What is A Solar PPA?
Immediate Savings on Electricity Bills
Zero Upfront Cost
We are delighted to be able to offer a fully funded Solar PV system under a Power Purchase Agreement (PPA). A PPA is a unique solution that allows your business to replace a portion of your current grid electricity consumption with zero-carbon electricity from the solar panels. Included within this agreement, we supply and install the equipment at your business premises. Our solution is designed to reduce your electricity costs and carbon footprint from day one, with no up-front cost to you.
A Solar PPA or Power Purchase Agreement is a long-term contract between:
An investor who pays for the installation and maintenance of a solar PV system to supply a site with solar electricity.
The site owner who agrees to purchase electricity generated by the solar PV system.
The purchase price of solar electricity is intended to be set at a discount to your grid cost of electricity. The system will be a roof-top or ground-mounted system installed on site. The contract term will be 20 years.
Benefits of PPA
Zero Upfront Costs
There are no upfront costs to your business - you simply benefit from reduced electricity rates, allowing you to save money on your energy bills and protect against rising and volatile electricity prices.
Complete End-to-End Service
We will design and install the solar PV equipment, working with our expert partners. We will also take care of the maintenance, operation and performance of the solar system for the duration of the agreement. You are not required to supply personnel, equipment or meet the cost of operating the system.
Flexible
We aim to provide flexibility within our PPA and Lease arrangements, meaning that if you choose to sell the building there is the opportunity for the new owner to take over the agreement under the same terms (subject to approval).
In this end-to-end solution we:
Want the commercial and environmental benefits that a solar PV system brings but don't have capital available?
Under our unique funding mechanism, you will purchase the power generated by the installed system from us at a fixed £/kWh price*. This is intended to be cheaper than purchasing directly from the grid, and you will only pay for the electricity the system produces; excess power not consumed will be exported to the grid. Invoicing and payments will take place monthly.
The term of the PPA will be 20 years. The rights and title to the system will pass to you at the end of this term, meaning you will benefit from the power produced for the remaining useful life of the equipment. If you choose to sell the building, we can provide the opportunity for the new owner to take over the PPA and the lease under the same terms (subject to approval).
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*This price will increase annually at a rate of 2% from the anniversary date
Design a rooftop or ground mounted solar PV system suitable for your site
Arrange all planning permissions, licences, and permits prior to installation
Fully fund, supply, and install the system, meaning no upfront cost to you
Operate, monitor, maintain, and insure the system throughout the PPA term
Fully fund any maintenance, refurbishment, or roof upgrade costs
Capture and report system performance data to you.
What are the stages?
FAQs
More information
How long is the PPA and lease?
The PPA and lease terms are typically 20 years.
How does the system effect the roof?
The system will be installed on the roof of your premises in a safe and compliant manner using experienced and professional contractors. Our certified partners will ensure the roof is suitable for a solar system before any installation works are carried out.
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What happens at the end of the lease?
At the expiry of the lease term, you may terminate the PPA and ownership of the system will pass to you. You will have the opportunity to use the renewable power from the system for the remaining useful life of the equipment.
What happens if we decide to sell the building?
After the seventh anniversary of entry into the PPA and Lease, you have a ‘break right’ under the PPA provided you pay a ‘buyout price’ calculated by reference to the remaining payments due under the agreement at the time of exit, based on the forecast electricity generation. Once this is paid ownership of the system will pass to you and you may end the lease so that you are free to sell the building. Alternatively, we may consent to you transferring the PPA and Lease to the proposed new owner of the building. We would endeavour to give that consent if the proposed new owner met our identification, verification and financial checks.
Can we exit the lease early?
As noted above, after the seventh anniversary of entry into the PPA and Lease, you have a ‘break right’ under the PPA but there is a ‘buyout price’ to pay (see above)
Can we transfer the lease to a proposed new owner of the building?
You may transfer the PPA and Lease to any proposed new owner of the building, subject to our consent. We would endeavour to give that consent if the proposed new owner met our identification, verification and financial checks.
Who is responsible for cleaning the panels?
We are responsible for cleaning the panels as part of our maintenance obligations under the PPA. This cost is included in our offering and there is no additional charge.
What happens if the system doesn’t work?
We are responsible for the maintenance, operation and performance of the system. You only pay for the electricity generated by the system, so if it doesn’t work you don’t pay. We will seek to ensure that the system performs to its optimum to provide the expected level of electricity output. To achieve this, we will monitor the system remotely and ensure that any performance issues are investigated and resolved as soon as possible. In the event the system stops working we will have one of our trusted partners attend the site to fix it if this cannot be done remotely.
What happens if the system is damaged?
In the event the system is damaged we will have one of our trusted partners attend the site to fix it if this cannot be done remotely.
If you are responsible for the damage to the system, then you may have to pay us an amount equal to the revenue lost as a result of that damage.
How do we know the system is working and we are using the energy?
The solar system data can be accessed remotely by ourselves and each month we can provide a performance report showing the electricity generated and consumed at the site. You should also notice a reduction in your grid electricity consumption through the half-hourly data you receive from your energy supplier.
Who insures the system?
We will insure the system at no cost to you.
Do we need lender consent?
If you have a charge or mortgage over your building then lender consent will likely be required. We will help coordinate you obtaining that consent.
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