Power Purchase Agreement
A power purchase agreement for solar provides commercial organisations access to renewable energy, improved sustainability credentials, and long-term cost predictability.
How Solar PPAs Work
Under a power purchase agreement (PPA), the developer funds and installs a solar system designed to meet a portion of your electricity needs. You then purchase electricity at agreed-upon rates, often lower than grid prices. The developer retains system ownership and is responsible for operation and maintenance. At the end of the PPA, ownership may transfer to your business or the agreement can be extended,
This setup offers a seamless path to renewable energy adoption, combining cost-efficiency, risk-managed financing, and a clear route to achieving net-zero goals.
Why Choose a PPA for Your Business?
Opting for a PPA for your business comes with several benefits, such as:
No upfront capital required
with a fully funded system deployment, it makes renewable energy accessible without straining your capital budget.
Fixed-rate electricity (or indexed)
you can enjoy cost certainty over your agreed term and protection from volatile energy markets.
Operational simplicity
as your developer, we’ll handle everything from design, installation, monitoring, and ongoing maintenance.
Scalability and flexibility
PPAs can adapt to your energy needs over time, offering solutions to expand or modify assets.
Sustainability benefits
you’ll gain immediate renewable energy usage and enhance ESG credentials for your organisation.
Which PPA Model Fits Your Needs?
You can choose between different solar purchase power agreements and pricing structures depending on what suits your business best. Some PPA models and pricing structures include:
On-site or Direct-Wire PPA
This is where the solar system is installed on your premises – either on the roof or on adjacent land – and is directly connected to your facility. This approach delivers renewable energy directly into your operations, reducing grid dependency and energy loss.
Off-site or Virtual PPA
In this setup, you purchase energy generated from a remote solar farm. The electricity may feed into the wholesale market, with energy credits applied to your account – this is ideal if on-site installation isn’t feasible.
Pricing Structures
Fixed-Price PPA
This guarantees long-term rate stability. It simplifies budgeting and supports accurate energy cost forecasting.
Indexed PPA
This is where energy rates are tied to recognised market indices, such as the Retail Price Index (RPI), allowing flexibility and inflation alignment.
Pay-as-Produced PPA
You pay only for the energy actually generated, which is ideal for aligning purchase cost with production volume.
Baseload PPA
You pay for a defined quantity of energy delivery, whether produced or not, providing supply certainty but requiring careful load-path planning.
How to Get Started with a Solar PPA
Here’s how Eco Providers will guide you through launching your power purchase agreement:
Ready to unlock clean, cost-effective energy for your business?
Don’t hesitate to get in touch with us today to explore how a solar power purchase agreement can work for you – with no capital outlay, long-term savings, and hands-off management.
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Ready to unlock clean, cost-effective energy for your business?Power Purchase Agreement FAQs
A PPA is a long-term energy purchase contract where a developer, like Eco Providers, installs and maintains a renewable energy system, and you buy the electricity generated – usually at a fixed or indexed rate.
PPAs offer predictable, lower-cost energy without capital expense, buffer you against price volatility, and deliver operational efficiency for your business.
Under a fully funded PPA, there usually isn’t any upfront costs. At Eco Providers, we cover installation and ongoing maintenance and you’ll only pay for the energy generated.
PPA contract durations usually span up to 25 years, offering long-term price stability and financial visibility.
You can choose to renew, extend, or purchase the system outright, which helps maintain energy savings and increase your potential net-zero progress.
With SEGs, they offer compensation for exporting surplus solar generation at lower rates, whereas CfDs support large-scale generators under government schemes. PPAs provide your business with predictable pricing, direct usage of generated electricity, and asset ownership flexibility, making them more suited to on-site commercial sustainability.