How Power Purchase Agreements work

Solar PPA Explained

Solar Power Purchase Agreements (PPAs) enable businesses to take full advantage of power generated from solar energy without the initial financial burden of purchasing solar panel systems.

Under a solar PPA, companies agree to purchase the electricity generated by their solar system at a predetermined rate. This solar leasing arrangement ensures businesses benefit from fixed energy costs over the contract’s duration, providing much-needed financial predictability in an often volatile market.

Additionally, solar PPAs allow businesses to enjoy the benefits of solar energy without the responsibilities of system maintenance and performance monitoring¹. As part of the agreement, Enerbee ensures that the solar PV system operates efficiently throughout the term of the contract

Benefits of Solar as a Service for UK Businesses

  • Zero Capital Required

    Have a bespoke solar PV system installed at your site with no initial outlay costs.

  • Fixed, Lower-Cost Energy

    Lock in lower electricity rates through a long-term agreement, protecting your business from energy price volatility.

  • Zero Maintenance

    Zero costs for maintenance as the SaaS allows for the system to be fully maintained at no cost to the client.

  • Immediate Savings

    Start saving from day one – enjoy reduced operating costs and improved cash flow.

Choosing Solar as a Service with a Power Purchase Agreement from Enerbee offers your business a smarter, more sustainable way to access environmentally friendly energy—without the risk of upfront investment or ongoing management. With this model, you can immediately benefit from predictable savings on your energy bills, as you only pay for the solar electricity you use. This is charged at a fixed, lower rate, shielding your business from the volatility of rising energy prices.

For UK businesses, adopting solar power is a strategic step toward meeting sustainability goals and enhancing your corporate reputation. By generating renewable energy on-site, you reduce your carbon footprint and demonstrate a genuine commitment to environmental responsibility. It’s worth noting that market trends* clearly indicate a growing preference among customers, partners, and regulators for businesses that demonstrate sustainable practices.

Unlocking Value: Solar Power Purchase Agreements vs. Owning Your Solar PV System

When deciding between buying a solar system outright and choosing a Power Purchase Agreement (PPA) with Enerbee, it’s important to weigh the differences in cost, risk, and responsibility. With a traditional solar system purchase, your business may need significant upfront capital investment to buy and install the system.

You own the asset, which can mean you’re responsible for ongoing maintenance, repairs, and system performance. While you can claim any available tax incentives directly, and may benefit from greater long-term savings once the initial investment is recouped, you also take on operational risks and system management responsibilities throughout its lifetime. The savings from outright purchase typically become most apparent after several years, once the system has paid for itself, and any future upgrades or repairs are at your expense.

Solar PPA vs Buying

Commercial solar financing compared.

  • £0 Upfront cost

  • Maintenance is fully managed by Enerbee

  • All tax benefits handled by Enerbee

  • Immediate savings with fixed, predictable rates.

  • System performance risk incurred by Enerbee

  • Flexile terms (typically 10-25 years)

Traditional Solar Purchase

  • Capital expenditure, upfront investment

  • Maintainence is business owners responsibility

  • Business claims incentives available

  • Variable savings after recouping investment.

  • System performance risk incurred by the business

  • Contract length N/A

 

How Does Solar as a Service Work?.

Years of experience

10+

Companies using Solar as a Service

450+

Industries Served

30+

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