output, consumption, export price and PPA price, and exclude degradation, maintenance, curtailment, insurance, replacement equipment, tax, VAT, financing fees and time value of money. Real PPA terms, export rights, minimum commitments and end-of-term obligations must be agreed in writing.