Solar Leasing vs Buying: What Works Best for Businesses?

Irish businesses are increasingly turning to solar power to cut operating costs, protect against rising energy prices, and improve sustainability credentials. When considering a commercial solar installation, one of the first questions is whether to lease a system or buy it outright.

Both options exist in the market, but they deliver very different outcomes over time. This guide compares solar leasing and buying from a practical business perspective, with a focus on long term value, control, and return on investment for Irish companies.

What Is Solar Leasing?

Solar leasing allows a business to use a solar PV system without owning it. A third party installs and maintains the system, and the business typically pays a fixed monthly fee or agrees to buy the electricity generated at a set rate.

This approach can appeal to businesses that want minimal upfront cost and predictable payments. However, leasing arrangements come with trade-offs that are important to understand before committing.

What Does Buying a Solar System Mean?

Buying a solar system means your business owns the panels, inverter, and associated equipment from day one. You may pay upfront or finance the installation, but ownership stays with you.

For most Irish businesses, ownership offers greater long term savings, flexibility, and control over how the system is used and upgraded over time.

If you are exploring whether solar makes sense for your operation at all, see Can Irish Businesses Save Money with Solar Power? for an overview of commercial benefits.

Cost Comparison Over Time

Leasing Costs

Leasing often looks attractive initially because it avoids a large upfront payment. However, over time:

• Monthly lease payments add up
• Electricity savings are partially offset by lease fees
• Contracts can run for 15 to 25 years
• Exit options are often limited

By the end of a typical lease term, total payments may exceed the cost of buying a system outright, without the benefit of ownership.

Buying Costs

When you buy a system:

• Your upfront cost is higher
• Running costs are low once installed
• Electricity generated is free for the life of the system
• Maintenance costs are predictable and manageable

Over a 20 to 25 year lifespan, owned systems typically deliver a far higher return on investment.

Grants, Tax Relief, and Financial Incentives

Ownership allows businesses to fully benefit from available supports, including capital allowances and other financial incentives designed to encourage renewable energy adoption.

Leased systems may limit access to these benefits or transfer them to the system owner instead.

Control and Flexibility

Why Control Matters

Businesses evolve. Energy usage changes. Operations expand. When you own your solar system, you can:

• Expand or modify the system
• Add battery storage
• Integrate EV charging
• Optimise energy usage patterns

Leased systems often restrict changes or require renegotiation.

If your business plans to add EV charging, read How to Integrate Your EV Charger with a Home Battery to understand how solar can support wider energy strategy.

Performance and Maintenance Responsibility

With ownership, you choose how performance is monitored and maintained. Modern systems require minimal upkeep, and performance monitoring tools make it easy to track output and detect issues early.

To understand how monitoring supports long term performance, see How to Monitor Your Solar Performance Like a Pro.

Leasing providers usually manage maintenance, but this can also mean slower response times or limited transparency around system performance.

Asset Value and Balance Sheet Impact

An owned solar system is a business asset. It can:

• Improve property value
• Reduce operational energy costs
• Strengthen sustainability reporting
• Support ESG goals

Leased systems do not appear as owned assets and may complicate property sales or lease agreements.

For property owners and landlords, see Solar for Landlords: Reduce Bills and Boost Property Appeal to understand how ownership adds long term value.

When Leasing Might Be Considered

Leasing can make sense in limited situations, such as:

• Short occupancy terms
• Capital constraints with no access to finance
• Businesses seeking very short term energy savings

Even in these cases, businesses should carefully assess long term costs and contractual obligations.

Why Buying Is Often the Better Fit for Irish Businesses

For most Irish businesses, buying solar delivers:

• Higher lifetime savings
• Greater system control
• Access to grants and tax relief
• Asset ownership and balance sheet benefits
• Flexibility to expand or upgrade

Combined with falling installation costs and improving technology, ownership remains the most effective path to long term energy cost reduction.

Final Thoughts

Solar leasing and buying both exist in the Irish market, but they serve very different business needs. Leasing prioritises low upfront commitment, while buying prioritises long term value and control.

For businesses planning to stay in their premises and reduce energy costs over decades, owning a solar system typically offers the strongest financial and operational benefits.

If you would like a tailored assessment of whether buying solar makes sense for your business, WattCharger can evaluate your site, energy usage, and return on investment potential.