A solar PPA (power purchase agreement) lets a business get solar on its roof or land with no upfront cost. A funder pays for, owns and looks after the system. You buy the power it makes at a fixed price, usually lower than you pay for grid electricity.

How it works

  1. A funder pays for the system. They design, install, own and maintain the solar on your roof or land.
  2. You buy the power. You pay an agreed price per unit (kWh) for the electricity you use from it. The price is fixed, often with a small agreed yearly rise.
  3. You still have the grid. When the sun isn’t shining, or you need more, you buy from your normal supplier as usual.

How long does it last?

Typically 10 to 25 years, most often 15 to 25. At the end you can usually:

  • extend the agreement,
  • buy the system, or
  • have it removed.

Some agreements hand the system over to you at the end.

Who maintains it?

The funder owns the system, so they normally look after it: maintenance, insurance and monitoring are part of the deal.

Is my business a good fit?

A PPA usually suits a business that has:

  • high daytime electricity use, all year round,
  • enough space: roughly 1 square metre of roof per kilowatt, or around 1.6 hectares of land per megawatt,
  • a long-term site: if you lease your premises, you will usually need around 10 years or more left and your landlord’s consent,
  • good credit, because the funder is relying on you for many years.

Larger systems (1 megawatt and above) need planning permission, and every system needs a suitable grid connection.

Things to check

  • The length of the commitment. It’s a long contract.
  • What happens if you move or sell the business. Look for a clear buyout price.
  • Roof condition. Fixing a roof under panels is harder, so check it first. The roof must be made good at the end.

Other kinds of PPA

  • On-site PPA: the solar is on or next to your site, as described above.
  • Sleeved PPA: the power comes from a solar farm elsewhere, through the grid, with a licensed supplier handling it.
  • Virtual (synthetic) PPA: a financial contract at an agreed price, with no physical power delivered. Usually for large companies.

If a solar farm can be built right next to your site, private wire may also be an option.

What we do

We look at your bills, your roof or land and the local grid, and set out the options that suit you in plain English, including PPAs through our funding partners. Get a quote →

Sources

Correct at the time of writing (1 October 2026). This is general guidance, not legal advice.