A PPA (Power Purchase Agreement) is an agreement between the funding provider and an energy user to install a solar solution and the provider charges the tenant for the electricity produced, usually at a much reduced rate.
The key benefits for the consumer is no up front costs and greener, cheaper energy.
The PPA provider surveys the consumers site and usage. A initial desktop survey is used to calculate the most efficient solar system which ultimately gives the best savings.
The Consumer receives a full report including the size of the solar installation, the energy prices and the expected financial and CO2 savings.
Once the parties have agreed the terms, the next step is to request a DNO connection. (Distibution Network Operators) This is a legal requirement for any commercial solar installation to connect to the grid.
NB not all PPA providers do this as part of their package and some ask the tenant to apply and pay. Comgen includes this into its package, making it truly no up front cost.
The provider instructs the installation team to build out the solar solution. Part of the installation may require roof repairs, upgraded electrics (This is included with Comgen’s PPA). Once the system is installed and live the tenant starts using clean, green energy.
The PPA provider will bill you in accordance with your agreement and usage. Therefore you should start making considerable savings straight away.
PPA is an agreement between the provider and tenant to install a solar solution with no up front cost and the provider charges the tenant for the electricity produced, usually at a much reduced rate.
The price can vary dependant on installation cost and efficiency of the system. The average electricity prices for grid prices in 2023 was 38.4 p/kWh. The average electricity price for PPA provided electricity in 2023 was 15.9 p/kWh.
The saving is dependent on solar solution size, efficiency and usage. The average reduction in energy savings is 30-50%.
Solar is a renewable energy, which turns the suns rays into electricity. Therefore there is no burning of fossil fuels or emissions.
PPA’s can usually be cancelled at anytime. There are clauses dependent on when you cancel. The tenant or the provider can buy back the system.
PPA’s can be transferred. Therefore the new tenant of a building can also take advantage of the system. If a PPA is cancelled before the contract date the system can be moved to new premises or cancellation clauses can be agreed.
Prices are calculated dependant on cost of installation, condition / access of roof, contract length and usage. Comgen maximise efficiency to make the biggest savings.
Each PPA provider will have different qualifications. It can depend on lease terms, solar size, company finances. Comgen uses private funding and is a lot more flexible than financial institutions like banks.
Yes, you can choose different energy suppliers for your grid electricity.
The solar is designed to supply as much energy as you use. The solar supply is restricted by size and sunshine. Therefore any additional electricity required will be topped up via your grid supplier.
A single solar panel can offset 900kg of CO2 a year. A typical warehouse roof installation offsets on average 100 metric tons of CO2 a year.
The minimum size is dependant on the PPA provider. A lot of PPA providers have a minimum of a roof size of 1,000m2. Comgen have no minimum.
Commercial solar rooftop installations are typically priced at £1,000 to £1,500 per kW, this can be an expensive up front cost option for business energy users.
Example
A small 100kW system will cost an estimated £100,000 to £150,000.
Taking advantage of a commercial solar PPA you could benefit from substantial savings being an estimated £100 per kW annually, using the example above you would expect your energy bills to reduce by £10,000.
The main source of savings comes from the reduced electricity bill. Your grid supplier is typically charging 34p/kWh (average 2024). The commercial solar PPA price is typically up to 50% of the grid rate and using the example above the saving would be 17p/kWh.
Using the 100KW example, the CO2 saving per annum would be approximately 219 metric tonnes.
Consider the impact of adopting solar power for long-term savings and a sustainable energy approach. Contact us today to explore how rooftop solar panels can benefit your business!
Do you qualify for a Fully Funded Solar Installation?
There is a lot of questions around qualification for a PPA. Why not pop your information in and we can give you an instant confirmation if you are eligible for fully funded solar.
Congratulations!
Based on the information provided it looks like you qualify for our fully funded solar installation!
The team will be in touch soon to discuss further and gather more information.
Uh oh, there was an error sending your message.
Please try again