How a Solar Power Purchase Agreement Works
A solar PPA is a long-term contract under which a third-party investor funds, owns and operates solar generation on your site (or sleeves it to you). You buy th…
The UK specialist directory of solar PPAs for commercial off-takers. We match your site to vetted PPA providers, return an indicative p/kWh tariff within one working day, and help you negotiate the term sheet before contracts land in legal. No installer agenda. No provider commission.
Tell us your site — we'll match you with vetted PPA providers and return an indicative p/kWh tariff within one working day.
A solar PPA is a 20-year commitment. The structure, tariff, escalator, term, off-taker covenant requirement, EPC quality and M&V protocols all determine whether you save 20% or 50% of your electricity bill.
A solar PPA is a long-term contract under which a third-party investor funds, owns and operates solar generation on your site (or sleeves it to you). You buy th…
Not all PPAs are alike. The structure that fits depends on whether you own the roof, how many sites you operate, your treasury sophistication and whether you ne…
PPA tariffs are quoted in pence per kilowatt-hour. In 2026 the indicative range across the UK market is 9–22 p/kWh year-1 — well below the 28–32 p/kWh that most…
An escalator is the annual % uplift baked into your PPA tariff. Get the escalator wrong and a 25-year contract that looks cheap in year 1 ends up costing more t…
Term length is the single biggest driver of tariff. Shorter terms mean higher rates; longer terms tie you in. Most UK PPAs run 15-25 years to give the investor …
Solar panels routinely produce for 30+ years; PPAs run 15-25 years. So what happens at the end? Three standard pathways, each with different financial implicati…
Tariffs depend on roof condition, off-taker covenant, term and DNO context — these are indicative bands for a mid-tier deal.
| System | Year 1 tariff | Annual generation | Typical audience |
|---|---|---|---|
| 50kWp PPA | 16–20 p/kWh | 47,500 kWh | Small factories, primary schools, care homes, large retail u… |
| 100kWp PPA | 14–18 p/kWh | 95,000 kWh | Mid-size factories, secondary schools, mid-range hotels, car… |
| 250kWp PPA | 12–16 p/kWh | 237,500 kWh | Factories, distribution centres, large hotel chains, MAT sch… |
| 500kWp PPA | 11–14 p/kWh | 475,000 kWh | Large factories, refrigerated distribution, NHS Trust acute … |
| 1MWp PPA | 10–13 p/kWh | 950,000 kWh | Tier-1 manufacturers, large 3PL operators, NHS Trusts, counc… |
| 2MWp PPA | 9–12 p/kWh | 1,900,000 kWh | Tier-1 manufacturers, data centres, very large 3PL hubs, mul… |
The right structure depends on whether you own the roof, how many sites you operate, your treasury sophistication and what mix of cheap kWh / REGO certificates / asset-ownership flexibility you want.
Generator installs and owns kit on your roof or land; you buy the kWh.
Tariff: 9–18 p/kWh year 1
Best for: Single-site businesses with 200kWp+ of roof or land, occupying for 15+ years.…
Generator builds at a separate location; an electricity supplier 'sleeves' the energy to your MPAN.
Tariff: 11–20 p/kWh year 1 (excludes supplier markup)
Best for: Multi-site businesses, tenants without roof rights, or sites with poor solar resource.…
Financial contract-for-difference referencing a wholesale price — you don't take physical delivery.
Tariff: Strike price typically £45–£55/MWh fixed
Best for: Large corporates with treasury sophistication; net-zero commitments; multi-jurisdiction op…
Direct bilateral agreement with a generator — can be physical or financial, on-site or off-site.
Tariff: £42–£60/MWh fixed or partially indexed
Best for: Investment-grade off-takers signing 20MW+ utility-scale solar farm output.…
Variant of on-site PPA where generation sits inside your private wire; never touches the public grid.
Tariff: 8–14 p/kWh year 1 (lowest tariff band — no grid charges)
Best for: Industrial sites with 1MWp+ load coincident with daytime generation.…
Generation exports to the grid; you receive the kWh via your supply meter under an export-and-import structure.
Tariff: 13–22 p/kWh (higher because of network use-of-system charges)
Best for: Sites with roof but limited daytime self-consumption.…
Every sector has a different load profile, roof typology and covenant strength. We've mapped 2026 indicative PPA terms across ten major UK commercial sectors.
