Power Purchase Agreement
EvoEnergy partner with some of the best energy efficiency asset investors in the UK that can offer you a free, fully maintained solar PV system through an attractive power purchase agreement for 20 to 40 years. During this term, electricity generated by the PV system is purchased from the investor at a cheaper rate than your existing energy supplier – with better price inflation than the energy market – saving you thousands of pounds every year and giving you long term control over your P&L costs.
What is a power purchase agreement?
A power purchase agreement (PPA) is a popular ‘free solar’ proposition that offers credible companies long term financial, accounting and eco benefits. It involves two parties with one business generating the solar energy and the other purchasing business purchasing it. A PPA also satisfies companies that prefer to use external investors to leverage the benefits of solar energy whilst they reinvest their own funds into core business activities.
Free solar and long term cheaper electricity
Utilising our direct relationships with various energy efficiency asset investment partners, if your business satisfies a range of criteria (see below), one of our investors will provide you with a free, fully maintained solar PV system – designed and installed by EvoEnergy – in return for a fixed-term lease or license of your roof and airspace above your premises.
A competitive PPA price (per unit of electricity) will also be offered that is cheaper than your existing energy provider and linked to an inflation rate that is lower than the energy market, saving you tens of thousands of pounds every year for the duration of the PPA and giving your finance team the much-desired ability to forecast electricity costs over the long term.
Solar PPA rates: No upfront costs or ongoing fees
No upfront costs or ongoing service fees apply, meaning that you begin to make savings from day one and continue to benefit for the full term of the PPA, usually for a minimum of 20 years. At the end of the term, it is common practice that the PV system will be gifted to you for a peppercorn fee (£1).
Benefits of a PPA
A PPA makes perfect business sense and is set up to mutually benefit both you and the investor;
- Free solar PV system | the system is fully funded by a reputable third party asset investor
- Guaranteed savings on energy bills | electricity generated by your PV system is purchased back off the investor at a rate cheaper than your current energy provider linked to inflation better than the energy market
- No maintenance costs | as part of the agreement, your system will have an ongoing operation and maintenance contract at no cost to yourself
- Long term budget control | the unit price you pay for electricity generated by the system will be fixed for the term of the agreement, allowing you to budget better for the future
- Fully transferable | the PPA contract can be transferred to the new occupants should you move to new premises in the future
- Zero cost ‘green’ credentials | a zero cost route to improving your company’s CSR, enhancing relations with eco-conscious suppliers & customers
Do you qualify for a solar power purchase agreement?
One team will conduct a detailed analysis of your roof size, type, orientation and pitch in addition to assessing your current electricity infrastructure, usage and bills to ensure you are a suitable candidate for a PPA.
In addition, for a PPA to be considered, your roof needs to have enough space for a minimum system size of 50 kWp (approx. 200 panels) that is not affected by shading. It is also useful that your building has a half-hourly electricity metre and an Energy Performance Certificate (EPC).
The asset investor will also be looking to minimise risk on their part, which will require you to provide evidence of long-term stability (i.e. financial accounts) and, if you don’t own the building, any rental agreements that give the investor confidence that you won’t be vacating the property during the PPA term.
Get in contact with us today to discuss your suitability and potential savings.
PPA case studies
In 2014, we designed and installed a 3 MWp rooftop PV system for BMW (image above, right) at their Mini manufacturing plant in Oxfordshire. Guinness Asset Management financed the install through a 20 year PPA deal, saving the client thousands of pounds every year in electricity costs.
In 2015, Lyreco (image at top of page) – the Global workplace and office solutions provider – installed a fully funded 3.811 MWp system on their distribution site in Telford, which became the UK’s 4th largest rooftop solar PV installation. The 20 year PPA deal with Guinness Asset Management will reduce their annual electricity spend by over £53,000 whilst also making the site carbon-neutral.