Renewable Energy Finance
Solar PV Power Purchase Agreement
Solarsense has partnered with the UK’s leading financial institutions to provide business customers with a free, fully maintained solar PV system via our power purchase agreement (PPA).
We will fund the entire installation of your commercial solar PV system allowing your business to reap the benefits of solar PV whilst preserving your capital. Use our capital today to start your clean energy journey and sometime down the line, when the timing is right, buy the system back from us – if you choose.
What is a power purchase agreement?
A solar power purchase agreement is a financing arrangement that allows businesses, government agencies and educational institutions to purchase solar electricity with no upfront capital cost. You rent your roof and buy the discounted solar electricity rather than investing in a solar PV system of your own.
A PPA offers an effective means to reaping the benefits of solar PV without having to take on the responsibilities of being a solar system owner-operator. A PPA also satisfies companies that prefer to reinvest their funds into core businesses activities.
Underpinned by long-term, proactive operation and maintenance activities, we ensure your system performs in line with expectations and delivers the forecasted savings not just today, but for at least the next 25 years.
How a solar PPA works
Keeping the process simple, transparent and hassle-free.
- We assess the potential of your roof and gather data regarding your current electricity usage and pricing
- We provide you with a proposal demonstrating the financial savings and carbon reduction forecasts
- You agree to lease the airspace above your roof to us and enter into a Power Purchase Agreement (PPA)
- We install the solar PV system with minimal disruption to your business
- You enjoy reduced electricity bills for c.25 years with no maintenance costs and worry-free operation of the system
- After 25 years, ownership of the system transfers to you to enjoy free solar PV electricity for the remainder of the system life – c. another 10 years
Long-term cheaper electricity
Government data indicates that average electricity prices in the industrial sector are rising by 5.04%* per annum. That equates to your bill doubling every 14 years.
No upfront costs or ongoing fees means that opting for a power purchase agreement your business will begin to make savings from day one and continue to benefit for the full term of the agreed term. Once the agreed term ends, ownership of the system transfers to you and your business can enjoy free solar electricity for the remaining life of the system (c. 10 years +).
*Data provided by DBIS, National Statistics and OBRR
BENEFITS AT A GLANCE
How can a solar PPA agreement benefit my business?
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Zero upfront cost
Your commercial solar PV system is entirely funded by us so you start saving from day one
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Immediate savings on electricity bills
Solar electricity is purchased at a much cheaper rate than is available from your current energy provider
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Zero cost ‘green’ credentials
Improve your company’s environmental responsibility and enhance relations with green thinking customers, suppliers and staff
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No maintenance or insurance costs
We proactively manage the system under a long-term operation and maintenance contract, including the provision of insurance cover, all at no cost to you
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Long-term protection and forecasting
The unit price you pay for electricity generated by the solar PV system will only rise in line with RPI, allowing you to budget more effectively
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Fully transferable
The PPA can be transferred to new occupants of the property should you move to new premises
- If I opt for a PPA, what happens if the solar PV system breaks down or develops a fault?
- Our remote monitoring equipment will alert us to a fault immediately and it is our responsibility to resolve the problem through our long-term operations and maintenance contract. To minimise the risk of any such issues, we only specify and install high quality equipment supported by long term warranties and guarantees.
- If I opt for a PPA, what happens if we move or sell our property?
- If you move or sell your property within the agreed term, the lease of the roof space and the Power Purchase Agreement are transferred to the new building owner and they will then continue to enjoy the benefits of the discounted clean, green electricity the system generates.
- What is the cost of electricity produced by the solar Power Purchase Agreement and does it increase?
- Typically, we are able to achieve savings of 10-20% against a client’s grid electricity tariff. The starting tariff (in pence per kWh) is adjusted annually by reference to Retail Price Index (RPI).
