Investment Strategy Spring 2026

Choosing the right ownership and financing strategy for on-site solar for your business

Jon Kirby explains how major energy users can unlock the potential of on-site solar by structuring investment, ownership and risk to maximise long-term value.

For major energy users, electricity is no longer simply an operating cost. It is a strategic input that affects financial resilience, operational continuity and long-term decarbonisation delivery.

Volatile wholesale prices, constrained grid capacity and binding carbon targets are changing how organisations approach energy infrastructure. On-site solar is increasingly part of that response, not only to reduce emissions but to improve cost certainty and strengthen supply resilience.

The physical opportunity across the UK’s commercial and industrial estate is substantial. The technology is established and widely deployed.

The critical question is structural: how to implement solar in a way that aligns with capital strategy, operational priorities and long-term risk management.

Working with specialist delivery partners, SSE Energy Solutions supports organisations in evaluating three principal routes to on-site solar, each allocating capital, control, and responsibility differently.

Three strategic routes to on-site solar

1. Zero CapEx solar via a Power Purchase Agreement

A Power Purchase Agreement (PPA) separates electricity consumption from asset ownership. A third-party funds, installs, and operates the solar system. The organisation purchases the electricity generated, typically at a predictable contracted price.

Through partnerships such as SSE Energy Solutions and Ortus Energy, this enables fully funded solar deployment with integrated development, financing and long-term operation. For the host organisation, this typically provides: no upfront capital investment; predictable electricity pricing; operational and performance risk managed by the system owner; and immediate access to on-site renewable generation.

This structure is already supporting organisations with energy-intensive operations and strong daytime demand profiles. For example, a 300kWp rooftop system developed jointly by SSE Energy Solutions and Ortus Energy for 2Agriculture in Edinburgh generates around 252,400kWh of electricity each year, reducing both emissions and energy costs without requiring capital investment by the company.

With the PPA approach, the trade-off is long-term contractual commitment and no direct asset ownership. However, for many organisations, the combination of capital preservation, predictable pricing and scalable deployment makes PPAs a practical route to rapid decarbonisation.

2. Capital Expenditure (CapEx) — Own the asset outright

Direct capital investment delivers full ownership and control. Electricity savings accrue directly to the organisation, and the system becomes long-term infrastructure capable of generating value over decades. For organisations with available capital and long investment horizons, ownership can deliver strong lifecycle returns.

However, ownership also means full responsibility for performance, maintenance and lifecycle management. This route suits organisations that view energy generation as infrastructure they want to own and manage directly.

3. Asset finance: Spread cost while working toward ownership

Asset finance spreads the cost of solar while working toward ownership. A finance provider funds the system, with repayments made over an agreed period. Operational responsibility typically remains with the organisation.

This reduces upfront capital requirements but retains exposure to performance and maintenance risk. Asset finance suits organisations that want long-term ownership but prefer to preserve capital in the near term.

Ownership determines responsibility

Across all models, ownership defines where control, and risk, ultimately sits. Owning the system delivers autonomy and long-term asset value, but also full operational accountability. Financing ownership spreads capital cost but retains performance exposure. Third-party ownership transfers operational responsibility while reducing direct control.

Exploring the right structure for your organisation

On site solar cannot be treated in isolation. It must align with procurement strategy, site operations, financing models and long term decarbonisation plans. The challenge is no longer just installing generation, but structuring energy assets to support financial performance, operational resilience and future business needs.

Partners like SSE Energy Solutions can help evaluate key metrics, including the total cost of ownership, Net Present Value/Internal Rate of Return (NPV/IRR), hedging value and carbon reduction pathways, while supporting contract design, landlord consents, assignment rights and other long term considerations.

We support major energy users at this system level, combining energy supply expertise, infrastructure delivery and long-term asset insight. Working with specialist partners such as Ortus Energy, we help deliver projects across all ownership models while guiding organisations towards structures that best match their commercial and operational priorities.

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