SaaS Model
Solar as a Service for UK Businesses
Solar as a Service treats commercial solar like a utility — flat monthly subscription, zero capital, no operational responsibility. Useful for businesses prioritising simplicity over maximum lifetime ROI.
£0
Capital required
Flat
Monthly fee
All-in
Service + insurance
10–25 yr
Term
Solar as a Service (SaaS) is the simplest UK commercial solar finance route — a flat monthly subscription that covers the system plus all associated services (maintenance, monitoring, insurance, replacement). For businesses prioritising operational simplicity and predictable opex over maximum 25-year ROI, SaaS is increasingly the default choice.
How Solar as a Service Works
- Provider funds, owns, installs, and operates the solar system on your roof.
- You sign a 10–25 year contract for a flat monthly subscription.
- Subscription covers: equipment, install, maintenance, monitoring, repair, insurance, replacement.
- You consume the generated electricity at a discount to grid (or as part of the bundled subscription).
- At end of term: extend, replace, or buy out (typically £1).
SaaS vs PPA — What's Different
- PPA: you pay only for the kWh generated (variable cost depending on weather, load).
- SaaS: you pay a flat monthly fee regardless of generation. Provides budgeting predictability.
- PPA: generator profit varies with generation; longer-term solar yield risk on the provider.
- SaaS: bundled service model; provider absorbs all O&M, monitoring, and replacement risk.
Typical UK SaaS Pricing
For a 100kW commercial solar SaaS subscription:
- Monthly fee: ~£1,000–£1,400/month
- Annual fee: ~£12,000–£17,000/year
- vs grid bill displaced: ~£28,000/year
- Net annual saving: ~£11,000–£16,000/year
- Term: typically 15 years
- Buyout option: usually £1 at term end (with optional purchase at year 5/10 at depreciated value)
When to Choose SaaS Over Capital / Asset Finance / PPA
- Choose SaaS if: You want zero capital outlay, predictable monthly cost, and zero operational responsibility. You value simplicity over maximum 25-year saving.
- Choose Capital Purchase if: You have cash and want maximum lifetime ROI.
- Choose Asset Finance if: You want eventual ownership at the end of a defined finance term.
- Choose PPA if: You want the lowest-cost-per-kWh and don't need cost predictability.
SaaS Provider Landscape (UK 2026)
- Major utility-backed SaaS providers (E.ON, EDF Energy, Centrica)
- Independent renewable SaaS specialists (Mypower, Solivus, Custom Solar)
- Asset-finance providers offering SaaS-like wraps (Investec, Macquarie, Greencoat)
Key Contract Terms to Negotiate
- RPI vs CPI vs flat indexation — affects long-term cost trajectory
- Performance guarantee — provider commits to a minimum kWh/year against PVSyst forecast
- Buyout windows — when can you buy the system out (typically year 5, 10, end of term)
- Termination clauses — what if your business changes premises or sells the property?
- Roof rights — does the provider have access to your roof for maintenance?
Frequently Asked Questions
What is Solar as a Service?
A subscription model for commercial solar — flat monthly fee covers the system plus all associated services (install, maintenance, monitoring, insurance, replacement). Zero capital outlay; provider owns and operates.
How is SaaS different from PPA?
PPA charges per kWh generated (variable). SaaS is a flat monthly fee (predictable). Both require zero capital. PPA tends to deliver higher long-term saving; SaaS delivers more predictable monthly cost.
How much does Solar as a Service cost?
For a 100kW system: ~£1,000–£1,400/month subscription. Net saving vs grid: ~£11,000–£16,000/year. Term typically 15 years. £1 buyout at term end.
Who owns the system in Solar as a Service?
The provider owns the system throughout the contract term. At end of term, you have an option to buy out (typically £1), extend the subscription, or have the system removed.
Is Solar as a Service good for charities and public sector?
Often yes — public-sector and charity procurement structures often prefer opex over capex. SaaS converts solar into a predictable monthly utility expense, fitting standard public-sector budget structures.
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