PPAs

Power Purchase Agreements, or PPAs, allow businesses to source solar power through an arrangement with a generator who finances and owns the solar system. The system might be located on a roof space or piece of land which the business leases to the generator, or it might be located somewhere else. In either case, the generator would sell the business some or all of the power generated by the solar system at an agreed PPA price. Depending on the deal struck with the generator, this PPA price may be significantly lower than the price the business would otherwise pay for its grid electricity.

Dave Edwards explained that PPAs give stability for both generators and consumers, and gives more flexibility in terms of funding renewable energy.

PPAs generally work best for companies who use a lot of energy, so can see an immediate reduction in their energy costs - however, the pace of change within the sector means that more developments are on the horizon to support smaller energy consumers, too. Watch this space!

The leasing model means that businesses don’t have to invest in capital expenditure while working towards low carbon goals, avoiding ongoing costs for maintenance or insurance of the solar systems, and providing a more stable energy cost.

A PPA can also be transferred to new occupants, should your business move to new premises. We explain solar for businesses in more detail here. There are calls for the government to offer subsidised loans with fixed rates to make installing solar more accessible for businesses, especially SMEs and community organisations.

PPAs allow businesses to secure a contract for renewable energy with the confidence that they’re adding to the renewable energy supply themselves. There are various forms of PPA on offer, which vary based on the structure of the energy generator and its connection to your business; some will directly supply your own power, whereas some will provide power back to the grid instead.

PPA contracts enable authenticity of renewable energy, as you’re paying for energy to be generated at a renewable energy site. Unless you opt for a hardwired solution, the energy generated may not be located near to your site, but you can benefit from the knowledge that you are funding renewable energy generation as opposed to fossil fuel alternatives.

If you’re looking to help the South West play its role in increasing the amount of energy we get from renewable sources, you may be able to install a renewable energy system on or near to your site. This could include solar panels on your roof, land or car park canopy, as well as wind turbines, battery storage and other technologies.

Are you a business who could benefit from renewable energy, or would you like to find out more about how to fund it?

To learn more about the feasibility of integrating renewable energy solutions into your business, as well as the funding options available, contact us on info@actionnetzero.org for a free consultation - our subject matter experts will then be able to support you with initiatives like solar PV, community energy opportunities and wider ESG support.