As energy prices rise and carbon regulations tighten, more UK businesses are turning to solar to take control of their energy future. But what if you could install solar panels on your commercial premises without paying a penny upfront?
Enter the Power Purchase Agreement – or PPA – one of the most accessible and cost-effective ways for businesses to adopt solar.
In this guide, we’ll break down exactly how a Solar PPA works, the benefits, and whether it’s the right fit for your business.
🔍 What is a Solar PPA?
A Power Purchase Agreement (PPA) is a contract between your business and a solar energy provider (like Novus Energy), allowing you to benefit from solar panels installed on your roof without owning the system or paying installation costs upfront.
Instead, the provider installs and maintains the solar PV system at their own expense, and you agree to buy the electricity it generates at a fixed, discounted rate over an agreed period — usually between 10 and 25 years.
How Does a PPA Work?
- Site Assessment & Proposal
The provider surveys your site and designs a solar system tailored to your energy usage and roof space. - Agreement Signing
You sign a long-term contract agreeing to purchase electricity from the solar provider at a rate lower than your current utility tariff. - Installation & Activation
The system is installed and maintained by the provider at no cost to you. - Start Saving Immediately
You begin using clean, renewable energy generated onsite — with no upfront capital required. - Optional Ownership
At the end of the agreement, you often have the option to:- Renew the PPA
- Have the system removed
- Buy the system at fair market value
Key Benefits of a Solar PPA for Businesses
✅ Zero Capital Expenditure
You can adopt solar without diverting capital from core business operations or cash flow.
✅ Immediate Savings
Because PPA electricity rates are typically 10–30% lower than the grid, you start saving from day one.
✅ Protection from Energy Price Volatility
Your rate is fixed, protecting you from future price hikes and allowing accurate budgeting.
✅ Carbon Reduction Goals
PPAs help you meet sustainability targets and reduce Scope 2 emissions — critical for ESG reporting.
✅ Hassle-Free Maintenance
The provider handles all servicing, repairs, and performance monitoring, ensuring optimal system output.
What Makes a Business a Good Fit for a PPA?
PPAs are ideal for businesses that:
- Own or lease large commercial roofs (e.g., warehouses, factories, retail parks)
- Have high daytime energy usage
- Want to reduce carbon emissions without upfront spend
- Prefer not to manage or maintain solar assets themselves
Not sure if your business qualifies? Contact our commercial team for a free site review.
⚖️ PPA vs Direct Purchase: Which Is Better?
| Factor | PPA | Direct Purchase |
|---|---|---|
| Upfront Cost | £0 | High (CapEx investment) |
| Ownership | Remains with provider | You own the system |
| Maintenance | Provider-managed | Your responsibility |
| Savings Over Time | Medium | Higher long-term ROI |
| Carbon Reduction | Yes | Yes |
| Flexibility | Fixed contract | More control |
If cash flow is a concern, or if you prefer a hands-off approach, a PPA may be the smarter route. For those with available capital and a long-term site strategy, ownership may provide better ROI.
How Novus Energy Supports PPA Projects
At Novus Energy, we specialise in helping UK businesses unlock the benefits of solar through flexible commercial PPAs. We work with trusted funding partners and premium technology providers to deliver systems that perform – while you enjoy reduced bills and improved sustainability with zero upfront risk.
We’ve already helped commercial sites like York Racecourse, Harewood Downs Golf Club, and Sowerby Bridge Cricket Club install solar with minimal disruption and measurable results.
Real-World Results: What You Could Save
Let’s say your business uses 150,000 kWh of electricity annually.
- With a PPA rate of £0.12/kWh (vs a grid rate of £0.19/kWh)
- You save £10,500 per year
- Over a 20-year PPA term: £210,000 in total savings
All without spending a penny upfront.
Environmental & Brand Benefits
- Enhance your ESG reporting
- Appeal to sustainability-conscious clients and investors
- Improve your building’s EPC rating
- Reduce reliance on fossil fuels
With carbon regulations tightening and customers demanding more from the brands they support, solar through a PPA shows leadership without the risk.
📞 Ready to Explore a Solar PPA for Your Business?
If you’re looking for a smarter, greener way to power your business — without tying up capital — a PPA could be the perfect fit.
📲 Get in touch with our commercial team today for a free, no-obligation consultation or call us on 01422 768113.