UK 2026 PPA specialist · Updated monthly

Solar Power Purchase Agreements — zero capital, predictable rates

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.

  • Six PPA structures explained: on-site, sleeved, virtual, corporate, behind-meter, in-front-of-meter
  • 2026 indicative tariffs: 9–18 p/kWh year 1 (vs grid import 28-32 p/kWh)
  • Minimum site size 50kWp. Sweet spot 100kWp–2MWp. Utility-scale 5MWp+.
  • 15-25 year terms with three end-of-contract pathways
9pfloor PPA tariff
for large industrials (2026)
13pmedian PPA tariff
for mid-size commercial
−45%typical electricity bill
cut vs grid import
20yrmedian UK PPA term
(range 15-25 yrs)

Get an indicative PPA tariff

Tell us your site — we'll match you with vetted PPA providers and return an indicative p/kWh tariff within one working day.

No pushy sales. No spam. UK-based advisor reply within 1 working day.

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PPA Mechanics

The mechanics you need to understand before signing

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.

Solar PPA Structures Explained

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…

Solar PPA Pricing: 2026 Benchmark Tariffs

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…

Solar PPA Escalators: Fixed, RPI or CPI?

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…

End-of-Contract Options on a Solar PPA

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…

All 10 mechanics deep-dives

Pricing benchmarks

2026 indicative PPA tariffs by system size

Tariffs depend on roof condition, off-taker covenant, term and DNO context — these are indicative bands for a mid-tier deal.

SystemYear 1 tariffAnnual generationTypical 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…

All size bands (50kWp–10MWp+) Calculate my saving

Six PPA structures

One product family. Six different structures.

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.

15–25 years

On-site PPA

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.…

10–15 years

Sleeved PPA

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.…

10–15 years

Virtual (synthetic) PPA

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…

10–20 years

Corporate PPA (CPPA)

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.…

15–25 years

Behind-the-meter PPA

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.…

10–20 years

In-front-of-meter PPA

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.…

Full structure comparison

Sectors

UK PPA mechanics by sector

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.

Hotels & Hospitality

System size: 100–500kWp
PPA tariff: 12–16 p/kWh
Annual saving: £12k–£90k

Schools & Education

System size: 50–250kWp
PPA tariff: 13–17 p/kWh
Annual saving: £5k–£40k

Hospitals & NHS

System size: 250kWp–2MWp
PPA tariff: 11–15 p/kWh
Annual saving: £40k–£320k

Farms & Agriculture

System size: 100kWp–5MWp
PPA tariff: 10–14 p/kWh (ground-mount cheaper)
Annual saving: £8k–£500k

Retail Estate

System size: 100kWp–2MWp
PPA tariff: 12–16 p/kWh
Annual saving: £15k–£250k

Care Homes

System size: 30–150kWp
PPA tariff: 14–18 p/kWh
Annual saving: £3k–£25k

All sectors + sub-verticals

Compare

PPA vs the alternatives

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.

All comparisons

Case studies

What 2026 deals look like

Ten anonymised composite case studies based on real UK PPA deals signed in 2025-2026. Numbers verified against provider tariff sheets.

All 10 case studies

UK industry accreditations our installer-partner panel holds

MCSCERTIFIED NICEICAPPROVED RECCMEMBER TRUSTMARKGOVT ENDORSED HIESCONSUMER CODE OFGEMSEG REGISTERED

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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.

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FAQs

UK Solar PPA — Frequently Asked Questions

What is a Solar Power Purchase Agreement (PPA)?

A 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.

How much can I save with a solar PPA in 2026?

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.

Who provides solar PPAs in the UK?

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.

What is the minimum system size for a PPA?

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.

Can I have a PPA if I rent my building?

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.

What happens at the end of a PPA contract?

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.

How long does a PPA take to set up?

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.

Are PPA tariffs negotiable?

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.

What's the difference between a PPA and a lease?

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.

Can charities, schools and councils use solar PPAs?

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.

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