A Solar PPA price is the pence‑per‑kWh you pay for onsite solar electricity generated on your site. Your rate reflects system costs, expected generation, self‑consumption, risk allocation and indexation. Most commercial PPAs are designed to beat your grid tariff with long‑term price visibility. Your exact rate depends on site data — interval demand, roof/electrical constraints and delivery risks.

What is a PPA price?

• A contracted unit price (p/kWh) for solar electricity produced on your site.
• Charged only on metered onsite consumption (exported energy is treated separately).
• Includes design, installation, O&M, monitoring, insurance and lifecycle management delivered by Power‑Zero.

Common price models

• Fixed for the term (simple budgeting).
• Indexed (e.g., CPI/RPI‑linked) with caps/collars.
• Hybrid (part fixed, part indexed) or stepped to match portfolio needs.

What affects your PPA rate? (12 key drivers)

1. System size & economies of scale — larger, standardised systems tend to price keener.
2. Self‑consumption ratio — better daytime match → stronger savings and risk profile.
3. Yield expectation — irradiance, losses, shading, roof tilt/azimuth.
4. Roof & structural factors — access, make‑safe, condition, warranty, ballast vs fixings.
5. Electrical works — board capacity, protection changes, metering, export limiting.
6. DNO process & timelines — notifications/approvals can add cost/risk.
7. Build complexity — H&S/CDM requirements, working at height, live‑site constraints.
8. O&M scope & performance guarantees — availability SLAs and response times.
9. Credit profile & term length — counterparty risk and tenor impact funding cost.
10. Indexation mechanics — CPI/RPI, caps/collars, review triggers.
11. Portfolio structure — single site vs multi‑site standard terms.
12. Market conditions — equipment/funding costs at time of contracting.

What’s included in a Power‑Zero PPA price

• Design, surveys & engineering
• Equipment & installation (incl. inverters, mounting, balance of plant)
• Monitoring, O&M & insurance with performance reporting via the Optimise portal
• Lifecycle maintenance (e.g., inverter replacement allowance)
• Compliance & H&S (RAMS, CDM)

How providers set the price (in plain English)

We model total lifecycle cost (capex + O&M + financing) versus expected onsite consumption of solar generation. The PPA price is set to deliver savings for you, while covering asset costs and risk over the term. The more of your solar you use on site (self‑consume), the sharper the achievable rate.

Data we need for an indicative price (checklist)

• 12 months interval demand data (half‑hourly preferred)
• Latest grid bills & standing charges
• Roof drawings/photos, roof age & any planned works
• Single‑line electrical diagram (if available)
• Operating hours & any process peaks
• Landlord/tenant details (if multi‑let)

Turnaround: Once we have the above, we can typically produce an indicative PPA with rate options and savings view quickly.

FAQs

Is the PPA price fixed for the whole term?
It can be. Some clients choose fixed; others prefer indexed to CPI/RPI with caps/collars. We model both.

Can the price change after installation?
Only according to the contracted indexation mechanism (e.g., annual CPI). There are no surprise add‑ons.

Are REGOs included?
Where applicable, we provide evidence of renewable origin; treatment is contract‑specific.

What happens at end of term?
Options typically include extension, buyout at pre‑agreed value, or removal of the asset.

Both routes can deliver strong returns. PPA preserves cash, shifts performance/O&M risk to a specialist and provides a long‑term hedge. CAPEX can yield higher lifetime savings if you have low cost of capital, strong balance sheet and appetite for owning/maintaining the asset. The best choice depends on your load profile, roof/electrical constraints, cost of capital, risk tolerance and procurement timeline.

Cost components

• CAPEX: Equipment, design, surveys, installation, grid approvals, commissioning.
• Financing: Interest/lease costs; WACC assumptions.
• O&M: Preventive/Corrective maintenance, inverter replacements, cleaning, monitoring, insurance.
• Performance risk: Yield variance, downtime, degradation.
• Decommissioning/End‑of‑life: Removal/disposal or repower options.
• Administrative: Compliance, metering, reporting, H&S

• Design & fund: Power‑Zero engineers size an array for your roof/estate based on load profiles and roof criteria. We fund capex; no upfront cost to you.
• Install & operate: We handle DNO notifications, H&S, CDM, commissioning and ongoing O&M, monitoring and insurance.
• You buy the power: You purchase the onsite generated kWh via the PPA at the agreed rate. When solar output is lower than demand, you still import from your existing supplier as normal.
• Settlement & data: Monthly billing with metered export (if any) and full performance reporting (via the Optimise portal).

Behind‑the‑meter vs offsite: This guide focuses on onsite PPAs (generation connected to your site LV/MV). Offsite/virtual PPAs are financial contracts tied to a remote generator and may involve REGOs and market settlement.

