Why PPAs are the perfect solution for Businesses Looking to Fund Solar

Commercial Solar PPA: Solar Power with No Upfront Cost

A commercial solar PPA (power purchase agreement) lets your business use solar power without paying for the system. A funder pays for the panels, we design and install them, and you buy the electricity they generate at an agreed rate for 5–25 years. It suits businesses, farms, charities and public bodies that would rather keep their cash for the day job.

BrightEdge Solar is an MCS and RECC accredited installer based in Beverley, East Yorkshire. We work across Yorkshire, the North and the rest of the UK, with competitive PPA providers.

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How a commercial solar PPA works

We assess your site. We study your bills, and half-hourly data if you have it, then design a system that offsets the power you import and uses as much solar as possible on site.
A funder reviews the project. Our PPA providers assess your business, building and electricity use, then confirm whether they will fund it and on what terms.
You agree the rate and term. You agree to buy the power at a fixed or index-linked rate, usually for 5 to 25 years.
We install and connect. The funder pays for the installation. We build it, handle the G99 grid application and commission the system.
You pay for the power you use. The solar power is metered and you pay per kWh. Your rate is normally below what you would pay your supplier, so you save without spending capital.

Who a solar PPA suits (and when buying is better)

A solar PPA suits you if:

you would rather keep capital for stock, staff, machinery or growth;
you use a lot of power during the day, so most of the solar is used on site;
you are confident you will be at the site for the whole term;
you want someone else to own the performance and maintenance.

Buying outright usually gives the best long-term return: you own the system, keep all the savings and can claim capital allowances. If you own the building, plan to stay and have the cash or cheap finance, buying may suit you better. Funders tend to prefer larger systems, so smaller sites often buy or use finance. Our solar PPA vs buying guide compares both, and solar finance covers the other routes. We can price the same system both ways.

We install for commercial sites, farms, charities and schools.

Worked example: a 300 kWp commercial solar PPA

One of our larger PPA-funded jobs is a flat-roof, multi-unit business park in Peterborough. We installed 300.06 kWp of east-west solar, and the funder paid for it. You can read the full Peterborough case study.

Building	Flat-roof, multi-unit business park, Peterborough
Funding	Power purchase agreement
System size	300.06 kWp (668 × 450 W panels)
Estimated annual generation	About 268,000 kWh a year (design estimate, not metered)

Here is how the mechanics work on a system this size:

Generation. The panels are designed to produce about 268,000 kWh a year. Real output varies with the weather.
What you pay. The solar kWh you use, multiplied by the rate agreed in your PPA. The rate and term are agreed for each project, and we do not publish them because they depend on the site and the funder.
What you save. Each solar kWh you use is one you do not buy from your supplier. The saving is the gap between their price and your PPA rate, so it grows with the power you use from the solar.
Self-consumption. How much of the 268,000 kWh a building uses itself depends on when it uses power. That is why funders look at daytime demand.

What's included

Design and installation. We survey, design and install the system, although the funder owns it.
Grid connection. We submit the G99 application and deal with network operator queries.
Handover and monitoring. We show you how to monitor the system and monitor it ourselves for the first two months.
Maintenance and performance. The funder typically looks after these. Servicing and maintenance is also available from us.
Workmanship warranty. Commercial installs come with a 24-month workmanship warranty and your MCS certificate.

What happens at the end of the term

Options depend on the contract, so check them before you sign. Typically you can extend the agreement, buy the system, or have it removed. Ask for the end-of-term price, or how it is set, in writing, plus who pays for removal and what happens if you move or sell the building.

What the funder checks

Funders want to know the payments will be made. Expect checks on:

Your business. A credit check, and your accounts or trading history.
Your building. Whether you own or lease it. If you lease, you need the landlord’s consent, and the funder will want to know how long you will be there.
Your roof. Its age, condition and remaining life, because the panels stay put for the term. Agree in advance who pays to lift and refit them if roof work is needed.
Your electricity use. Strong daytime demand, so most of the solar is used on site.

Grid connection for a solar PPA

Almost every commercial system needs network operator approval, called G99, before it can be switched on. It typically adds 8–12 weeks before installation, sometimes longer. In Hull, East Yorkshire and much of the North East the operator is Northern Powergrid. We handle the application as part of the project. See our G99 application guide and commercial battery storage.

More PPA-funded commercial solar jobs

All generation figures are estimates, not metered results.

Four warehouse units, Middlewich, Cheshire

PPA-funded rooftop solar of 219.56 kWp across four warehouse units, with a separate system on each. Estimated generation: 173,785 kWh a year.

Read the case study

Seven industrial units, Chadderton, Oldham

PPA-funded rooftop solar of 99.44 kWp across seven industrial units, each with its own system. Estimated generation: 80,279 kWh a year.

Read the case study

Business-park unit, Doncaster

PPA-funded rooftop solar of 86.02 kWp on a single business-park unit.

See our Doncaster solar page

Solar PPA FAQs

What is a power purchase agreement for solar?

A long-term contract where a funder pays for a solar system on your building and you buy the power it generates at an agreed rate. There is no upfront cost.

How long is a solar PPA?

Usually between 5 and 25 years, at a fixed or index-linked rate.

Is a solar PPA cheaper than buying?

Not over the life of the system. Buying usually saves more, because you keep all the savings and can claim tax reliefs. A PPA needs no upfront cost and saves from day one.

Can I claim capital allowances on a PPA system?

No. The funder owns the system, so the funder claims the allowances. If you buy, you can claim them. Check with your accountant. See capital allowances on solar panels.

Do I pay business rates on solar under a PPA?

Eligible onsite solar is excluded from business rates until 2035 in England. Under a PPA, who is the ratepayer for the equipment can matter, so confirm it with your PPA provider and rating adviser. See business rates and solar panels.

Can a small business get a PPA?

Sometimes. Funders tend to prefer larger systems and strong daytime use. We will tell you honestly whether your site is likely to qualify.

Find out if a solar PPA suits your site

Send us a recent electricity bill, and half-hourly data if you have it, and tell us whether you own or lease the building. We will price it as a PPA and as a purchase so you can compare.

Call 01482 765063