Solar power purchase agreements · UK
Commercial Solar PPA UK — Solar Panels With No Upfront Cost
A PPA provider funds, installs and maintains solar on your building. You buy the electricity it generates at a fixed rate — typically 10–14p/kWh against 24–28p from the grid.
- 500m²+ roof
- 80,000+ kWh/yr
- 15+ yr tenure
- Stable accounts
Indicative UK figures, October 2026; subject to site survey, term and credit.
What is a commercial solar PPA?
Short answer: A commercial solar PPA (power purchase agreement) lets a UK business get solar panels installed with no upfront cost. A provider funds, installs, owns and maintains the system on your roof or land, and you buy the electricity it generates at a fixed rate per kWh — typically well below grid prices — for 15–25 years.
Process
How a commercial solar PPA works
- 01
Check eligibility
Tell us about your site, roof, electricity use and tenure. You get an instant indication of fit.
- 02
Survey & proposal
We match you with a vetted PPA provider, who surveys the site and proposes a system size, rate and term.
- 03
Provider installs
Your provider funds the system and an MCS-certified installer fits it. The provider owns and maintains it.
- 04
Pay per kWh
You pay only for the solar electricity you use, at the agreed p/kWh rate, typically below your grid tariff.
Rates & options
Solar PPA rates vs grid electricity in 2026
A PPA swaps a volatile grid tariff for a lower, agreed rate on the solar portion of your use. Here is how it compares with buying or leasing a system.
| Upfront cost | Typical p/kWh | Who maintains | Tax treatment | Term | |
|---|---|---|---|---|---|
| Grid electricity | None | 24–28p | Network operator | Operating cost | 1–3 yr contracts |
| Solar PPA | None | 10–14p | PPA provider | Operating cost (check IFRS 16 / FRS 102) | 15–25 years |
| Buy outright | £850–£1,050/kWp | ≈0p after payback | You | AIA / 50% FYA may apply | Payback 3–7 years |
| Lease / asset finance | Low or none | Fixed repayments | Varies | Lease or loan treatment | 5–10 years |
Indicative UK figures. PPA: Indicative UK on-site commercial rooftop PPA range; subject to site survey, term and credit. Grid: Typical UK business 1-year fixed unit rates (market averages ≈25–27p, Aug 2026); varies by size, region and contract. Not tax advice.
Eligibility
Is your business eligible?
- Around 500m² or more of suitable roof or land
- Roughly 80,000 kWh a year or more, with strong daytime demand
- At least 15 years' security of tenure (or landlord consent)
- Stable company accounts and credit profile
Guide criteria used by funders; smaller sites may still qualify or suit a purchased system.
When a solar PPA isn't the right fit
- Little daytime electricity use — most generation would be exported, not used on site
- Short lease or likely move within a few years, without a transfer option
- Roof needs replacing soon, or structural or asbestos issues are unresolved
- You have capital available and want the full saving — buying outright may pay back faster
Describe your site and get instant, personalised eligibility guidance — an indication, never a promise of approval.
Worked example
Worked example: a 250kWp warehouse
A mid-sized distribution warehouse with strong daytime demand, paying 26p/kWh for grid electricity and offered a 12p/kWh PPA rate.
Illustrative — your site will differ.
- Annual generation
- 250kWp × 900 kWh/kWp
- 225,000 kWh/yr
- Used on site (80%)
- 225,000 × 0.8
- 180,000 kWh
- Saving per kWh
- 26p − 12p
- 14p
- Year-1 saving
- 180,000 × £0.14
- ≈ £25,200
- Exported surplus
- Normally the provider's
- 45,000 kWh
- Carbon avoided
- 225,000 × 0.2 kgCO₂e
- ≈ 45 tCO₂e/yr
Estimate your own savings
Use our solar PPA calculator with regional yields and transparent formulas, or compare PPA vs buying.
Carbon & ESG
Carbon savings and ESG reporting
On-site solar reduces the grid electricity you buy, which directly lowers your Scope 2 emissions.
Your provider meters generation, so you get real kWh data for SECR, CSRD-style or customer sustainability reporting — not estimates.
Carbon factor 0.2 kgCO₂e/kWh. UK Government GHG conversion factor for grid electricity — confirm latest DESNZ year before launch.
How we match you with a PPA provider
We are a matching service: we don't fund, install or own systems. We assess your site, then introduce you to vetted solar PPA providers and MCS-certified installers suited to your size and sector. Figures on this site are indicative, sourced and dated, and reviewed regularly.
FAQs
Commercial solar PPA FAQs
What is a commercial solar PPA?
A commercial solar PPA (power purchase agreement) is a contract where a solar provider installs, owns and maintains a solar system on your business premises at no upfront cost, and you buy the electricity it generates at an agreed price per kWh. Terms usually run 15–25 years, and the rate is normally set below what you pay for grid electricity.
Is solar really free with a PPA?
No — it is funded, not free. You pay nothing to install the panels, but you pay for every kWh of solar electricity you use at the agreed PPA rate. The saving comes from that rate being lower than your grid tariff, typically 10–14p/kWh against around 24–28p/kWh for business grid electricity in 2026.
How much can a business save with a solar PPA?
Savings depend on how much of the solar electricity you use and the gap between your grid rate and the PPA rate. As an example, a site using 180,000 kWh/yr of solar at 12p instead of 26p from the grid saves about £25,000 in year one. Most PPAs deliver savings from day one, but results vary by site.
What size business qualifies for a solar PPA?
Funders typically look for around 500m² or more of suitable roof or land, electricity use of roughly 80,000 kWh a year or more with strong daytime demand, at least 15 years' security of tenure, and stable company accounts. Smaller sites may still qualify, or may be better suited to buying a smaller system.
How long is a solar PPA contract?
Most UK commercial solar PPAs run for 15 to 25 years, with 20 years the most common. Longer terms usually mean a lower p/kWh rate because the provider recovers its investment over more years. Many contracts include buy-out options partway through the term.
What happens at the end of the PPA term?
Typically you choose one of three options: extend the agreement (often at a lower rate), take ownership of the system (sometimes for a nominal fee), or have the provider remove the panels and make good the roof. Panels usually keep generating for 30+ years, so ownership at term-end can be valuable.
Who maintains the panels?
Under a solar PPA the provider is responsible for maintenance, remote monitoring, repairs and insurance of the system for the whole term. You'll usually need to give reasonable site access and report any roof works that might affect the panels.
What if we move or sell the building?
Most solar PPAs let you transfer (assign) the agreement to the new owner or occupier, or buy out the system using a schedule of prices set out in the contract. Agree these terms before signing — they matter most if there is any chance you'll move during the term.
Find out if your site suits a solar PPA
No upfront cost to install — you pay for the electricity generated, under a long-term agreement.
Check your business eligibility