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POWER PURCHASE AGREEMENTS 

What are Power Purchase Agreements?

PPAs are long-term renewable energy contracts. They are increasingly popular with big companies, SMEs, and local authorities. Why? Because they are a reliable way of decarbonising their electricity consumption, contributing to the energy transition.

They are called “Green Power Purchase Agreements” (Green PPAs). These are green power purchase agreements from renewable energies which operate over the medium or long term (15-30 years). Clients who purchase these have access to a reliable, certified green energy at a predefined, stable rate. There are several types of PPAs, find out more about them here.

DIFFERENT TYPES

Roof Mounted or Ground Mounted

A suitable physical location (whether ground-mounted or roof-mounted) must be available to host the site on-site or near site. As a rule of thumb, at least 1 square meter of roof space would be required per kW of solar PV capacity, but this will vary considerably depending on the shape and configuration of the roof (angled or flat) and whether it is obstructed by ventilation units or similar. A large-scale ground-mount PV installation will require at least 1.6 hectares (4 acres) per MW.

Cost

A power purchase agreement requires £0 upfront cost instead you will be charged 10p – 20p per kWh for the period of the agreement.

Grouping of properties are available for landlords on a single agreement.

PPA ENQUIRIES

Please fill out this small contact form if you are interested in Power Purchase Agreements

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What are the advantages of roof-mounted PPAs?

  • Tends to be less costly than ground-mounted solar panels installations. Roof-mounted solar isn’t as costly because it doesn’t require starting from scratch. Your roof already provides some of the foundations for the solar array.
  • Unauthorised access to panels is minimised. Only people who have access to your rooftop can access your solar panels.
  • Utilises unused roof space. With roof-mounted panels you can put all that unused roof real estate to use, instead of letting it absorb the sun’s heat, which eventually makes its way down into the building. 

What are the advantages of ground-mounted PPAs?

  • Higher energy production. Ground mount solar systems are free and open and not blocked by obstructions of any kind like a rooftop system can be. Solar panels receive maximum sun exposure, thus allowing you to generate more energy.
  • Your roof cannot be replaced without removing the panels. If you ever have to renovate the roof or remove heavy equipment, such as HVAC units, from your roof, you won’t need to figure out how to remove the panels.
  • Easier installation. Ground mounts tend to be easier to install than roof mounted panels.

Main benefits of PPAs?

The biggest benefits for the consumer are:

  • A clean supply of energy which can be traced from a specific asset.
  • They generate additionality: Signing a PPA makes it feasible to invest in renewable assets, thereby reducing the amount of power generated from polluting sources.
  • Possibility of branding the renewable asset.
  • Competitively priced energy (significant discounts on current and future energy prices).
  • Electricity at a stable and predictable price.
  • Each product is adapted to the client’s needs.

As for the benefits of PPAs for developers, we can mention:

  • They allow them to invest in new assets because of the long-term revenue certainty they provide.
  • They allow investment decisions to be made based on the criteria of profitability versus risk.
  • They make the project bankable.
  • They establish long-term relationships with end clients.
  • They are an alternative means of investment in renewable assets, in addition to participate in auctions or to invest merchant.

Finding the right Power Purchase Agreement. 

For a buyer looking at a Power Purchase Agreement solution, the challenge is navigating the marketplace and the options available. There are multiple PPA options at the point of delivery, including Virtual or Synthetic, Physical and Sleeved. Additionally, there are multiple options on how the energy is delivered to the buyer, including Baseload PPA, ‘as-consumed’ PPA or pay ‘as-generated’ PPA. The complexity and sophistication of these options put many consumers off entering the marketplace. 

For the developer, there are also challenges like finding suitable buyers, who understand the pricing structure of a PPA. Companies traditionally sign short-term supply contracts. Therefore, it can take time and education to get buyers comfortable with locking in energy agreements for 20-30 years. Increasing levels of market volatility mean buyers are reluctant to fix pricing structures over the long term and are looking at shorter-term PPA options. Developers are keen to secure long-term agreements as it supports the investment and financing of the asset, as they can attribute long-term revenue clarity to the project.

PPA ENQUIRIES

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For centuries, the world has been consuming electricity in the same way. We are here to change the status quo and are on a mission to enable every home or business to produce their own electricity.

 

Client satisfaction is our top priority which is why our teams work tirelessly to deliver client-tailored, quality results and develop long-lasting relationships.

OUR MISSION

To expand the accessibility and usage of renewable energy across the globe, through the production of high-quality and cost-effective solar power solutions.

OUR VISION

To become the global leader in solar energy manufacturing and installation. Our goal is to provide simple and reliable solutions that enable the delivery of sustainable and grid competitive electric power to the world.

Design & Procurement

Logistics & Warehousing 

Installation & Management

Energy Management

Warranties & Guarantees

Operation & Management

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Long – term cheaper electricity

Government data indicates that average electricity prices in the industrial sector are rising by 5.04%* per annum. That equates to your bill doubling every 14 years.

HOW CAN A SOLAR POWER PURCHASING AGREEMENT BENEFIT MY BUSINESS?

 

Immediate savings on electricity bills

Solar electricity is purchased at a much cheaper rate than is available from your current energy provider

No cost ‘green’ credentials

Improve your company’s environmental responsibility and enhance relations with green thinking customers, suppliers and staff

Long-term protection 

The unit price you pay for electricity generated by the solar PV system will only rise in line with RPI, allowing you to budget more effectively

No maintenance or insurance costs

We proactively manage the system under a long-term operation and maintenance contract, including the provision of insurance cover, all at no cost to you

Fully transferable

The PPA can be transferred to new occupants of the property should you move to new premises

No upfront cost

Your commercial solar PV system is entirely funded by us so you start saving from day one