I've asked him whether he's tried playing them and am awaiting a reply:

One of the key complaints surrounding PlayStation Now is its pricing. As I stated before, the current model is far too expensive for renting multiple games, but Sony might have just solved that.

According to NeoGAF user “Bastion,” games purchased through PSN are playable for free on PlayStation Now. Bastion stated that on the PS3 version of PlayStation Now, their games that they have already bought (Stick It To The Man and Saints Row 2) and are available in the current phase of the Beta are showing up in PlayStation Now with a cart next to them, meaning the games had already been paid for and are playable.

Bastion further stated that their PSN games were not available to play for free on the PS4 version. This could be a case of the PS3 app being more up-to-date though as the console was the first device to receive the PlayStation Now beta.

If this is Sony’s solution to PlayStation Now’s pricing problem, it brings up two very important questions:

1. Will this only apply to PlayStation Now on PS3?
2. Is there a cutoff date to ensure people don’t purchase the game for cheap on PSN instead of renting through PlayStation Now?

Whatever the answers may be, this development is exciting. Hopefully the PS4 version of PlayStation Now receives this much-needed change as the Open Beta approaches.

http://ps4daily.com/2014/07/psn-purchases-ps-now-rumor/

Hmm I thought there was no permament option? Just like 9 months max? So doubt it but maybe I'm wrong.

These are games he's purchased from PSN, not a rental option.

But he plays them through PS Now right? So it's either a new added option as there was no buying as far as I know (not it the beta, only seen the leaked stuff so might have missed that) or it's bullshit.

If it's not bullshit (I'm still awaiting a reply) then it looks like games you've already purchased digitally will automatically be available to play for free with PSNow. This also leads me to believe that there WILL be an option to buy a game digitally if you so wish. Perhaps if you choose that option they'll automatically deduct what you've paid for rental from the price of the purchase.

Fuck please yes!!

Then I can finally play all the awesome PS+ games for PS3 that I couldn't play because I had no room on my harddrive.

They bloody better be. It would be criminal to make someone pay twice for a game.

What about all the free games from ps+ because they show as purchased once downloaded, this sounds like it would cause a headache for sony so im sceptical

I am sceptical about this. It could be easily exploited by people taking advantage of various sales to circumvent the rentals.
And, unless you really really want to save a few bucks by renting a game for a week, will totally defeat the purpose of renting, because it will be much more sensible to purchase the game, own it forever, and stream it whenever you want onto a device of your choice.

Don't get ahead of yourself.  How many times have you seen, "BE CAREFUL NOT TO BUY THE SAME ITEM TWICE" in the store?  Somtimes you can't help buy buy the same item twice because you bought one or 2 out of a set of 15.