--- title: "Solar PPA Explained: Commercial Solar with Zero Upfront Cost | Alliant Energy" description: "Solar PPA explained: how UK businesses get commercial solar installed with zero upfront cost, fix their electricity rate, and start saving from day one. Real numbers included." lang: en json-ld: | [ { "@context": "https://schema.org", "@graph": [ { "@type": [ "Organization", "LocalBusiness", "ProfessionalService" ], "@id": "https://alliantenergy.co.uk/#organization", "name": "Alliant Energy Ltd", "alternateName": "Alliant Energy", "legalName": "Alliant Energy Ltd", "url": "https://alliantenergy.co.uk", "logo": { "@type": "ImageObject", "url": "https://alliantenergy.co.uk/logo.png", "width": 320, "height": 80 }, "image": "https://alliantenergy.co.uk/og-default.jpg", "description": "MCS-registered renewable energy specialists installing solar PV, battery storage, EV charging and air source heat pumps for UK homes and businesses across the North West. 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A funder pays for the system; you buy the electricity it generates at a fixed, below-market rate — saving from day one.", "image": "https://alliantenergy.co.uk/assets/funded-commercial-CFCwxx6Z.jpg", "author": { "@type": "Person", "name": "Alliant Energy Team", "url": "https://alliantenergy.co.uk/about" }, "reviewedBy": { "@type": "Person", "name": "MCS Registered Engineer", "jobTitle": "MCS Registered Engineer" }, "publisher": { "@type": "Organization", "name": "Alliant Energy", "url": "https://alliantenergy.co.uk", "logo": { "@type": "ImageObject", "url": "https://alliantenergy.co.uk/logo.png" } }, "datePublished": "2026-01-15", "dateModified": "2026-05-19" }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Can I switch to a better energy tariff if I have a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "For your grid-supplied electricity (what the panels don't cover), yes. The PPA rate only applies to solar-generated electricity. Many businesses combine a PPA for solar with a negotiated grid contract for the remainder." } }, { "@type": "Question", "name": "What happens if I sell the property during a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "Most PPA contracts can be assigned to the new owner subject to their creditworthiness. If a buyer is unwilling to take it on, early exit fees may apply — worth clarifying in the contract before signing." } }, { "@type": "Question", "name": "Is a PPA the same as solar leasing?", "acceptedAnswer": { "@type": "Answer", "text": "Similar but different. A lease charges a fixed monthly fee regardless of generation; a PPA charges per kWh generated. For variable generation, a PPA is usually better — you only pay for what you get." } }, { "@type": "Question", "name": "Can I get battery storage included in a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, increasingly. Battery storage can be included though it adds complexity to the contract. Discuss during the assessment." } } ] } ] --- [![Alliant Energy — Renewable Energy Solutions](/__l5e/assets-v1/3bd22195-cc6e-43e6-b5ff-5a808ce292d3/alliantenergyltd-2.svg)](/) [Home](/)[About](/about-us) [Services](/services) [Guides](/guides)[Case Studies](/case-study)[![Levelise](/__l5e/assets-v1/59fd362e-361a-47d7-ad1f-65e9beeb5289/levelise-logo.webp)](/guides/levelise-hub-explained) [01282 501589](tel:01282501589)[Get a Quote →](/quote) Spoke guide · Commercial # Solar PPA Explained: How to Get Commercial Solar with Zero Upfront Cost A Power Purchase Agreement lets a business install commercial solar at no upfront cost. A funder pays for the system; you buy the electricity it generates at a fixed, below-market rate — saving from day one. By **Alliant Energy Team**· reviewed by MCS Registered Engineer Last updated 19 May 2026 [Get a PPA Quote](/fully-funded-commercial-solar-2) [Speak to an Engineer](/request-callback) On this page - [How a PPA works](#how) - [What it costs](#cost) - [PPA vs buying](#vs-buying) - [Contract terms](#terms) - [Who qualifies](#qualify) - [FAQ](#faq) Ready to act? Free quote in one working day. [Get a Quote →](/quote) PPAs have been the standard funding model for large-scale commercial solar in the UK for years. They're now accessible to businesses with electricity bills from around £30,000/year. Here's exactly how they work. ## How a solar PPA works - A funder pays for the full installation — panels, inverter, battery (if applicable), installation and DNO connection. - The system is installed on your roof and generates electricity for your building. - You buy that electricity from the funder at a fixed rate — typically 8–15p/kWh, versus 25–35p/kWh from the grid. - The funder earns their return over a 10–25 year contract from the margin between cost of generation and your rate. - At end of term, you typically have the option to buy the system, extend the contract, or have it removed. Ownership note You don't own the panels under a standard PPA — the funder does. That makes a PPA an operating expense rather than a capital purchase, and maintenance is typically the funder's