What is a Power Purchase Agreement (PPA)?

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.

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.

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.

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.