We have seen first-hand how businesses across the UK are transforming their energy strategies through PPA solar purchase agreements. With over 50 years of combined expertise in renewables, and a track record of building multi-million-pound solar PPA projects, we know that one of the most common questions businesses ask is “How can we benefit from solar without the significant upfront capital outlay?”
The answer lies in a Power Purchase Agreement (PPA), which provides a straightforward and cost-effective way to access renewable energy while protecting working capital. This approach has become increasingly popular with large energy users who want to reduce bills, shield themselves from energy price volatility, and progress towards net-zero targets.
What is a PPA solar purchase?
A PPA solar purchase is a contractual agreement between your business and a renewable energy partner which designs, funds, installs and maintains a solar system on your premises, whether that’s on the roof of your commercial building, a ground-mounted system, or a solar carport Instead of purchasing the solar panels outright, your business simply agrees to buy the electricity the system generates at a fixed, pre-agreed rate. This rate is significantly lower than your current grid electricity price, giving you immediate savings without spending a penny on the system itself. In short, your business gets the benefits of solar energy without the upfront costs or the burden of ownership.
How does a PPA work in practice?
The process of a PPA solar purchase is refreshingly simple:
- Initial assessment: We evaluate your site, energy usage, and long-term sustainability objectives.
- System design and agreement: Harvest Green Developments designs a bespoke solar system to meet your energy needs and any building or insurance regulations whilst exceeding health and safety standards. The PPA sets out the electricity rate, the contract length (usually 25 years), and the terms of supply.
- Installation and commissioning: We cover the full cost of equipment, installation, and connection. Our experienced projects team deliver a safe, efficient installation with little to no disruption to your operations.
- Operation and maintenance: We remain responsible for system ownership, monitoring, and ongoing maintenance. This ensures optimal performance throughout the life of the agreement.
- Business benefits: You purchase the clean electricity generated on-site at the agreed PPA rate, which is much lower than the market price. When solar output is lower (for example at night), your business continues to draw from the grid as usual.
The financial advantages of a PPA solar purchase
The primary benefit of a PPA is capital preservation. Solar systems represent a significant investment depending on the size of the installation. By choosing a PPA, your business avoids this upfront cost while still accessing all the benefits.
Other financial advantages include:
- Lower energy bills: PPA rates are significantly cheaper than grid electricity. Even with annual indexation, businesses enjoy predictable savings throughout the contract term.
- Budget certainty: A fixed or indexed rate provides a hedge against volatile energy markets. This allows finance teams to forecast energy costs with confidence.
- No hidden costs: All operation, maintenance, and performance monitoring are handled for you for peace of mind. There are no surprise repair or replacement expenses.
- Off-balance sheet treatment: In many cases, a PPA is treated off balance sheet, meaning it does not tie up capital or affect borrowing capacity.
Operational and strategic benefits
A PPA solar purchase does more than reduce costs. It also delivers operational value:
- Sustainability gains: Switching to renewable energy reduces carbon emissions and strengthens your ESG profile. This matters not only to regulators, but also to customers, employees, and investors.
- Business reputation: Adopting solar demonstrates proactive leadership in sustainability. Many of our clients find that this differentiates them within their industry.
- Flexibility at end of term: When your PPA comes to an end, you typically have the option to extend the agreement, purchase the system outright at a fair market value, or request removal. This flexibility allows you to make decisions based on your future energy strategy at that time.
Why PPA solar purchase is popular among UK businesses
Energy costs have become one of the most significant operating expenses for large commercial and industrial organisations. Recent years have highlighted how volatile and unpredictable the energy market can be. Businesses that had secured PPAs years ago were able to ride out spikes in grid prices with little impact. At the same time, corporate responsibility and sustainability goals are higher on the agenda than ever before. From supply chain expectations to stakeholder scrutiny, businesses are under increasing pressure to demonstrate measurable reductions in carbon emissions. A PPA solar purchase meets both financial and sustainability needs in one solution: lower, predictable energy bills and a clear pathway to achieving net-zero ambitions.
Case experience from Harvest Green Developments
At Harvest Green Developments, we have delivered several multi-million-pound PPA projects for some of the UK’s leading brands. See a case study video below on how we supported Cromwell with their renewable energy strategy via a funded PPA:
Common questions about PPA solar purchase
1. Is there a catch with PPAs?
No. The model works because the provider invests in the system and recovers the cost by selling electricity over the term. Both parties benefit: you save money, and the provider earns a return.
2. What if my business uses less power than expected?
Most PPAs include a minimum consumption requirement. This ensures the system is used effectively. However, our designs are based on detailed assessments of your actual energy needs, ensuring the system is the right fit.
3. Do PPAs restrict future flexibility?
No. A PPA is structured to give you end-of-term options, including taking ownership of the system or continuing the agreement.
4. Is maintenance included?
Yes. We handle all maintenance, insurance, and performance monitoring throughout the life of the PPA so you don’t have to.
Taking the next step
A PPA solar purchase is one of the most accessible and financially sound ways for businesses to transition to renewable energy and is growing immensely in popularity with more businesses keen to deploy sustainability methods as soon as possible. With no upfront costs, predictable savings, and clear sustainability benefits, it has become the preferred route for many UK companies seeking to secure their energy future. As a business, we specialise in helping other organisations unlock this opportunity with tailored, high-quality solar solutions. If you are looking to protect your capital while reducing costs and driving sustainability, now is the perfect time to explore a solar PPA.
Contact our team today to discuss how a PPA solar purchase can work for your business.
