If you’re a business looking into solar, you’ll quickly face a key decision:
Do we buy the system, lease it, or use a Power Purchase Agreement (PPA)?
Each option fits a different financial strategy. Here’s a simple, Philippines-specific breakdown to help you choose.
Option A: Outright Purchase (CapEx Solar)
How it works
You buy the entire system upfront. You own the panels, inverters, and savings from day one.
Best for:
- Companies with available capital
- Businesses aiming for maximum long-term savings
- Sites planning to stay in the same location 10–20 years
Pros
✅ Highest lifetime savings
✅ Fastest ROI
✅ Full control of system and upgrades
✅ Eligible for net metering (if applicable)
Cons
❌ Requires large upfront budget
❌ Maintenance and monitoring are your responsibility (or via service contract)
Option B: Solar Lease
How it works
A provider installs solar on your site, and you pay a fixed monthly lease fee to use it.
Best for:
- Businesses that want solar without large upfront cost
- Sites with stable usage, but less desire to manage equipment
Pros
✅ Low or zero upfront investment
✅ Predictable monthly cost
✅ Provider often handles maintenance
Cons
❌ Savings lower than outright purchase
❌ Lease terms vary widely—watch for escalation clauses
❌ Ownership stays with provider unless buyout is included
Option C: Solar PPA (Power Purchase Agreement)
How it works
A provider installs and owns the solar system on your roof.
You buy the solar electricity it generates at a lower, pre-agreed rate.
Think of it as: solar power at a discount, without paying for the system.
Best for:
- High-consumption businesses
- Companies prioritizing zero-capex solutions
- Firms wanting savings immediately
Pros
✅ Zero or minimal upfront cost
✅ Immediate bill savings
✅ No maintenance burden on your team
✅ Rates are usually lower than your utility
✅ Great for ESG goals
Cons
❌ Contract commitment (usually 10–15 years)
❌ You must understand terms like rate escalators, performance guarantees, and end-of-term options
❌ Not ideal if your roof lease/location is uncertain
Quick comparison table (simple)
- Outright: highest savings, highest upfront cost
- Lease: moderate savings, low upfront cost
- PPA: strong savings, near-zero upfront cost
How to choose the right one for your business
Ask yourself:
1) Do we want to preserve cash?
If yes → PPA or Lease
If no → Outright
2) Is our roof large and usage mostly daytime?
If yes → PPA is excellent
This is the best profile for discounted solar energy.
3) Are we staying in this location long-term?
If yes → any option works
If no → avoid long contracts unless transfer clauses are clear
4) Do we want maximum savings over 15–25 years?
If yes → Outright purchase wins
The most common PH business path today
In the Philippines, many C&I buyers go:
PPA first → then buyout later
This gets them instant savings now, with an option to own later when it makes sense financially.
Final takeaway
There’s no single “best” option—only the best fit for your cash flow, roof, and risk tolerance.
Ready to Compare Your Solar Options?
If you want a clear side-by-side computation for solar PPA vs solar lease vs outright solar purchase, send us your latest electric bills. We’ll estimate your savings, payback, and best-fit financing option for your site.
📞 Call us at: +63 917 149 7789
📧 Email us at: [email protected]
🏢 Visit us at: 176 Capistrano – Echem St., Cagayan de Oro City