Power Purchase Agreement
Some UK businesses qualify for free solar panels in the UK, via a Power Purchase Agreement. A Power Purchase Agreement (PPA) allows us to introduce you to our panel of trusted specialist renewable technology funders. Whereby they will fund your solar project installation and maintenance, in return you will agree to switch your energy usage to the panels, and pay an agreed fee for any energy you use.
The criteria is almost entirely dependent on your energy usage. The minimum size system demands a minimum usage, otherwise the funder would not make their target revenue. Please reach out to our team for a bespoke quote, and we will endeavor to set you up with a PPA.
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What is a Power Purchase Agreement?
It’s the new way of funding solar power to your business. Only available to businesses through a specialist renewable energy finance backer. It’s eliminates the need for huge cash injection needed to fund the system, and provides a businesses with solar system that is owned and maintained by the finance backer.
A Power Purchase Agreement sets out to sell electricity that the solar panels generate exclusively to your business, at a pre-agreed rate that is determined by the size of your system, the length of your agreement, and your credit rating.
What happens after a Power Purchase Agreement is finished?
After a Power Purchase Agreement finishes, the solar panels belong to the building owner. The financial backer has made their money on the initial installation, and the system now belongs to the land owner.
The maintenance of the system will then fall to the building owner, but all the power generated will belong to the building owner. They can then use it, sell it to the tenant, or sell it back to the grid- or a mix of all three.
Are You the Landlord?
and improve the viability of yours and your tenants business.
Do You Want FREE EV Chargers?
Don’t own your building, you can simply recommend us to you Landlord, and we’ll reward you by installing FREE EV chargers in your car park. All powered by your solar panels, it’s gone full circle!
Frequently Asked Questions
You are. If you are in a long lease (over 10 years) you can negotiate directly with the finance partner, if not you can suggest it to your Landlord and they can enter into an agreement that benefits you both.
In fact, if you recommend us to your Landlord, we’ll throw in FREE EV Chargers for your business.
It is included as standard. The solar system is property of the lender, who demand that their investment remains fully operational and efficient. Therefore the entire system is covered by our own guarantee.
It doesn’t, but the longer the agreement the better the kWh tariff. Similarly, if you want to pay off the system as quickly as possible and own your own electricity then you could opt for a 10 year agreement, that means you’ll still have many years of operation of your solar panels while you own them.
As you don’t own the solar system for the length of the agreement, it won’t sit on your liabilities sheet. On paper, you’re agreeing a new energy tariff for your electricity that’s much lower than the market rate, rather than investing in solar panels.
More Power Purchase Agreement information
A Power Purchase Agreement (PPA) is a contract between two parties, typically a power producer (such as a renewable energy developer) and a consumer (such as a business or utility), where the producer agrees to sell electricity to the consumer at predetermined terms and conditions. PPAs are commonly used in the renewable energy industry to facilitate the financing, development, and operation of renewable energy projects.
Here’s how a Power Purchase Agreement typically works:
- Agreement Terms: The PPA outlines the terms and conditions of the electricity sale, including the price, duration, quantity, delivery schedule, and any other relevant provisions. These terms are negotiated between the two parties and may vary depending on factors such as market conditions, project economics, and regulatory requirements.
- Project Development: The power producer develops a renewable energy project, such as a solar farm, wind farm, or hydroelectric plant, to generate electricity. The project may require upfront investment in equipment, infrastructure, and construction.
- Electricity Generation: Once the renewable energy project is operational, it generates electricity and feeds it into the grid. The power producer is responsible for maintaining and operating the facility to ensure reliable and efficient electricity production.
- Electricity Sale: Under the terms of the PPA, the power producer sells the electricity generated by the renewable energy project to the consumer at the agreed-upon price. The consumer may purchase all or a portion of the electricity produced, depending on their energy needs and consumption patterns.
- Billing and Payment: The consumer pays the power producer for the electricity delivered according to the terms specified in the PPA. Payments may be based on a fixed price per kilowatt-hour (kWh), a variable price linked to market rates, or a combination of both.
- Contract Duration: PPAs typically have a fixed duration, commonly ranging from 10 to 25 years, although longer or shorter terms may be negotiated depending on the project and the parties’ preferences. The contract duration provides certainty for both parties and helps secure financing for the renewable energy project.
Overall, Power Purchase Agreements offer several benefits for both power producers and consumers. For power producers, PPAs provide a stable revenue stream, long-term customer commitment, and access to financing for project development. For consumers, PPAs offer predictable electricity costs, reduced exposure to fossil fuel price volatility, and the opportunity to support renewable energy deployment and sustainability goals.
