Procure Smart

Power Purchase Agreements

A popular route into renewables

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Power Purchase Agreements (PPAs) are growing in popularity

Businesses in the UK are moving towards a lower-carbon/higher-security energy generation mix to prepare their energy strategies for the future.

At Procure Smart, we are assisting businesses with this transition via our turnkey renewables PPA solution.

PPAs are commercial agreements which provide businesses with all of the benefits of renewables technologies, but none of the capital outlay.  Some of the world’s largest brands now utilise PPAs to lower their costs and carbon footprint, such as Ford, Google and Amazon.

Negotiation of rates

Sourcing of PPA investment

Project management of installations

PPAs are suitable for a wide variety of businesses

A commercial solar PV array in front of a pink and yellow sunset

All of our installers are MCS accredited


For the purposes of these questions, we will use a straightforward solar PV PPA as an example.  We can arrange other types of PPA.

A solar PPA is a long term agreement between your business and a funder to design, build and maintain a solar PV system on your business’ premises.

There is no capital expense to your business, but you will benefit from a significantly lower unit rate for your electricity and a lower carbon footprint.

PPAs represent secure investment opportunities for various types of funds. 

Your system could be funded by venture capital, private investors, green funds or others.

Specialists like Procure Smart link relevant funders to opportunities for PPAs.

Our panel of installers are all Microgeneration Certification Scheme (MCS) Accredited.

This is a prerequisite of working with Procure Smart and essential as both a mark of quality and to allow you to maximise the potential uses of your solar PV system.

Typical lengths are between 10 and 25 years.

The price of power you purchase is fixed and will only increase annually in line with RPI.  Furthermore, the tariff will only be payable on electricity generated by the system.

Invoicing and payments will take place monthly, with accessible reporting and performance data providing you with control and convenience.

PPAs are a great way of demonstrating your business’ commitment to reducing emissions.

No planning permission is required for installations up to 50KW.

Systems under 1MW can be installed under the Permitted Development Planning Guidelines, unless involving a listed building or conservation area.

All licenses and permits would be investigated early in the feasibility process and we take responsibility wherever possible for documents and regulatory requirements.

There are no initial maintenance, refurbishment or roof upgrade costs to you.  We ensure the roof and/or land is suitable for the system during feasibility or site visits pre-installation.

Should we uncover any necessary works, there are several solutions, including incorporating the cost into the PPA itself.

The system itself will be insured by the owner, arranged by Procure Smart.  There is usually no change to your current premiums due to the asset’s third party ownership.  If this is not the case, we will uncover this during feasibility work.

It will be monitoried and maintained for the full duration of the agreement, without any additional cost to yourself.

This will depend largely on how quickly you can sign off and agree to the PPA yourself.  Typically, the timeline between signature and the system becoming operational is approximately four to six weeks.

Disruption to your operations will be minimal.  The vast majority of the work to be completed is exterior and our experienced installation partners will work with you to ensure internal works proceed without disruption.

Due to your ownership of the premises, this is the requisite legal route to someone else owning an installation on your premises, albeit for your benefit.

Similarly to how electricity contracts function, the PPA will be passed to the new owners.  This is a commonplace occurrence and processes are built into the PPA to account for this, making as seamless as possible.

You can activate an early release clause any time after year two.

Due to this being a financial instrument, the early settlement figure will depend on the term outstanding.

No.  Your supplier can continue to supply the power needed to meet your consumption.  

The weight of an installed panel is typically 14 to 15 kg per meter squared, including mounting equipment.

This loading rarely causes structural issues, but to be certain we carry our structural surveys on every building ahead of each project.

The all-risks insurance will cover any damage to the system that results from such an event.

Try our handy Power Purchase Agreement calculator

Simply fill in your current energy costs.  You can find everything below on a monthly bill.  Then, scroll down and input your roof/land size and select a desired agreement length.  

Press “calculate” to see an indicative cost saving opportunity.  This calculator does not include essential elements of a project plan, such as roof condition, space suitability etc.  These variables are investigated as part of our site surveys.

PPA Savings Calculator

Current external supply cost

Annual day usage (kWh)
Day unit rate (p/unit)
Annual night usage (kWh)
Night unit rate (p/unit)
Current standing charge (p/day)
Estimated current cost annually £0.00

PV system output and costs

PPA length
Roof space (metres squared)
Estimated output (kWh) 0
System unit rate (p/unit)
Consumption from PV System Cost 0
Top up supply cost 0
Night usage cost 0
Total estimated cost with system £0.00
Potential annual savings £0.00
Potential full contract savings £0.00

Power Purchase Agreements: the details

Speak to us about Power Purchase Agreements

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Energy Consultants Association membership badge: a sign of quality

Procure Smart is a founding member of the Energy Consultants Association, promoting best practice and a fairer non-domestic energy market for UK businesses.