Across the UK a growing number of businesses and public sector organisations are making a strategic shift in how they buy electricity. Instead of relying purely on traditional grid supply many are now choosing Corporate Power Purchase Agreements also known as CPPAs to power their operations with long term renewable energy.
This is not just a trend for large multinationals. Medium sized manufacturers leisure groups retailers logistics firms and even town councils are now moving towards CPPAs and rooftop solar PPAs as a practical business decision.
The motivation is clear. CPPAs offer cost stability energy security and genuine progress towards net zero targets at a time when energy prices remain unpredictable.
What is a CPPA?
A Corporate Power Purchase Agreement is a long term contract between an organisation and a renewable energy generator. Under the agreement the organisation commits to purchasing renewable electricity for a fixed period usually between 10 and 25 years. This power can come from a dedicated solar or wind project off site or from solar installation directly on your own roof under a PPA structure. Here at Sunpower Services we specialise in roof solar setups or ground mounted.
For on site solar PPAs the generator funds installs and maintains the system while the business buys the power it produces at a lower and more stable rate than grid electricity. There is typically no upfront capital required which makes this model particularly attractive for medium sized businesses.
Why UK organisations are making the switch
The main reason businesses are moving towards CPPAs is financial stability. Over recent years energy markets have shown just how volatile they can be. By locking into a long term renewable energy agreement organisations gain protection from unpredictable price spikes and can plan their operating costs with much greater certainty.
There are also very real sustainability benefits. CPPAs allow organisations to claim genuine renewable electricity that is directly linked to new generation projects. This helps with reducing scope 2 emissions and supports credible net zero strategies. For companies wanting to demonstrate leadership in sustainability this is far stronger than simply buying generic green tariffs.
Another key driver is risk reduction. Many CPPA and rooftop PPA models remove capital investment from the business. This means no impact on cash flow or borrowing and no technology risk. The solar or renewable asset is funded installed and maintained by the provider. The business simply consumes the clean electricity.
There are also reputational benefits. Customers investors and stakeholders increasingly want to see real action not just sustainability statements. A CPPA provides a clear transparent and measurable solution that shows long term commitment to decarbonisation.
Not just large corporations
While big names are often highlighted it is important to recognise that medium sized businesses and smaller public sector organisations are now taking part.
For example Swanley Town Council has taken steps to integrate solar power into its local facilities including developments at Swanley Park as part of its sustainability and energy strategy. This shows that CPPAs and similar models are not just for large cities or global corporates. Local councils are also seeing the value in stabilising energy costs while cutting carbon emissions.
Across the country medium sized UK businesses including manufacturers hospitality and leisure groups food companies and logistics operators have all signed long term agreements for either rooftop solar or off site renewable power through corporate PPA style arrangements. They are doing this to reduce exposure to energy market volatility and to strengthen their environmental credentials without heavy capital investment.
The UK corporate renewable market is maturing rapidly and more organisations are realising that this type of agreement is no longer complex or reserved for energy experts. It has become accessible structured and commercially viable for a much wider range of businesses.
Rooftop solar PPAs for medium businesses
Rooftop solar PPAs are proving especially popular for medium sized UK businesses with suitable roof space. Factories warehouses retail units distribution centres and leisure facilities are all ideal candidates.
Under this model solar panels are installed on your roof at no capital cost to your business. You simply purchase the power they generate at an agreed rate for a long term period. Because the electricity is generated on site it also reduces your reliance on grid energy helping protect your business during times of supply stress and grid instability.
This model has been successfully adopted by multiple UK businesses across manufacturing food production leisure and retail sectors and it is now seen as one of the most practical and cost effective ways for mid sized organisations to start their CPPA journey.
A business leader perspective
Duncan Bannatyne put it simply when commenting on his company’s move towards rooftop solar. He said “We’re committed to reducing our carbon footprint and being at the forefront of environmental responsibility.”
That mindset reflects what many UK business owners now realise. Sustainability is no longer purely about environmental values. It is a commercial decision that strengthens the business model protects against future risk and improves brand reputation.
Who is doing it
Across the UK CPPAs are now being used by national retailers telecom groups food manufacturers manufacturing companies logistics operators leisure chains property managers and local authorities.
Swanley Town Council is an example of a town council taking steps in this direction with renewable energy installations supporting lower emissions and long term cost control.
Alongside councils many medium sized businesses in sectors such as food manufacturing fitness and leisure distribution and hospitality have adopted rooftop solar PPAs or corporate renewable agreements to power their operations more sustainably.
The key point is that this is no longer limited to global corporations. UK medium businesses are now actively working towards long term renewable supply through structured CPPA arrangements that support both commercial growth and environmental goals.
Why now is the right time
The UK energy landscape is evolving. Support frameworks are improving. Renewable infrastructure is scaling up. And more expertise is available than ever before to guide businesses through the process.
By moving early organisations can secure favourable long term pricing positions reduce carbon emissions substantially and strengthen their resilience against an uncertain energy future.
CPPAs offer a way to take control of your energy strategy rather than reacting to market volatility year by year.
From town councils like Swanley to medium sized UK manufacturers and national operators the message is clear. Corporate Power Purchase Agreements are becoming a core part of how organisations think about energy procurement.
They provide stability sustainability and strategic advantage. They are no longer complicated unreachable solutions. They are practical commercial tools that forward thinking businesses are already using.
If your organisation is considering how to reduce energy costs secure long term pricing and accelerate progress toward net zero then a CPPA or rooftop solar PPA could be one of the most effective steps you take this year.
All information correct at the time of publishing on 3rd December 2025.