Alectrona
Commercial solar finance · over 50 kWp · outside MCSCommercial solar is a capital asset that pays you back every year for a quarter of a century. So the funding question is not "can we afford it", it is "which route keeps the most of the return in your business". Buying it outright keeps nearly all of it.
Here are the nine funding and tax routes we work with, capex first because it pays best, with leasing and a power purchase agreement for the businesses that need the cash flow instead.
These are representative example reviews, not yet-collected customer feedback. They are written to illustrate the kind of feedback Alectrona aims to earn and are shown as design placeholders while we gather and verify reviews from our first commercial clients. Alectrona is the commercial solar trading brand of RVTC LTD.
What set Alectrona apart was the documented design pack. We had quotes from three installers, but only Alectrona handed us a full set of drawings, a single-line diagram and a design referencing BS 7671 and the G99 connection process. The whole thing read like an engineering submission rather than a sales brochure. Our M&E consultant reviewed it and signed it off without a single query. That gave the board the confidence to release the capital.
Other firms priced our roof off a satellite image and a desktop guess. Alectrona flew an in-house drone survey, fully insured and flown by a qualified commercial drone pilot, and built a 3D model of the actual roof. It picked up plant, vents and a parapet line that a flat aerial photo had completely missed, which changed the panel layout. I would rather find that out at design stage than on the day the scaffold goes up. The accuracy of that survey is the reason I trusted everything that followed.
As a finance director I was wary of being oversold a system bigger than we could use. Alectrona modelled the array against our actual half-hourly consumption data rather than an annual total, so it is sized to what we genuinely draw on site during the day. They were honest that exporting surplus is worth far less than self-consumption, and built the design around that. The capital case stacked up because the engineering was honest, not because the numbers were inflated.
We were undecided between buying outright, leasing and a PPA. Alectrona laid out all three side by side with the pros and cons of each against our balance sheet, instead of pushing the one that pays them best. They were clear about where a PPA makes sense and where capex wins, and pointed us at our own accountant for the tax treatment. The survey and design took a little longer than I expected, but the thoroughness was worth the wait. Genuinely consultative.
The install crew were tidy and well run, and worked to a clear CDM 2015 plan with a proper site induction and RAMS. What impressed me most was the handover. We received a full commissioning pack with the IEC 62446-1 test results, certification, O&M documentation and an as-built record for our maintenance team. As the people who have to live with this asset for the next twenty years, having that paperwork in order matters enormously. Nothing was left loose.
I expected the usual hard sell and got the opposite. After surveying our site Alectrona told us one roof section was not worth covering because of shading, and that a smaller, well-sited array was the better investment than filling every square metre. There was no commission-driven upselling and no pressure. For a six-figure capital project, that straight talk is exactly what you want from the people advising you. We will be using them again on our second site.
Three of these are genuine ways to fund the system, capex, leasing and a power purchase agreement. The rest are the tax, rates and export topics that decide how much of the return you actually keep. We will tell you straight which combination fits your balance sheet.
On balance sheet (you own the asset)
Businesses with the capital to invest. The best return: you own a 25-year asset from day one and keep every saving and every pound of tax relief.
Capex (buy outright) in detailHow the tax relief works on a bought system. Solar PV is a special-rate asset; the Annual Investment Allowance gives a 100% first-year deduction within the £1m annual limit. Full expensing does not apply to solar.
Indicative, not financial or tax advice. Confirm the position with a qualified accountant or tax adviser. Your figure comes from a survey-led PV*SOL model.
Capital allowances in detailOn or off balance sheet, by agreement
Spreading the cost so the system can be cash-flow neutral, while keeping the asset and the tax position. On or off balance sheet depends on the agreement.
Whether a PPA or lease sits on or off your balance sheet under IFRS 16 depends on the contract; ask your auditor.
Leasing / hire purchase in detailOn or off balance sheet, by agreement
Zero capital outlay: a funder owns the system and you buy the power it generates, usually below grid price. We say plainly that a PPA largely benefits the funder, so capex still gives the better return where it is an option.
Whether a PPA or lease sits on or off your balance sheet under IFRS 16 depends on the contract; ask your auditor.
Power purchase agreement (PPA) in detailAn honest account of what genuinely exists, such as PSDS/Salix, the IETF and UKSPF for eligible bodies. Most private commercial sites do not qualify, and we tell you straight whether yours does.
Grants in detailHow VAT applies to commercial solar and recovery for a VAT-registered business. The zero-rate for installations applies to residential, not commercial, so commercial buyers should confirm their own position.
VAT in detailThe business-rates treatment of rooftop solar used to power your own site, including the relief that has applied to self-supply microgeneration. We set out the current position for your property.
Business rates in detailWhat you earn for power you export rather than use on site. Export pays far less than the power you avoid buying, which is why we design for self-consumption first.
SEG & export in detailA side-by-side of buy versus lease versus PPA so you can decide on the facts. Capex gives the best return where the capital is available; the others trade some return for cash flow.
Compare funding routes in detail
However you fund it, the asset on the roof is the same.
These are indicative ranges for a well-matched commercial roof bought outright, framed at the conservative end. The capital-allowances relief is what shortens the payback. Your own figure comes from the survey and the PV*SOL model, never from a rule of thumb.
payback can be as little as ~3 years (including the year-one AIA saving); typically ~3.5–5 years, depending on consumption profile, tariff and roof
around 15–25% IRR over its life / ~25% annual return net of maintenance, after first-year capital allowances
up to ~60% on a well-matched site, more typically ~40–50%, depending on consumption profile and roof space
Representative example, not a quote. Figures assume a well-matched commercial site sized for self-consumption, a typical commercial import tariff, generation modelled in PV*SOL for the specific roof, and the year-one Annual Investment Allowance applied where the route is capex. Actual results depend on your consumption profile, roof space and tariff. Your own figures come from the on-site survey and model.
Indicative, not financial or tax advice. Confirm the position with a qualified accountant or tax adviser. Your figure comes from a survey-led PV*SOL model.
The maintenance plan is part of the financial case, not a footnote to it.
Tell us about your building and your electricity use. We will survey the roof, model it in PV*SOL, and come back with the numbers for capex, leasing and a PPA so you can choose on the facts.