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