System size: 250kWp–2MWp
PPA tariff: 10–14 p/kWh
Annual saving: £35k–£280k
System size: 500kWp–5MWp
PPA tariff: 9–13 p/kWh
Annual saving: £45k–£500k
System size: 100–500kWp
PPA tariff: 12–16 p/kWh
Annual saving: £12k–£90k
System size: 50–250kWp
PPA tariff: 13–17 p/kWh
Annual saving: £5k–£40k
System size: 250kWp–2MWp
PPA tariff: 11–15 p/kWh
Annual saving: £40k–£320k
System size: 100kWp–5MWp
PPA tariff: 10–14 p/kWh (ground-mount cheaper)
Annual saving: £8k–£500k
System size: 50–500kWp
PPA tariff: 13–18 p/kWh
Annual saving: £8k–£90k
System size: 100kWp–2MWp
PPA tariff: 12–16 p/kWh
Annual saving: £15k–£250k
System size: 30–150kWp
PPA tariff: 14–18 p/kWh
Annual saving: £3k–£25k
System size: 20–100kWp
PPA tariff: 15–19 p/kWh
Annual saving: £1k–£15k
A PPA isn't always the right answer. If you have capital, a 20-year occupancy horizon and the appetite to manage operations, buying outright wins on lifetime cost. We compare PPA head-to-head with every realistic alternative.
CapEx vs OpEx — when ownership wins.
IFRS 16 treatment, monthly cost, exit flexibility.
When PSDS / IETF / Salix beat PPA — and when they don't.
Same name, very different deals — and very different tariffs.
25-year cost comparison; why year-1 tariff is misleading.
Why FTSE 100s increasingly bypass the supplier.
Ten anonymised composite case studies based on real UK PPA deals signed in 2025-2026. Numbers verified against provider tariff sheets.
1200kWp · 11.5p/kWh · 20 years
Year-1 saving: £164,000
720kWp · 12.2p/kWh · 20 years
Year-1 saving: £82,000
1500kWp · 11.0p/kWh · 25 years
Year-1 saving: £195,000
A 60-second form gives us enough to match your site to 3-5 vetted PPA providers and return an indicative p/kWh tariff within one working day. No commission. No installer agenda. No spam.
Get indicative tariff Open the savings calculatorA solar PPA is a long-term contract under which a third-party investor funds, owns and operates a solar PV system on your roof or sleeved to your site. You pay nothing upfront; you buy the kilowatt-hours generated at a pre-agreed tariff that is typically 30-50% below grid import. UK PPAs run for 15-25 years and end with three options: extend, buy at fair market value, or have the system removed. See how a PPA works for the full mechanics.
For a UK commercial site importing at 28-32 p/kWh, a typical on-site PPA delivers a year-1 tariff of 11-15 p/kWh — savings of 13-21 p/kWh on every self-consumed unit. For a 250kWp system generating around 237,500 kWh/yr, that's roughly £35,000-£50,000 of year-1 saving. Run your specific numbers in the PPA calculator.
The UK PPA market in 2026 is split between specialist solar funds (Atrato, Foresight, Bluefield, NextEnergy), corporate-PPA aggregators (Ampyr, Statkraft, Centrica Business Solutions), and bilateral counterparties between independent power producers and large corporates. We aren't tied to any provider — we match your site profile to vetted candidates and return an indicative tariff shortlist within one working day.
Providers generally won't quote below 50kWp because the build-cost-per-Wp economics don't work. The sweet spot is 100-1,000 kWp (mid-commercial). Below 50kWp, asset finance or cash purchase typically beats PPA. Above 5MWp you're into corporate-PPA structures with materially different mechanics.
Yes — if you have at least 15 years of remaining lease. Most PPA providers require lease term ≥ PPA term. If you have less than 15 years tenure, a sleeved PPA (generation elsewhere, sleeved to your meter via a supplier) is the workaround.
Three options: (a) extend at a re-negotiated lower tariff (year-25 panels still produce 88% of original capacity), (b) buy the system at fair market value (typically 10-25% of original capex), or (c) have the provider remove the system at no cost. See our end-of-contract deep-dive.
From first call to commissioning typically 6-12 months: 2-4 weeks for indicative tariff, 4-8 weeks for site survey and heads-of-terms, 8-12 weeks for full contract negotiation, 6-16 weeks for build. Larger systems take longer because DNO connection studies (G99/G100 applications) add 3-6 months.
Yes — especially for systems above 250kWp and investment-grade off-takers. Tariff, escalator type, term length, performance ratio guarantee, end-of-contract options and assignment-on-sale clauses are all on the table during heads of terms. We help off-takers know what to push on.
A PPA charges you per kWh generated; a lease charges a fixed monthly amount regardless of generation. Under IFRS 16 a lease typically goes on-balance-sheet; a PPA can stay off-balance-sheet if structured carefully. PPA shifts performance risk to the provider; lease keeps it with you. See our PPA vs lease comparison.
Yes — though public sector procurement rules apply. For schools and councils, PPAs typically run 25 years and require either a Crown guarantor structure or full procurement under PCR 2015 / PA 2023. The PSDS grant route is often cheaper if you can secure funding, but PPAs are faster to deploy. See schools PPAs.