Commercial Solar February 12, 2026

Solar Lease vs PPA vs Purchase: What's Best for Your Business?

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

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