A solar power purchase agreement (PPA) is a financial agreement that allows businesses to use commercial solar energy without paying any upfront costs.
The freeholder benefits from access to lower-cost renewable energy through an agreed PPA tariff, with the opportunity to resell the energy to tenants at a competitive rate while still generating additional income. With the tariff fixed and only increasing in line with RPI inflation, the scheme provides long-term price stability, protection against volatile energy markets, and a smarter, more sustainable energy solution for everyone involved.
For owner-occupiers, a Power Purchase Agreement (PPA) offers a simple and cost-effective way to benefit from solar energy without the need for any upfront capital investment. Your business only pays for the electricity the system generates – typically at a rate significantly lower than your current energy supplier – helping to reduce operating costs from day one. With installation, monitoring, and maintenance all included, a PPA allows businesses to enjoy the financial and environmental benefits of solar while preserving capital for other areas of growth.
Provide information about your business, site, and electricity usage so we can evaluate your current costs and identify potential savings.
We assess your energy profile and design a bespoke solar PPA plan, outlining projected savings, system size, and a fixed energy rate.
Once you’re happy to proceed, our expert team takes care of design, funding, installation, and ongoing maintenance—no upfront cost to you.
Your system goes live and you begin purchasing lower-cost solar power immediately, reducing bills and cutting carbon from day one.
No capital outlay, no maintenance headaches—just clean, reliable energy that strengthens your bottom line and future-proofs your business.
Government data shows that average industrial electricity prices are increasing by approximately 5.04% per year. In comparison, a solar Power Purchase Agreement (PPA) increases annually only in line with the Retail Price Index (RPI) or 2.9% — whichever is higher. However, historical trends over the past 10 years indicate that energy prices have actually risen by an average of 10–11% annually.
With no upfront investment or ongoing maintenance costs, a solar PPA allows your business to start saving from day one, with continued savings throughout the agreed contract term. At the end of the agreement, ownership of the solar system transfers to your business, enabling you to benefit from free solar-generated electricity for the remainder of the system’s lifespan.
Your commercial solar PV system is entirely funded by us so you start saving from day one
Solar electricity is purchased at a much cheaper rate than is available from your current energy provider
Improve your company’s environmental responsibility and enhance relations with green thinking customers, suppliers and staff
We proactively manage the system under a long-term operation and maintenance contract, including the provision of insurance cover, all at no cost to you
The unit price you pay for electricity generated by the solar PV system will only rise in line with RPI, allowing you to budget more effectively
The PPA can be transferred to new occupants of the property should you move to new premises
Solar Power Purchase Agreements (PPAs) are becoming increasingly popular amongst businesses across the UK as a cost-effective way to access renewable energy without the need for upfront capital investment.
Many well-known companies are now choosing solar PPAs to help meet their energy requirements, particularly businesses with high electricity consumption. PPAs are especially beneficial for:
Ideal for organisations owning buildings or holding long-term leases with substantial, unused roof space. It allows high-consumption businesses to unlock solar potential and secure predictable, reduced energy costs without upfront capital.
A low-risk solution for companies operating across multiple locations. Businesses can trial solar technology at a single site before scaling the cost-saving and environmental benefits company-wide, completely avoiding installation costs.
A win-win solution offering long-term certainty by aligning the PPA with the lease duration. Tenants enjoy cheaper, greener electricity with zero maintenance, while landlords turn unused roof space into a reliable revenue stream.
Purchasing a commercial solar system outright can deliver an excellent long-term return on investment, with many systems paying for themselves within a relatively short timeframe through reduced electricity costs. Once the initial investment has been recovered, the electricity generated is effectively free, helping businesses significantly lower operational overheads and improve profitability for decades to come.
In addition to ongoing energy savings, solar installations can enhance the value and appeal of commercial properties by improving energy efficiency and strengthening sustainability credentials — factors that are increasingly important to investors, tenants, and customers alike.
Businesses may also benefit from available tax incentives and capital allowances, allowing a portion of the installation cost to be offset against taxable profits, further improving the financial performance of the investment. For companies with available capital, investing in solar can often provide a stronger and more stable return than
leaving funds idle or exposed to inflation, while simultaneously reducing future energy expenditure and increasing
energy independence.
At Southern Smart Energy, we work closely with our clients to deliver a smooth transition to sustainable energy solutions while helping them achieve the best possible value and long-term savings. For companies looking to make a long-term investment in their premises and energy strategy, purchasing a solar system outright offers simplicity, control, and lasting value. It can help you maximise the long-term savings solar can deliver.
Keep your cash, let the roof pay the repayments through longterm energy savings.
Funding rates tailored to your credit profile
Gold
Silver
Bronze
3.90 %
5.49 %
8.99 %
Provide information about your business, site, and electricity usage so we can evaluate your current costs and identify potential savings.
We assess your energy profile and design a bespoke solar PPA plan, outlining projected savings, system size, and a fixed energy rate.
Once you’re happy to proceed, our expert team takes care of design, funding, installation, and ongoing maintenance—no upfront cost to you.
Your system goes live and you begin purchasing lower-cost solar power immediately, reducing bills and cutting carbon from day one.
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