Businesses across the UK are looking for practical ways to reduce their carbon emissions while managing rising energy costs. One option that can help businesses generate cleaner electricity without the need for a large upfront investment is a Solar Power Purchase Agreement (PPA).
A Solar PPA allows a business to benefit from solar-generated electricity without necessarily having to purchase and install the solar PV system itself. Depending on the agreement, solar panels can be installed on your business premises, with the electricity generated supplied to your business at an agreed rate.
This can help reduce reliance on grid electricity, lower your carbon footprint and support your business’s wider sustainability goals.
What is a Solar PPA?
A Solar PPA is a long-term agreement between a business and a solar provider. The solar provider typically arranges the financing, installation and maintenance of the solar PV system, while the business purchases the electricity generated by the system.
This approach can make commercial solar more accessible to businesses that want to move towards renewable energy without taking on the full upfront cost of purchasing a solar installation.
The exact terms of a PPA will vary depending on the project, site and agreement.
How Can a Solar PPA Reduce Your Carbon Footprint?
1. Generate Renewable Electricity On Site
Solar panels generate electricity from sunlight rather than fossil fuels. By generating renewable electricity directly at your business premises, you can reduce the amount of electricity your business needs to draw from the grid.
This can help reduce the carbon emissions associated with your electricity consumption.
2. Reduce Reliance on Grid Electricity
The electricity grid includes power generated from a mixture of sources. By using solar power generated on your own premises, your business can reduce its reliance on electricity supplied through the grid.
For businesses with significant daytime electricity consumption, this can make on-site solar particularly valuable.
3. Support Your Business’s Sustainability Goals
Reducing carbon emissions is increasingly important for businesses, particularly those with environmental targets, sustainability commitments or supply-chain requirements.
Installing solar through a PPA can be one practical way to demonstrate action towards reducing your business’s carbon footprint.
4. Make Better Use of Your Available Roof Space
Large commercial and industrial buildings often have significant areas of unused roof space.
Subject to a suitable survey, these roofs can potentially be used to install solar panels and generate renewable electricity where it is consumed.
Is Your Business Suitable for a Solar PPA?
Before proceeding with a commercial solar project, the suitability of your building and electricity supply needs to be assessed.
At Sunpower Services, we look at a range of factors to determine whether a site could be suitable for solar.
Solar Panel Site Suitability
Your property should generally meet the following requirements:
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Solid roof construction, such as profile metal cladding
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More than 20 years of remaining roof life
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A roof that is broadly south-facing, with south-east to south-west orientations generally acceptable
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No or minimal roof protrusions, such as chimneys, flues or ducts
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No or minimal shading, including shading from trees or tall surrounding buildings
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The property must be located in England or Wales
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The property must not be a listed building
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The property must not be located in a conservation area
There are also some additional requirements to consider:
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Your business must have control over the ability to install solar panels on the roof. For example, you may own the building or have a long lease that includes the outside shell of the building.
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Your business should have a reasonable electricity supply already connected to the building. Ideally, this should be a minimum of 100 amps, three-phase.
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Your business should not already have solar panels connected to the same electricity supply.
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A minimum contract period of 10 years is required. Generally, the longer the contract period, the cheaper the electricity can be.
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There needs to be a small amount of suitable wall space inside the building for wall-mounted inverters. Ideally, this should not be in a dusty or contaminated area.
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Ideally, there should be no roof lights, or roof lights should cover no more than approximately 20% of the roof area.
Meeting these criteria does not guarantee that a property will be suitable for a Solar PPA. A full assessment will be required before a project can proceed.
Could Your Business Benefit From Solar Through a PPA?
If your business has a suitable commercial or industrial property, significant electricity consumption and a suitable roof, a Solar PPA could be worth exploring.
Generating renewable electricity on site can help your business reduce its reliance on grid electricity while supporting your carbon reduction and sustainability objectives.
The first step is to find out whether your property could be suitable.
Find Out If Your Business Could Be Eligible for Solar
To find out whether your business could be eligible for solar through Sunpower Services, complete the contact form on our website and a member of our team can discuss your requirements.
Alternatively, you can:
Email: mail@sunpowerservices.co.uk
Call: 01634 295354
Our team can assess your requirements and advise whether your property could be suitable for a commercial solar PPA.