Cashflow comparison

Sensitivities that move ROI most

1. Self‑consumption ratio (match to load).
2. Grid price path (volatility and supplier contract terms).
3. Indexation mechanics (PPA escalators vs fixed).
4. Cost of capital (WACC) if buying outright.
5. System performance (PR, availability, shading).
6. O&M costs (who carries the risk).

Non‑financial considerations

• Speed to impact: PPAs can be faster to approve (opex) vs capex governance cycles.
• Balance sheet: PPA keeps capex off your books; check accounting treatment with advisors.
• Operational focus: Outsource monitoring, maintenance and performance risk under a PPA.
• Flexibility: Buyout and end‑of‑term options; relocation/roof works provisions.
• Reporting: PR/availability and ESG reporting delivered by provider.

When each route tends to win

PPA wins when…

• Capex is constrained or better used in core operations.
• You value a price hedge and risk transfer.
• Multi‑site portfolio roll‑out is planned and speed matters.

CAPEX wins when…

• You have low cost of capital and are comfortable taking performance/O&M risk.
• Long site tenure and strong in‑house FM capability.
• Desire to own the asset and optimise tax allowances directly.

How to compare offers

• Normalise system size (kWp), yield (kWh/kWp) and self‑consumption %.
• Use the same irradiance dataset and loss assumptions.
• Confirm O&M scope, response times and availability guarantees.
• Check indexation clauses, caps/collars and price review triggers.
• Map end‑of‑term options and buyout schedule.
• Ask for lifecycle costs (inverters, replacements).
• Stress‑test grid price scenarios and export limitations.
• Validate roof/structural assumptions and responsibilities.

A Solar Power Purchase Agreement (PPA) lets a business buy clean electricity generated on its site at an agreed pence‑per‑kWh, without paying for the solar system upfront. A specialist funder (like Power‑Zero) designs, installs, owns, operates and maintains the system. You pay only for the energy you actually consume, typically at a long‑term rate designed to beat your grid tariff and reduce Scope 2 emissions. Contracts usually run 10–25 years with options to extend, buyout or remove at term.

How a Solar PPA works (onsite, behind‑the‑meter)

• Design & fund: Power‑Zero engineers size an array for your roof/estate based on load profiles and roof criteria. We fund capex; no upfront cost to you.
• Install & operate: We handle DNO notifications, H&S, CDM, commissioning and ongoing O&M, monitoring and insurance.
• You buy the power: You purchase the onsite generated kWh via the PPA at the agreed rate. When solar output is lower than demand, you still import from your existing supplier as normal.
• Settlement & data: Monthly billing with metered export (if any) and full performance reporting (via the Optimise portal).

Behind‑the‑meter vs offsite: This guide focuses on onsite PPAs (generation connected to your site LV/MV). Offsite/virtual PPAs are financial contracts tied to a remote generator and may involve REGOs and market settlement.

Typical commercial terms

Note: Terms vary by site, size, credit and roof/electrical conditions. Data‑driven proposals beat assumptions.

Is your site eligible? (quick checks)

• Roof area & condition: Sufficient unshaded space; structurally capable; known warranty/age; safe access.
• Load profile: Daytime consumption to absorb generation (warehouses, manufacturing, logistics, retail parks, campuses).
• Electrical setup: Spare capacity on LV/MV boards; known protection settings; metering points; export limiting if required.
• Planning & landlord: Confirm permitted development/planning position; freeholder/tenant consents and wayleaves.
• H&S & ESG: CDM duties, RAMS, method statements, and ESG reporting needs (Scope 2).

Benefits & risks

Benefits

• Capex‑free: Convert capex to an opex/kWh line; preserve cash for core operations.
• Price hedge: Long‑term visibility vs volatile grid tariffs.
• Carbon & compliance: Cuts market‑based Scope 2; supports SBTi/ESG targets.
• Fully managed: Design, install, O&M, monitoring handled by specialists.

Risks / considerations

• Contract commitment: Long‑term agreement; consider site tenure and strategy.
• Operational access: Roof access for O&M and periodic works.
• Indexation: Understand index linkages; compare like‑for‑like to grid alternatives.
• Grid/roof constraints: May cap system size; export limits can apply.

FAQs

Is a Solar PPA a lease?
No. A PPA is a contract to buy energy (kWh); the provider owns and maintains the equipment.

Who owns the panels?
Power‑Zero (or funder) owns the system during the term; transfer/buyout provisions are typically available.

How long does a PPA last?
Commonly 10–25 years, with options at end‑of‑term to extend, buy or remove.

Can we buy the system later?
Yes, many PPAs include pre‑agreed buyout schedules tied to remaining asset value.

What if we relocate or close the site?
Change‑of‑control/assignment provisions are addressed in the contract; discuss scenarios during negotiation.