# Protecting your business from rising energy costs

The most effective long-term hedge against rising energy prices is to generate some of your own power. On-site solar reduces how much you buy from the volatile grid, and a fixed PPA rate locks in a large part of your cost — giving years of budgeting certainty with no upfront outlay.

## Why grid prices are so volatile

Business electricity prices track wholesale energy markets, which swing with global events, supply and demand. That leaves firms exposed to sharp, hard-to-budget increases — a real risk for energy-intensive operations.

## Generating your own power

Every unit you generate on site is a unit you don’t buy at the mercy of the market. Solar therefore acts as a partial hedge, shrinking your exposure to price shocks for decades.

## A fixed rate for certainty

Under a PPA you pay a fixed, predictable rate for your solar — typically guaranteed below the grid — so a significant part of your energy cost stops moving with the market. That certainty is valuable in itself.

## Frequently asked questions

**Does solar fully protect us from price rises?**

It reduces your exposure by cutting how much you buy from the grid, and a fixed PPA rate locks part of your cost. You still buy some grid power, but a much smaller, less volatile amount.

**What if energy prices fall?**

A well-structured PPA is designed to stay below grid rates, and you keep the benefit of self-generation regardless. We explain exactly how the rate works before you commit.

---

Source: [Protecting your business from rising energy costs](https://ppafunding.com/guides/protecting-your-business-from-rising-energy-costs) · Author: PPA Funding team · Updated: 2026-07-30

PPA Funding is an independent introducer operated by DVC Group Ltd (Companies House 10462808), Shrewsbury — not the funder, the installer or the maintenance provider. The service is free to use; a commission may be earned from a partner at no extra cost. Content is educational and is not financial or tax advice.