A solar PPA contract sets out the price you pay per kWh, how long the agreement runs, how the price changes over time, who maintains the system, and what happens at the end of the term. Understanding these terms lets you compare offers fairly and avoid surprises.
Price and how it changes
The core of a PPA is the rate you pay for each unit of energy the system produces. Check whether it is fixed or index-linked, and how any annual change is calculated. A good PPA is transparent about this from the outset.
Contract length
Solar PPAs typically run 15 to 25 years. A longer term supports a lower rate but is a longer commitment, so weigh it against your occupancy and business plans.
Maintenance and performance
Under a well-structured PPA, the provider owns, monitors and maintains the system, so performance risk sits with them, not you. Confirm what is included and any performance guarantees.
End-of-term and exit
Check what happens when the contract ends — many PPAs transfer ownership to you for a nominal sum. Also review any exit or early-termination clauses before you sign, ideally with legal advice.
This guide is general information, not financial or tax advice. Your circumstances determine what applies — please confirm with your accountant or advisor. Get a tailored proposal →
Frequently asked questions
Can I get out of a PPA early?
Terms vary, so any exit or early-termination clauses should be reviewed carefully before signing, with legal advice. A reputable provider will be clear and upfront about them.
What happens to the system at the end?
In many PPAs the system transfers to you for a nominal amount (often £1), after which you keep all the energy it generates. Always confirm the end-of-term terms in your specific contract.
Related guides
- Capital allowances on commercial solar: full expensing & AIA explained
- How solar improves your commercial EPC (and helps with MEES)
- How much can your business save with commercial solar?
See our funding options, commercial solar and solar by industry pages.