What Is a Solar PPA? A Complete Guide for Businesses and Landowners

As energy prices continue to rise, more UK businesses are turning to renewable energy to secure long-term, predictable electricity costs. One of the most effective ways to achieve this — without any upfront investment — is through a Solar Power Purchase Agreement, commonly known as a PPA.

In this guide, we’ll explain what a PPA is, how it works, who it suits, and why it’s becoming one of the fastest-growing options for commercial solar power in the UK.

What Is a Solar PPA?

A Power Purchase Agreement (PPA) is a long-term contract where a company agrees to buy clean electricity generated from a solar PV system installed on their site.

The key difference from a standard installation is simple:

👉 You don’t pay for the solar panels or installation. 👉 You only pay for the electricity they generate — at a cheaper rate than grid energy.

The solar provider (developer or investor) owns, funds, installs, and maintains the system throughout the contract period.

How Does a Solar PPA Work?

Here’s the typical PPA process:

1. Assessment

Your roof, land or commercial site is surveyed to confirm suitability.

2. Design & Installation

The solar provider installs the PV system at zero capital cost to your business.

3. You Buy the Solar Energy

You purchase the generated electricity at a fixed, discounted rate — usually 10–40% cheaper than your current tariff.

4. Maintenance Included

The provider handles all servicing, monitoring, and insurance during the agreement.

5. End of Contract

At the end of the PPA (typically 10–25 years), you can:

• Take ownership of the system for a nominal fee (typically £1!)

• Extend the contract

• Request system removal

Key Benefits of a Solar PPA

✔ Zero upfront cost

The biggest advantage — you get solar installed with no capital expenditure.

✔ Immediate energy savings

Because your business buys solar electricity cheaper than grid power, savings start from day one.

✔ Predictable long-term pricing

PPA rates are fixed or rise slowly each year, protecting you from energy market volatility.

✔ Lower carbon footprint

Helps meet ESG, CSR, and sustainability goals with verifiable carbon reductions.

✔ No risk or maintenance liability

The system is fully owned and maintained by the provider — not you.

✔ Increases business resilience

On-site generation reduces dependency on the grid and strengthens energy security.

Who Is a Solar PPA Suitable For?

Solar PPAs are ideal for:

• Manufacturing facilities

• Warehouses & logistics centres

• Farms & agricultural operations

• Retail buildings & supermarkets

• Schools, academies & public-sector sites

• Large commercial roofs or available land

You’ll benefit the most if your business:

• Uses electricity during the daytime

• Has a large or unobstructed roof

• Wants solar energy without capital investment

• Prefers predictable long-term costs

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Typical PPA Contract Lengths and Terms

Most Solar PPAs last between 10 and 25 years.

During this period:

• You buy the solar-generated electricity

• The provider owns and maintains the system

• You enjoy cheaper, cleaner energy each year

At the end, you often have the option to purchase the system outright at a very low cost, making future energy nearly free.

How Much Can a Business Save with a PPA?

Savings vary based on system size and energy usage, but most UK businesses see:

• 10–40% lower electricity bills from day one

• Hundreds of thousands saved over the contract term

• Up to a 20%+ reduction in carbon footprint

Because the installation cost is eliminated, PPAs offer one of the fastest routes for businesses to adopt solar.

Are There Any Drawbacks?

PPAs are an excellent option, but consider:

You don’t own the system initially

Ownership transfers only when the contract ends or if you choose to buy it out.

You’re entering a long-term contract

However, the energy price stability is often a major advantage.

Roof condition must be suitable

A full survey will confirm structural suitability and lifespan compatibility.

Solar PPA vs Buying Outright — What’s the Difference?

Buying Outright	Solar PPA
High upfront cost	Zero upfront cost
Highest long-term ROI	Immediate savings, no capital risk
You own the system	Provider owns it
You pay for maintenance	Maintenance included
Maximum control	Predictable contract terms

How do I start with a PPA?

HPC Renewable Energy are qualified PPA experts, and are ready to help with your energy needs. Being MCS and RECC approved installers, we're more than ready to help you with any Solar PV and Battery Storage Installation requirements. Contact us today to find out more.