Power Purchase Agreement Explained
Power Purchase Agreement Explained refers to a long-term contract in which businesses or property owners agree to purchase renewable energy generated and maintained by a third party. This arrangement often requires no upfront costs, providing a cost-effective solution for adopting clean energy without owning the equipment.
Secure your business’s energy future with a fully funded commercial Power Purchase Agreement (PPA).
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What is a PPA?
A Power Purchase Agreement (PPA) is a contract where a clean energy company installs and maintains solar panels, batteries, or similar equipment on a customer’s property at no initial cost. The customer commits to buying the generated electricity at a fixed, often discounted price for a long-term period, usually between 10 and 25 years. This setup helps lower energy expenses, reduces carbon footprint, and removes the need for upfront investment or ongoing maintenance by the customer.
Battery Storage
Key Features
Power Purchase Agreement Explained
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Learn more about our Operations & Maintenance (O&M) here.
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Power Purchase Agreement Explained
by Industry
The Benefits of a PPA
Power Purchase Agreement Explained
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Our PPA Journey Guide
We handle the design, funding, installation, and long-term operation of bespoke commercial solar PV and battery systems. You simply pay for the electricity you use at a fixed, predictable rate — with zero upfront costs and full maintenance included.
01
Free Energy Assessment
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Bespoke PPA Proposal
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Installation & Setup
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Immediate Savings
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Ongoing Maintenance
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Choose Your PPA Solution
For your Solar PV or Battery Storage project
Basic System
- Small system installed
- Guaranteed energy cost savings
- Full design & DNO approval
- Basic care & monitoring
- Simple. Smart. Immediate savings
Standard System
- Medium system installed
- Battery / EV chargers
- Full design & DNO approval
- Full care & monitoring
- Upgrades available anytime
Premium System
- Large system + site upgrades
- Roof works / EV chargers
- Full design & DNO approval
- Premium care & monitoring
- All-inclusive, future-proof package
Our Other Services
Power Purchase Agreement Explained questions
A Power Purchase Agreement (PPA) is a financial arrangement that enables businesses to install solar panels or battery storage systems without paying any upfront costs. Instead of owning the equipment outright, the business agrees to buy the energy produced at a fixed, often discounted rate over a long-term contract. This setup allows companies to access renewable energy more easily while avoiding large initial investments. By locking in lower energy prices, businesses can reduce their operating costs and benefit from clean energy. PPAs make sustainable energy solutions more affordable and practical for many organizations.
A Power Purchase Agreement (PPA) is a contractual arrangement between an electricity generator and a purchaser, typically a utility or large energy consumer. Under this agreement, the generator commits to supplying electricity at a predetermined price for a specified duration, ensuring price stability and revenue certainty. PPAs are commonly used in renewable energy projects, facilitating financing by guaranteeing a steady income stream. They outline terms such as delivery schedules, pricing mechanisms, and penalties for non-compliance. PPAs play a crucial role in promoting sustainable energy investments by reducing market risks. For detailed information tailored to your specific needs, please contact us via the page footer.
A Power Purchase Agreement (PPA) is particularly beneficial for high-energy-use businesses such as manufacturers, warehouses, retailers, data centres, and farms. These organizations consume substantial amounts of electricity, making them ideal candidates for a PPA. By entering into a long-term contract to purchase renewable energy, they can achieve significant energy cost savings over time. Additionally, PPAs support sustainability goals by reducing reliance on fossil fuels, thus lowering carbon footprints. Companies also benefit from improved Energy Performance Certificate (EPC) ratings, enhancing their market reputation and compliance with regulatory standards. Overall, PPAs offer a strategic solution for reducing operational costs while promoting environmental responsibility.
A Power Purchase Agreement (PPA) offers significant benefits to commercial energy users, delivering long-term value and sustainability. First, it requires zero upfront cost, eliminating capital expenditure barriers. Users benefit from discounted, fixed energy rates, ensuring predictable, lower expenses over the contract term. Additionally, PPAs provide free lifetime maintenance, reducing operational burdens and costs. Enhanced Energy Performance Certificate (EPC) ratings improve property value and compliance with regulations. Crucially, PPAs contribute to substantial carbon reduction by promoting clean energy use, supporting corporate sustainability goals. Together, these advantages make PPAs an attractive, cost-effective solution for businesses seeking reliable, eco-friendly energy.
To provide you with a tailored PPA proposal, we need some essential details about your business and energy consumption:
Site Address
Company/Landlord Name
Tenancy Type (freehold/leasehold)
12 Months Annual Consumption Data (preferably with 30-minute half-hourly billing data)
Current Utility Rates (daytime & nighttime rates)
Current Energy Contract End Date
Once we receive this information, we can assess your needs and provide a bespoke PPA proposal with transparent savings.
A battery storage Power Purchase Agreement (PPA) enables businesses to optimize energy costs by storing electricity during off-peak, lower-cost periods—such as Eco7 hours—and discharging it during peak rate times. Under this arrangement, a third party installs and maintains the battery system, while the business purchases stored energy at agreed rates. This setup allows companies with high or fluctuating energy demands to reduce reliance on expensive grid power during peak hours, resulting in significant cost savings. By leveraging stored energy efficiently, businesses enhance energy management, improve budget predictability, and support sustainable practices without upfront capital expenditure.
Solar and battery PPAs typically last between 15 to 25 years, providing your business with long-term, predictable savings. After the contract ends, you will have the option to own the system at no additional cost, continuing to benefit from the renewable energy it generates for many more years.
A Power Purchase Agreement (PPA) can indeed be scaled to accommodate a business’s growing energy demand. PPAs are inherently flexible contracts designed to adapt to changing consumption needs. As a company’s energy requirements increase, the renewable energy system tied to the PPA can be expanded through additional capacity installations or system upgrades. This scalability ensures that the energy supply remains aligned with demand without renegotiating the entire agreement. Consequently, businesses benefit from a sustainable energy solution that evolves alongside their operations, providing stability, cost predictability, and environmental advantages as they scale up their energy usage.
Businesses are under increasing pressure to improve their Energy Performance Certificate (EPC) ratings, especially with government regulations tightening. A PPA system can dramatically improve your EPC rating by reducing your reliance on grid electricity and cutting your carbon footprint. A higher EPC rating can help you avoid penalties, increase the market value of your property, and attract sustainability-conscious clients.
If a solar or battery system under a Power Purchase Agreement (PPA) stops working, the service provider promptly addresses the issue to restore full functionality. The PPA includes comprehensive maintenance and repair services at no additional cost to the business, ensuring uninterrupted system performance. This arrangement eliminates unexpected expenses, providing financial predictability and peace of mind. The provider’s commitment to ongoing monitoring and rapid response minimizes downtime, maximizing energy generation and savings. Ultimately, the business benefits from reliable, efficient clean energy without the operational burden, making PPAs a risk-free and cost-effective solution for sustainable power needs.
Getting started is easy! Simply provide us with the required details (such as your site address, energy consumption data, and current utility rates), and we’ll create a custom, no-obligation PPA proposal that’s tailored to your business’s needs. From there, our team will guide you through the installation process and ensure the system is set up for optimal performance.
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