A Complete Guide to Power Purchase Agreements
Businesses are being encouraged to turn to reusable energy, not just by the government but by their customers, as we all become more eco-conscious. As the benefits of commercial solar panels go beyond saving your business money, they are a popular solution. But they can be expensive. This is why Power Purchase Agreements (PPA) are becoming a popular financing option. But what is a PPA?
PPAs are an agreement between a solar panel installation company and a business that allows you (the business) to use clean, renewable energy without the upfront expense of the installation.
At ProStar Energy, we are proud to offer these agreements across a range of sectors to help any business embrace renewable alternatives without the worry of costs. In this blog, we explain everything you need to know, answering the most common question “what is a PPA?”
What Is A PPA?
A power purchase agreement is when a solar panel company, such as us, rents roof space or land from your business to install a solar panel system.
You will enter an agreement with the company to purchase the energy generated from the system at a discounted rate, meaning you benefit from the solar power generated without paying the upfront installation costs.
The agreed rate will stay at a fixed price for a certain time. At the end of that period, you can either purchase the system from us or sign a new agreement.
Benefits of PPAs for Commercial Solar Energy
As you can imagine, there are several benefits of a PPA for a business.
- No upfront costs - utilise clean energy without paying a lump sum upfront
- Lower energy bills - rely on your own energy and reduce the amount you use from the National Grid to lower energy bills
- Predictable energy prices - with the fixed rate, you can budget with confidence that your energy prices aren’t going to increase
- Stable energy source - continue operations when the National Grid has power outages with solar energy storage systems
- Reduce carbon footprint - reduce reliance on fossil fuels for your energy, meaning you decrease carbon emissions for your business
- Meet sustainability goals - reducing carbon footprint and moving towards renewable energy increases sustainability for your business
- Professional maintenance - maintenance and repair will be the responsibility of the company you have the agreement with, so you can focus time and energy on running your business
How PPAs Work: A Step-by-Step Guide
Installing solar panels with a PPA agreement is simple and detail-oriented.
The first stage after your enquiry will be an initial consultation and site visit, where we will discuss your operation and energy needs, as well as your land or roof space.
From there, our team will put together a proposal for a solar panel system, designing a bespoke solution that will meet your requirements. Along with this proposal, we will also draw up an agreement that specifies the discounted rate and terms of the agreement.
Once you are happy with the system and agreement, our commercial solar panel installers will fit the system. Our installation process is a comprehensive service which includes getting required compliance and standards certificates and providing a detailed handover to anyone who will be monitoring the system on a day-to-day basis.
We will provide a maintenance package as part of the agreement, meaning going forward, we will complete annual services and repairs on the system to make sure it performs at optimal levels and as efficiently as possible.
Why Choose A PPA for Your Business?
Alongside the benefits of a PPA, there are a number of reasons why you should choose a PPA to fund your solar panel installation.
- Cost savings - you won’t have to pay a large amount of money upfront and will save money on your energy bills
- Enhancing corporate sustainability - your business will become sustainable, helping you meet sustainability goals and encouraging others in your sector to do the same
- Energy independence and reliance - no longer relying on the National Grid means you will have a stable energy source that you can rely on even during power outages.
Learn More From Our Experts
Interested in learning more about a power purchase agreement for your business? Speak to our experts today.
We are specialists in commercial solar panel installations, meaning we understand your unique needs and will be able to provide solutions, advice and guidance tailored to your operations and energy needs. We are always on hand to answer any questions about what a PPA is and how it works.
Call us today on 0331 6302225 or complete our online contact form to request a callback to discuss a PPA for your business.
