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We have compiled a list of FAQs based on question's asked from our customers.

If you have a question which isn't listed here please get in touch and we will be happy to address any question you have.  Use our contact form to get in touch today 

What is a power purchase agreement (PPA)?

A solar PPA is a financial arrangement that allows businesses, government agencies, and educational institutions to purchase solar electricity with zero upfront capital cost. You rent the roof space on your business premises (or adjacent land) and buy the solar electricity rather than investing in a solar Photovoltaic (PV system of your own.

The PPA offers an effective means to reaping the benefits of solar PV without having to take on the responsibilities of owning the system yourself.

How does a solar PPA work?

a.  We assess the potential of your roof and gather data regarding your current electricity usage and pricing.

b.  We provide you with a proposal outlining the financial savings and carbon reduction forecasts.

c.  You agree to lease the airspace above your roof and enter into a PPA.

d.  We install the solar PV system with minimal disruption to your business.

e.  You enjoy reduced electricity bills for c.25 years with no maintenance costs and worry free operation of the system.

f.  After 25 years, the ownership of the system transfers to you to enjoy free solar PV electricity for the remainder of the system’s life – c. another 10 years.

How can a solar PPA benefit my business?

a.  The solar PV system is fully funded with no hidden cost to you so you start saving from day one.

b. You purchase the solar electricity at a greatly reduced rate than your current energy supplier.

c. The whole system is installed, managed, and maintained under the contract.

d. The unit price you pay for your electricity will only rise in line with the RPI so you can control your company budget more efficiently.

The PPA is fully transferable to the new occupier should you move. Or we will transfer the full system to your new premises at no extra cost.

Your corporate and social responsibility will improve greatly, enhancing your relationship with customers, staff, and community.

What happens if the Solar PV system fails?

In the unlikely event that the system fails, an alert will be sent through a remote monitoring system whereby the operations team will resolve the issue. This is covered through the operations contract.

As a landlord how can I benefit from installing Solar PV for my tenants?

As a landlord you lease the airspace above the roof or adjacent land and the supplier funds and owns the solar installation through the PPA.

You as a landlord could then either:

a. Sell the lower cost solar energy to your tenants at a similar rate to what they are buying from the grid and make an additional revenue stream or:

b. Pass on the full cost saving benefits to the tenant.

As a tenant how can I benefit from installing Solar PV if I have a landlord?

As a tenant how can I benefit from installing Solar PV if I have a landlord? There are currently 3 options:

1. Through the PPA we fund the solar installation, maintenance, and operation and take an airspace lease with the landlord. The landlord provides us with a right to remain if the tenant vacates and we sell the cheaper solar generated energy on to the new tenants.

2. The landlord benefits from better EPC which is more attractive to new tenants looking for green credentials. The current tenant benefits from the green credentials and cheaper energy.

3. The solar supplier takes a sublease with the tenant and the landlord grants us the right to remain in the event the tenant moves on, both benefiting from green credentials and cheaper energy.

You can also benefit from a ‘lift and shift’, whereby the tenant takes the solar installation with them to another building if they move premises.

If I have a Solar PV installation through a PPA can I use it for Electric Vehicle (EV) charging points?

Yes, through our EV charging partner we can offer a fully funded EV charging solution that will be powered by the Solar PV installation. This will increase the PPA rate slightly but it will still be lower than your current energy rate offered by the mainstream suppliers.

What will happen with the PPA if the supplier goes out of business?

The Solar PV system is owned by a Special Purpose Vehicle (SPV) that also owns many other systems. The SPV is valuable as all these systems generate long-term bankable revenues for investors. If the operating company goes bust the bank will step in and sell the asset to another investor group.

NOTE: SPV – A company for a special/specific purpose. For solar portfolios it’s a company set up to own and operate the solar systems.

How long does a PPA contract last?

PPA's offer long-term protection and forecasting for your business. The unit price you pay for electricity generated by the solar PV system will only rise in line with RPI. Consequently, hikes in prices by energy providers make no difference to your business, meaning you can budget more effectively and accurately.

Most PPA's run for 25 years but some start at 10. By choosing the length best suited for you, you can align your energy savings with your long-term business plan.

PPA's also give your business green credentials. By being part of a PPA, you’re future proofing your business by improving your company’s environmental responsibility. From a customer point of view, this will only enhance relationships – not only with customers but current and prospective staff and suppliers.

Energy Renewables in Partnership with Eden Sustainable

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If you'd like to explore the idea of state-of-the-art solar energy or cutting-edge EV chargers, we would be delighted to hear from you.

Together we'll make great things happen. Give us a call on 01825 627 247 to discuss the potential.

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