Power Purchase Agreements
Get the solar. Without having to buy the solar.
A commercial PPA can allow your business to access on-site renewable electricity while a funding partner provides and owns the solar asset under an agreed long-term structure.
Explore a PPA for your siteSolar as an energy service
Your business needs electricity. It doesn't necessarily need to own the power station.
A Power Purchase Agreement, or PPA, is a long-term commercial agreement for the purchase of electricity generated by an energy asset.
In a solar PPA, a funding partner or asset owner can finance and own the solar installation while the customer purchases electricity generated by the system under agreed contractual terms.
For the right site, this can create a route to on-site renewable generation without requiring the business to fund the entire solar installation upfront.
Funder
Provides or arranges capital for the energy asset.
Solar asset
Installed on the customer's site and generates electricity.
Business
Uses the generated electricity and pays according to the PPA.
How a commercial PPA works
From site assessment to long-term energy supply.
The exact structure varies between projects, but the process typically follows this journey.
We assess your site
We understand your buildings, electricity demand, available roof space, operating profile and energy objectives.
We develop the solar project
The technical design is developed around the site's electricity demand, generation potential and grid requirements.
A funding partner funds the asset
Where suitable, an investor or asset owner provides the capital required to develop and install the solar system.
The solar system generates
The system produces electricity on-site for the business to use, subject to the agreed commercial structure.
You pay for the energy
Instead of purchasing the entire solar asset upfront, the business purchases electricity under the agreed PPA pricing structure.
The asset is operated
The asset owner or appointed operator manages the responsibilities defined within the PPA and operating agreements.
Why businesses consider PPAs
Turn solar from a capital project into an energy strategy.
A PPA can change the way a business approaches renewable generation by separating electricity consumption from asset ownership.
Reduce upfront capital requirements
A PPA can allow a business to access on-site solar without purchasing the entire generation asset upfront.
Potentially improve energy economics
The PPA price can be structured against the expected economics of the project and the customer's electricity requirements.
Asset ownership can sit elsewhere
The funding partner or asset owner can retain ownership of the solar infrastructure during the agreed term.
Operational responsibility
Depending on the contract, the asset owner or operator can manage monitoring, maintenance and other operational responsibilities.
Long-term visibility
A defined PPA structure can provide greater visibility over the price paid for the agreed electricity output.
Solar + storage potential
Where technically and commercially appropriate, battery storage can be considered alongside the solar project.
The responsibility split
Your business operates the site. The asset owner manages the energy infrastructure.
Your business
Your focus stays on your operation.
Funder / asset owner
Responsibilities are defined by the PPA and associated agreements.
The commercial model
Pay for the electricity. Not necessarily the entire asset.
Instead of purchasing the solar installation outright, the customer enters into an agreement to purchase electricity generated by the system.
Illustrative PPA economics
Electricity generated on-site
Generation
Solar
Purchase
PPA rate
Comparison
Grid cost
The financial outcome depends on the agreed PPA price, electricity consumption, generation profile, grid prices, contract term, system performance and other project-specific factors.
Who can consider a PPA?
Particularly interesting for energy-intensive sites and portfolios.
Multi-site opportunities
One strategy across an entire property portfolio.
Landlords, property companies and organisations with multiple sites can potentially assess several buildings together, creating a larger commercial energy opportunity.
Solar + battery
Battery storage can potentially be incorporated into a commercial energy project where it improves the technical or commercial case.
Explore battery flexibilitySolar without operational complexity
A properly structured PPA can place many asset-management responsibilities with the asset owner or operator, allowing your facilities team to focus on the business.
See commercial operationsThe contract defines the details.
PPAs are long-term commercial agreements and should be assessed carefully. Pricing, contract duration, ownership, maintenance, insurance, performance guarantees, metering, site access, termination provisions, change-of-control provisions and end-of-term arrangements should all be clearly defined.
BrightGrid can help develop the technical opportunity and commercial project structure, while the final contractual terms should be reviewed and agreed by the relevant parties and their advisers.
PPA assessment
Let's see whether your site is PPA-ready.
Tell us about your site, electricity consumption, property ownership and objectives. We'll assess the project fundamentals and determine what should happen next.
Site & property
Energy demand
Commercial objectives
Ready when you are
Your roof could become an energy asset.
Let's assess the technical, energy and commercial opportunity for your site.
Explore a PPA