Solar Lease vs PPA vs Purchase: What's Best for Your Business?
Choose the right financing model for your business needs and financial goals.
Option 1: Cash Purchase
Best for: Businesses with capital available - Full ownership from day one - Maximum savings (₹30-40 lakhs over 25 years) - Tax benefits (depreciation) - No ongoing payments
Option 2: Solar Loan
Best for: Businesses wanting ownership with lower upfront cost - Competitive interest rates - Tax-deductible interest - Build equity in the system - Typical tenure: 5-10 years
Option 3: Power Purchase Agreement (PPA)
Best for: No capital expenditure option - Developer owns and maintains system - Pay only for electricity generated - No upfront cost - Typically 15-25 year agreements
Option 4: Solar Lease
Best for: Maximum flexibility - Fixed monthly lease payment - Maintenance included - Option to buy later - Shorter commitment periods
Radiant Energy helps you choose the best option!
Written by
Radiant Energy
Finance Team