How Does a PPA Work? A Guide to Fully-Funded Solar for Your Business
February 14, 2025
Are you a business looking to tap into the advantages of solar energy without making a large upfront investment? A Power Purchase Agreement (PPA) could be the perfect solution. At Devon Solar, we believe every business deserves access to clean, reliable energy. Here’s how a PPA helps you do just that—while saving money and boosting your green credentials.
1. Zero Upfront Costs
One of the standout features of a PPA is that it requires no capital investment. Your solar photovoltaic (PV) system is fully funded by Asset Management partners, meaning you don’t have to dip into your business’s cash flow or take on any loans to install solar panels. Instead, you can use that capital to invest in core operations, fuel growth, or simply shore up your financial reserves.
2. Immediate Savings on Energy Bills
Under a PPA, you pay a fixed (and often reduced) rate for the solar energy you consume—typically lower than your current grid electricity rate. With energy costs rising year after year, this locked-in rate is a huge advantage. From day one, many businesses see a noticeable drop in their monthly energy bills.
3. Protection Against Price Fluctuations
Electricity prices in the UK can be volatile, influenced by market forces and global events. A PPA ensures your energy costs rise only in line with the Retail Price Index (RPI). This stability empowers you to budget accurately and protect your business from sudden spikes in the cost of power.
4. Maintenance and Monitoring Included
When you opt for a PPA, you’re not just getting panels on your roof—you’re getting a fully managed solar solution. Maintenance, monitoring, and insurance are covered for the duration of the agreement (often 10 to 25 years). If the system underperforms or needs repairs, that’s on us, not you. Enjoy a hassle-free transition to renewable energy without any operational headaches.
5. Reduced Carbon Footprint and Enhanced Brand Reputation
Today’s consumers, employees, and stakeholders are more eco-conscious than ever before. By adopting solar power, you send a clear message that your business values sustainability. Showcasing your reduced carbon footprint can boost your brand reputation, strengthen relationships with environmentally-minded clients, and help you meet any corporate social responsibility (CSR) or ESG targets.
6. No Insurance Costs
In a typical solar installation, you might need to adjust or expand your insurance coverage. With a PPA, that’s handled by our Asset Management partners. You’ll never have to worry about unexpected costs or claim disputes—our comprehensive coverage ensures your system stays protected and performing at its best.
7. Easily Transferable
If you decide to relocate your business to new premises, your PPA agreement can usually be transferred to the new occupants. This flexibility allows you to grow or move freely, without sacrificing the benefits of a fully operational solar system.
8. Future-Proof Your Business
The UK is continually moving toward renewable energy and stricter environmental regulations. By embracing solar now, you prepare your business for upcoming policy changes and reduce the risk of carbon taxes. A PPA positions you ahead of the curve, ensuring you comply with evolving environmental standards well into the future.
Ready to Take the Next Step?
A Power Purchase Agreement offers a simple, cost-effective path to renewable energy. Whether your goal is to cut costs, reduce your carbon footprint, or secure price stability, a PPA ticks all the boxes—without requiring a penny of upfront investment.
Interested in learning more about how a PPA could benefit your business?
Contact us today. Our team is ready to answer your questions, assess your site’s solar potential, and guide you toward a greener, more financially secure energy future.
