economics

of power purchase agreements

A Corporate Power Purchase Agreement (CPPA), is a binding contract between an energy generator or Seller and a Buyer, to purchase the green energy generated by your solar power plant.

PPAs usually have an extended term. . . typically between 10 and 25 years, allowing high demand Corporate consumers to more accurately plan their future financials.

This unique scheme allows you to benefit from cheap renewable energy whilst also protecting your capital, your cashflow, and insulating your business against future market price fluctuations. . . all with zero capital expenditure!

Bonus content: an example CPPA case. . .

Company 'A' was projecting a need for 200,000 kWh (kiloWatt hours) of power from the grid over the next 12 months, at a cost of 30p per kWh (from their existing energy supplier). . . and were, therefore, expecting an annual bill of £60,000.

Installing a 250 kW solar pv array with 100 kWh of battery capacity would allow them to generate and store 220,000 kWh per annum. . . energy that will be available to use in their business premises, with each kWh costing from just 10p.

200,000 kWh (used on-site) @ 10p per kWh = £20,000. . . an instant saving of £40,000 a year, every year, for at least the next 20!

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It's no surprise, therefore, that CPPAs now represent the most popular way to finance large scale commercial solar power installations in the UK. If your energy usage and roof area (or outside space) meet specific criteria, this solution could offer you the benefit of a FREE solar PV and battery bank installation, financed entirely by a PPA provider.

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predictability

Under the terms of a Power Purchase Agreement, the price you will be paying for self-generated green electricity (10p per kWh in the CPPA example above) is guaranteed NOT to increase by any more than 4% per annum, for the entire term of the contract. . . so you know exactly what you will be paying for electricity five, ten or twenty years from now!

Bonus content: funding options for a solar power plant.

There are three ways to fund the development of a large-scale solar farm;

Self funded: If capital and cashflow permits, buying the hardware outright (including the design and installation of the system), will return the greatest long-term benefit. However. . . as a guide, expect to commit around £300,000 for a 250 kW roof-mounted solar array with 200 kWh of battery storage.

3rd party finance: Drawing upon market experience, Solwr can suggest appropriate lenders. . . and provide you with the necessary technical submissions and performance projections.

Power Purchase Agreements: PPAs require no capital expenditure, reduce energy costs, increase sustainability, attract environmentally conscious consumers and mitigate market risks are, therefore, often pivotal to investment decisions.

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freephone 08000 30 27 77

. . .or submit the form below and Solwr's engineers will carry out a remote aerial survey and prepare an analysis based on the information you provide.

request a free analysis

Please complete and submit this short form so that our engineers can produce a free outline cost / benefit analysis specific to your Corporate situation.

Or; to request a survey without obligation, or simply to have your questions answered, you can email Solwr's head office engineering department direct on; installs@solwr.wales