Solar PPA
Commercial Solar UK offers Power Purchase Agreements (PPAs) for commercial solar installations because many businesses want to reduce energy costs without committing upfront capital. A PPA enables you to access discounted electricity from solar panels installed on your property so that you benefit from clean, low-cost energy while avoiding ownership responsibility.
What Is a Solar PPA?
A Power Purchase Agreement is a long-term contract between your business and a solar investor because the funder owns and installs the system at no cost to you.
Your business agrees to buy the electricity the system generates so that you receive guaranteed savings compared to standard grid tariffs. The PPA investor maintains and insures the system throughout the term because they retain ownership and performance responsibility.
How a Solar PPA Works
Commercial solar PPAs allow businesses to benefit from solar energy without the upfront costs. By entering into a PPA, companies can lower their electricity bills and reduce their carbon footprint, making it a win-win for both the environment and their bottom line.
- We design a solar system matched to your site usage because alignment with real consumption maximises savings.
- An investor installs and funds the system entirely so that you avoid all capital costs.
- You enter a contract to buy the generated power at a fixed rate because this locks in energy cost savings over time.
- The funder maintains and monitors the system so that you never pay for downtime or faults.
- At contract end, you may extend, buy the system, or request removal because ownership remains flexible throughout.
Who Qualifies for a PPA?
Solar PPAs are available to UK businesses that meet key property and credit criteria because long-term investor Solar PPAs are available to UK businesses that meet key property and credit criteria because long-term investor confidence depends on financial and site stability.
Eligibility includes:
- Freehold or leasehold with minimum 15-year term
- Consistent daytime energy usage
- Creditworthy trading history
- Unshaded roof with viable grid access
- Willingness to sign a 10–25 year energy contract
We meticulously conduct site surveys and thorough credit reviews upfront to ensure that only the most promising solar projects move forward to the financing stage. This proactive approach not only streamlines the process but also simplifies reporting by consolidating all essential data in one convenient location.
Benefits of a Commercial Solar PPA
A commercial solar PPA is an innovative financing agreement that allows businesses to benefit from renewable energy without the upfront costs associated with purchasing and installing a photovoltaic (PV) system.
| Benefit | Reason |
|---|---|
| Zero capital outlay | Your business avoids paying for panels, installation, or design, which helps keep cash free for other needs. |
| Reduced energy bills | PPA prices are always 10–30% below grid prices, so you can cut costs each month. |
| Operational simplicity | All repairs and system checks are handled by the investor, making solar power simple for your business. |
| Carbon savings | You use renewable energy at your site, so your carbon footprint drops. |
| Budget certainty | Fixed or clear pricing means you can plan spending with confidence over many years. |
With a solar PPA, you can enjoy the benefits of clean energy while reducing your electricity costs and increasing sustainability for your business. We recommend PPAs for cash-sensitive businesses because they unlock solar savings without financial exposure.
PPA vs Other Finance Models
When considering commercial solar financing options, a Power Purchase Agreement (PPA) stands out as a top choice for businesses looking to benefit from renewable energy.
| Feature | PPA | Lease Purchase | Asset Finance |
| Ownership | Investor | Business | Business |
| Upfront Cost | £0 | Low deposit | 10–20% deposit |
| Maintenance | Included | Optional | Optional |
| Balance Sheet | Off balance sheet | On balance sheet | On balance sheet |
| Ideal For | Tenants / low-capex firms | Asset builders | Tax-offset planners |
A PPA is the most passive and cost-neutral solar model available because you only pay for the energy you use, not the system itself.
What Happens at the End of the PPA?
Most Solar PPAs last from 10 to 25 years, which matches the usual life of the panels. At the conclusion of the agreement, you have the option to continue with the contract, purchase the panels at a reasonable value, or have them removed.
This flexibility ensures that you retain control and are never tied down for longer than desired. The rules for what happens after the contract are always clear, so you know your choices.
Risks and Guarantees
With a commercial solar power purchase agreement (PPA), you can enjoy the benefits of renewable energy without the hassle of maintenance, insurance, or system faults. You are never responsible for solar faults, maintenance, or insurance under a PPA because the system remains investor property throughout the agreement.
Under a PPA, you only pay for the electricity generated and used on your site. This means that downtime does not affect your payments, ensuring consistent savings for your business. All pricing and terms are contractually fixed upfront to provide transparency in long-term energy planning.
By opting for a solar PPA, businesses can reduce their electricity costs while contributing to sustainability efforts. With no upfront investment required and fixed rates over the term of the agreement, this financing option offers a sustainable solution that benefits both your bottom line and the environment.
FAQs
Is a Solar PPA really zero cost up front?
Unlock the power of solar energy without spending a dime upfront by choosing a commercial power purchase agreement (PPA). This savvy financing option lets businesses install photovoltaic systems and slash electricity bills from day one. The investor handles installation costs, while you repay through long-term energy payments. Embrace this sustainable solution to lighten your financial load and boost your business’s eco-friendly credentials.
Can I leave the PPA early?
Before you commit to a solar power purchase agreement (PPA) for your commercial business, it’s crucial to understand your exit rights. Our team will walk you through all the options outlined in the contract so that there are no surprises down the line. This transparency is key when considering the long-term benefits of renewable energy and how it can positively impact your bottom line.
Will my business reduce its carbon emissions?
All the solar power you use on your site lowers your Scope 2 carbon numbers, as the electricity comes from a clean source.
What happens if I sell my property?
The solar power purchase agreement (PPA) offers the flexibility to transfer to a new owner or terminate if your plans change. Solar PPAs are designed with this in mind, ensuring that you have options available to suit your needs and circumstances.
Book a Solar PPA Consultation
Our company, Commercial Solar UK, specialises in providing commercial solar installations through Power Purchase Agreements (PPAs) across the UK. This innovative financing option allows businesses to benefit from renewable energy without any upfront costs, making it a sustainable and cost-effective solution for long-term energy savings.
Your consultation includes:
- Timeline for installation and handover
- Site feasibility check
- PPA rate comparison vs current supplier
- Legal and contract explanation
- Projected lifetime savings and carbon reduction
By offering PPA-based solar systems, we help businesses reduce their electricity bills and contribute to a greener future. We manage everything from eligibility checks to post-installation monitoring so that your system delivers savings without complication.