As the UK accelerates its transition to a low-carbon economy, more businesses are seeking ways to decarbonise their operations, cut energy costs, and show leadership on climate action. One increasingly popular solution is the Corporate Power Purchase Agreement, or CPPA.
Whether you’re an energy manager, procurement lead or business owner, understanding how CPPAs work – and how they could benefit your business in 2025 – is more important than ever.
What is a CPPA?
A Corporate Power Purchase Agreement is a long-term contract between a business and a renewable energy generator to buy electricity directly. Rather than relying solely on the open market or traditional utility suppliers, a CPPA enables your organisation to secure a stable, often lower-cost energy price over a fixed term – typically 10 to 25 years.
And here’s the exciting part: if you own or lease a warehouse, shed, or business premises with space for solar panels, there’s a strong chance you could host the renewable generation on-site. That means we can work together to explore whether your property is suitable for a CPPA-backed solar project.
If this sounds like something your business could benefit from, get in touch with us at Sunpower Services – we’re actively looking to partner with businesses across the UK.
Why Are CPPAs So Relevant in 2025?
Several factors make CPPAs a particularly timely opportunity this year:
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Energy price volatility: The UK energy market remains unpredictable. CPPAs can offer long-term price certainty and budget stability. We also guarantee at Sunpower services to be at least 10% less than the current commercial rate.
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Net Zero and ESG goals: Many businesses have set climate targets. A CPPA is a credible, tangible step towards meeting them.
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Growing demand for transparency: Investors, regulators and customers are demanding clearer proof of sustainability commitments. CPPAs provide real data and traceability.
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Support for new renewables: Your agreement can directly enable more renewable energy to be developed and added to the grid.
CPPA Models Explained
Depending on your business structure, energy use, and site setup, a CPPA can take several forms:
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Sleeved CPPA – Your electricity is routed from the generator through a licensed supplier to your business.
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Virtual CPPA – Also known as a financial CPPA, this is a purely financial agreement where you hedge electricity prices and claim renewable credentials, even if the power isn’t physically supplied to your site.
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On-site generation –This is where Sunpower Services can really help. If you have roof or land space suitable for solar panels, we can assess your site and potentially structure a CPPA where the generation happens on your own premises.
Benefits of a CPPA
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Cost control – Fix energy prices and reduce exposure to wholesale market volatility.
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Carbon reduction – Replace grid electricity with clean, renewable power and cut Scope 2 emissions.
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Reputation and compliance – Demonstrate serious climate commitment to stakeholders and regulators.
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Support the green transition – Play an active role in expanding the UK’s renewable energy capacity.
Key Considerations Before You Begin
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Contract length: CPPAs are long-term commitments. Consider whether your business can support a 10-25 year agreement.
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Energy usage: You’ll need a clear picture of your expected energy consumption over the contract period.
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Cross-departmental involvement: Finance, legal, operations and procurement teams should all be engaged early in the process.
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Expert support: These are complex agreements. Partnering with an experienced advisor like Sunpower Services can help avoid costly pitfalls.
How Sunpower Services Can Help
At Sunpower Services, we specialise in helping UK businesses explore and implement Corporate Power Purchase Agreements. We assess feasibility, structure the right type of deal, and manage everything from initial planning through to performance monitoring once the agreement is in place.
If you have a roof, shed or land with potential for solar, we’ll assess your eligibility and work with you to unlock the benefits of clean, on-site energy. It’s a win-win – for your business, your budget, and the planet.
Let’s Work Together
CPPAs represent one of the most effective ways for businesses to take control of their energy use and make measurable progress on sustainability.
If you’re curious about whether your business premises could be used for a CPPA solar project, get in touch with us at Sunpower Services. We’re always happy to discuss options, assess suitability, and explore how we can work together to power your business with renewable energy.
Information correct as of 15th May 2025.