Solar Panel Lease vs Roof Lease: Which Are You Being Offered?
20 October 2026 · SEO Dons Editorial
A solar panel lease and a solar roof lease are different contracts with different parties. How to tell which one is on the table for your commercial building.
The word “lease” appears in almost every solar proposal, and it means different things in different documents. For the owner of a commercial building the confusion is expensive, because the two most common uses put you on opposite sides of the contract.
Two contracts, two directions
A solar roof lease is a lease of part of your building. You are the landlord. A developer is the tenant and pays you rent for the right to put an array on your roof. The developer owns the panels. This is the arrangement behind “sell the roof” and “rent a roof” offers.
A solar panel lease usually means the reverse. Someone leases the panels (the equipment) to the person who wants the power. You are the customer, you pay a regular amount, and the lessor owns the equipment. This is a form of finance. The detailed finance routes belong to specialist guides; for the owner’s side of the tax position, see our capital allowances guide.
A third arrangement often sits next to either: a power purchase agreement under which the occupier buys the electricity at an agreed price. It is a power-sale contract, not a property interest. Our guide to roof lease vs PPA vs licence explains how the three fit together.
A quick way to tell which you have
| Question | Roof lease | Panel (equipment) lease |
|---|---|---|
| Who pays whom? | The developer pays you rent | You pay the lessor |
| Who owns the panels? | The developer, for the term | The lessor, usually |
| What do you grant? | An interest in your roof | Nothing over the building |
| Who needs lender consent? | You, almost always | Depends on the finance terms |
| Who takes the saving? | Shared: occupier gets a discount, developer sells the power | The user of the power |
Why the difference matters to a landlord
If the building is let, the person who uses the electricity is usually the tenant, not you. That is the split incentive. A panel lease where you are the customer only pays if you can recover the cost from someone who benefits, and the capital cost of new plant is not recoverable through the service charge under the RICS Service Charges in Commercial Property standard (2nd edition, in force 31 December 2025). A roof lease avoids that problem because the developer carries the cost and recovers it through the power price. We cover the owner’s routes in your tenant pays the bills, so how do you profit from solar.
What to check in any proposal
- Read the operative wording to see who is the landlord and who is the tenant.
- Ask who owns the panels, during and after the term.
- Ask whether a PPA is bundled, and read it, because your tenants are bound by it.
- Take tax advice on the structure before you sign.
- For a roof lease, work through a landlord’s clause checklist.
Frequently asked questions
Is a solar panel lease the same as rent-a-roof?
No. Rent-a-roof means someone pays to use your roof. A panel lease means you pay to use someone’s equipment.
Which is better for a landlord?
It depends on who benefits from the power and who can fund the system. If you want no capital outlay and are comfortable granting a long lease, a roof lease may fit. If you want to keep the asset and the savings, funding it yourself usually does.
Can I check a proposal with someone independent?
Send an enquiry with the proposal and building details and we reply by email. We do not install or lend.
Get a quote for your property
Tell us about the building and who pays the energy bills. We reply by email.