Guide · Solar PPA
What is a solar PPA, and how does it work?
A solar power purchase agreement (PPA) is a contract where a funder pays for, installs and maintains solar panels on your business premises, and you buy the electricity they generate at an agreed price per kWh. You pay nothing upfront and only pay for power the system produces.
1. Site assessment
Roof (or land), electricity consumption, half-hourly data where available and the business's credit position are reviewed to see if the site is fundable.
2. Proposal and contract
The funder proposes a system size, a PPA rate per kWh, any annual indexation and the contract term. You review terms before committing.
3. Installation
The funder pays for design, grid applications, installation and commissioning by accredited installers.
4. Buying the power
You buy the solar electricity you use on site at the PPA rate. Grid electricity is still supplied as normal for the rest.
Who maintains it
The funder owns, insures, monitors and maintains the system for the term. Your obligations usually cover roof access, keeping the site available and paying invoices.
End of term
Depending on the contract, the system may transfer to you, be extended, or be removed. Always check the end-of-term clause before signing.
FAQs
Common questions
Ready to make energy simpler?
Free, no-obligation advice from a UK-based team.