With a Solar PPA, your organisation could cut costs and carbon without the need for upfront capital.
The pressure to decarbonise and cut costs simultaneously is greater than ever before. Organisations across sectors are looking to act without jeopardising everyday business activity.
To answer this, many are looking to commercial solar power. As energy bills remain volatile, solar allows you to deliver on your net zero goals whilst controlling your long term costs. Solar can also help to improve your brand reputation - and meet your stakeholders' needs - by demonstrating environmental responsibility. But how can you make the switch without straining your finances?
The future low carbon economy relies on steep growth in renewable power. The UK National Grid aims to be capable of operating the world's first carbon-free electricity system by 2025. We’ve already gained a glimpse into what this could look like. In April 2023, renewables made up 46% of monthly electricity generation in the UK, with 6.1% coming from solar.
To complete this journey, more renewable generation is needed. But where will this come from, and how could your organisation be a part of the transition?
One option is to invest in your own onsite solar project. And with a Solar Power Purchase Agreement (PPA), you could do so without the need to divert core business funds.
Capital investment in solar might not be the right choice for your organisation. You may not have funds available for this type of project right now; or you simply may not want the responsibility of solar ownership. But this doesn’t have to preclude you from going solar.
Solar PPAs can offer you the best of both worlds, as they have for many organisations. In the UK, 130MW of generation was secured through PPAs in one week alone in 2021.
With a PPA, you could source 100% of your renewable power whilst helping to fund new generation infrastructure. You’d form a 10–20-year contract with a renewable power generator, which provides a quid pro quo. The generator would gain funding for a bankable project - and you'd improve your cost and carbon performance without responsibility for capital input, ownership, or asset maintenance.
You could invest in solar by choosing an onsite commercial solar Power Purchase Agreement (PPA). These are highly visible solutions, where we design and build a bespoke project on (or close to) your site. This is typically a behind-the-meter solar PPA –with ground or roof mount solar installed on your site, or on adjacent land.
We’d take care of every stage of installing your asset. This includes providing direct long-term funding, which simplifies the development and contractual process as there's no need for additional third-party borrowing. You’d just pay for the electricity generated from the Solar PV array at a fixed, RPI-indexed rate.
We’d also be responsible for all aspects of project development, including planning and connection to the grid. On top of this, our highly-skilled O&M team will ensure that your system runs as effectively as possible throughout its lifetime to maximise cost savings.
Your PPA should be a mutually beneficial partnership. Key deliverables of this kind of project often include:
At Centrica Business Solutions, we delivered our first behind-the-meter solar PPA in 2011. We’ve since delivered many more across the UK, Europe and North America, and are specialists in the market. We can provide end-to-end support to help you deliver on your cost and carbon saving ambitions.
If you’re interested in a PPA, our experts can help. To speak to us about your future plans, complete our simple form and tell us about your goals.
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