Frequently Asked Questions

A Power Purchase Agreement is a financing arrangement where a third-party investor owns the solar panels and you purchase the electricity generated at a predetermined rate. This allows businesses to benefit from solar energy without the upfront capital costs of purchasing and installing the system.

Key benefits include: zero upfront capital expenditure, fixed electricity rates for the term of the agreement (typically lower than current grid prices), the solar provider handles all maintenance and repairs, improved cash flow management, reduced carbon footprint, and enhanced corporate sustainability credentials.

PPA terms typically range from 10 to 25 years, with 20 years being most common for commercial installations. The term length affects the rate you pay – longer terms often mean slightly lower rates but you commit for more years.

At the end of the PPA term, you can extend the agreement at reduced rates if you require free servicing maintenance and free call out charges, or simply buy the system in the majority of cases for a nominal sum usually one pound.

During the PPA term, the solar provider retains ownership of the panels and is responsible for all maintenance, insurance, and monitoring. You simply purchase the electricity generated at the agreed rate.

With a PPA technically you do not own the panels until the end of the agreed term or you buy out the PPA within the term. Any export payments meanwhile will go the PPA funder. As a rule the design of the solar array is such that the PPA provider will look for at least 85% usage of the power generated from the panels therefore the system size will remain within this constraint.

Most PPAs include transfer provisions allowing the agreement to be transferred to the new property owner. This can actually be a selling point for your property, as it comes with reduced energy costs already in place.

From signing the PPA to being fully operational, most commercial solar installations take 8-16 weeks. This includes the survey, design, permitting, installation, and grid connection process.

Most commercial rooftop solar installations do not require planning permission as they fall under permitted development rights. Ground-mounted systems or installations in conservation areas may require approval. Your PPA provider will handle all necessary permissions as part of the service.

The PPA provider is responsible for all maintenance, repairs, monitoring, and insurance throughout the term. This includes annual servicing, cleaning, and any repairs needed to keep the system operating at optimal efficiency at no additional cost to you.

The rate is typically set at a fixed pence per kilowatt-hour (kWh) for the duration of the agreement. It is usually set below the current grid electricity rate, providing immediate savings. Some PPAs include annual escalation clauses – typically 1-5% per year – which may still work out cheaper than rising grid prices.

Yes, most PPAs include an early buyout option. The purchase price is typically calculated based on the remaining payments and current fair market value of the system. This allows you to own the panels outright and benefit from all future energy generation savings.

PPAs are ideal for businesses with suitable roof space or land, good creditworthiness, and significant electricity consumption. Properties with south-facing roofs, no significant shading, and ample space for solar panels are best suited. A free site survey will determine if your premises are suitable.

Simply complete our inquiry form or call us to discuss your requirements. We will arrange a free, no-obligation site survey to assess your property's suitability. Once approved, the PPA provider handles everything from design through to installation and ongoing maintenance.