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Power Purchase Agreement (PPA) UK

If you’re interested in procuring renewable energy for your business a Power Purchase Agreement (PPA) UK could be the solution you’re looking for. In this short guide, we’ll explore everything you need to know about PPAs, including Solar PPAs, Virtual PPAs, and how they can help you save money on business energy bills.

The UK has receives more than sufficient solar irradiation across the entire country to make photovoltaics in any region of the UK a highly effective source of renewable energy.

What is a Power Purchase Agreement (PPA)?

A Power Purchase Agreement (PPA) is a contractual arrangement between an energy buyer (a business owner or tenant) and an energy provider (often a renewable energy developer). In a PPA, the buyer agrees to purchase electricity generated by renewable sources, such as solar or wind, at an agreed rate over a specified time period.

Solar Power Purchase Agreement (Solar PPA):

A Solar Power Purchase Agreement (Solar PPA) specifically involves the purchase of solar energy generated by photovoltaic (PV) panels. Solar PPAs offer businesses a cost-effective way to access clean, renewable energy without the need for upfront capital investment in solar infrastructure, because the renewable energy developer will cover the costs of installing the PV panels. If you have space available for roof mounted solar, a solar carport above a car park, or unused land near your business premises for ground mounted solar, a solar power purchase agreement is an extremely effective way to reduce your energy bills. 

Virtual Power Purchase Agreement (Virtual PPA):

A Virtual Power Purchase Agreement (Virtual PPA) allows businesses to procure renewable energy from offsite projects, which are located in regions with optimal renewable energy resources. Virtual PPAs enable businesses to support renewable energy development and reduce their carbon footprint without having the renewable energy infrastructure installed on or around their premises. Virtual PPAs are most suited to businesses without sufficient land or roof space to have their own solar panels installed.

Key Benefits of PPAs:

• Cost Savings:
  PPAs provide significant long-term cost savings compared to traditional utility electricity rates.
• Renewable Energy Procurement:
  PPAs support the growth of renewable energy sources and help businesses achieve their sustainability goals.
• Price Stability:
  PPAs offer price stability by locking in electricity rates for the duration of the agreement, providing budget certainty for energy costs.

Why Choose a PPA for Your Business?

Whether you’re a small business or a large corporation, choosing a PPA can offer numerous benefits. By procuring renewable energy through a PPA, your business can reduce its environmental impact, enhance its brand reputation, and contribute to a more sustainable future.

Conclusion:

Power Purchase Agreements (PPAs) are one of the most cost effective tools for businesses seeking to transition to renewable energy, reduce their carbon footprint and save money at the same time. Fully funded PPAs, which do not require investing any capital, provide a proven way for businesses to increase profitability and energy security whilst protecting themselves against energy price rises.

For more information about Power Purchase Agreements (PPAs) and renewable energy solutions in the UK, contact Footprint Zero today. We will guide you through the available PPA options to help your business transition to clean, sustainable energy and reduce your energy bills.