responsibility. ## What does a PPA actually cost? There is no upfront cost — that's the point. Your ongoing cost is your electricity rate, fixed at a below-market level with a small annual escalator (typically 2–3%) built into the contract. Business scenario Grid cost before PPA PPA rate Annual saving Medium manufacturer (200kW) 28p/kWh — ~£56,000/yr 10p/kWh on solar ~£18,000–£24,000/yr Logistics depot (150kW) 26p/kWh — ~£39,000/yr 9p/kWh on solar ~£12,000–£16,000/yr Retail park (100kW) 30p/kWh — ~£30,000/yr 11p/kWh on solar ~£8,000–£12,000/yr Savings vary depending on system size, roof coverage, current grid rate and self-consumption. ## PPA vs. buying outright — which is better? Factor PPA Outright purchase Upfront cost £0 £50,000–£500,000+ System ownership Funder owns it Your asset Maintenance Funder's responsibility Yours Savings from day one Yes Yes Full Expensing / tax relief Not applicable Yes — 100% first-year relief Long-term financial gain Lower — funder takes margin Higher — all savings to you Balance sheet impact Off-balance sheet (opex) Appears as asset Best for Limited capex, opex preference Profitable companies on 25% corp tax Rule of thumb For a company paying 25% corporation tax eligible for Full Expensing, buying outright typically delivers a better long-term return. A £200k system effectively costs £150k after first-year tax relief. If capex is constrained, a PPA delivers immediate savings with no financial risk. ### Find out if a PPA fits your site Free pre-qualification from a commercial engineer — no obligation. [Get a PPA Quote](/fully-funded-commercial-solar-2) [Request a Callback](/request-callback) ## PPA contract terms: what to watch for - Contract length: 10–25 years. Longer = lower rate but less flexibility. - Escalator rate: 2% is common; push back on 3%. An 8p/kWh rate at 3% becomes 13p/kWh in year 20. - End-of-term options: confirm purchase, extension and removal terms. - Performance guarantees: a good PPA includes minimum generation cover. - Exit clauses: understand early-exit fees and assignment to a new owner. ## Who qualifies for a PPA? Funders typically look for: - A property you own or occupy on a long lease (10+ years remaining) - Annual electricity spend of £30,000–£50,000+ - A roof or ground area suitable for 50kW+ of panels - Daytime electricity use that aligns with solar generation - A creditworthy business We pre-qualify businesses as part of the initial conversation. If a PPA is the right route we'll tell you — and if outright ownership or a hybrid arrangement makes more sense we'll say that too. ## Frequently asked questions ### Can I switch to a better energy tariff if I have a PPA? For your grid-supplied electricity (what the panels don't cover), yes. The PPA rate only applies to solar-generated electricity. Many businesses combine a PPA for solar with a negotiated grid contract for the remainder. ### What happens if I sell the property during a PPA? Most PPA contracts can be assigned to the new owner subject to their creditworthiness. If a buyer is unwilling to take it on, early exit fees may apply — worth clarifying in the contract before signing. ### Is a PPA the same as solar leasing? Similar but different. A lease charges a fixed monthly fee regardless of generation; a PPA charges per kWh generated. For variable generation, a PPA is usually better — you only pay for what you get. ### Can I get battery storage included in a PPA? Yes, increasingly. Battery storage can be included though it adds complexity to the contract. Discuss during the assessment. Three ways to get started ## Ready to find out what solar saves you? Get a tailored quote in one working day. No obligation. No hard sell. Speak to a renewable energy engineer — not a salesperson — at a time that suits you. [Get a Quote → ](/quote) [Request a Callback →](/request-callback) [Download Brochure →](/brochure) Accreditations ## Certified, registered, and insured. Every time. MCS certification isn't a box-ticking exercise — it qualifies your system for Smart Export Guarantee payments and government grants. Our installers are also NICEIC-approved and TrustMark-registered, and every install is fully insured. ![Citation ISO Certification: ISO 9001 quality management, ISO 14001 environmental management and ISO 45001 occupational health and safety](/__l5e/assets-v1/180183cd-e6fd-4b0a-984c-83e6a41390d7/accreditations-iso.jpg) ![Alliant Energy — Renewable Energy Solutions](/assets/logo-IFrgP5Dc.png) Renewable energy & energy-saving specialists. MCS-registered solar PV, battery storage, heat pumps and EV charging across the UK. #### Quick Links - [Home](/) - [About Us](/about-us) - [Services](/services) - [Case Studies](/case-study) - [Areas We Cover](/solar-panel-quotes-north-west) - [Contact](/contact) - [Privacy Policy](/privacy) - [Terms & Conditions](/terms) #### Services - [Solar for Homes](/services/solar) - [Commercial Solar](/services/commercial-solar) - [Battery Storage](/services/battery-storage) - [Air Source Heat Pumps](/services/heat-pumps) - [EV Charging](/services/ev-charging) - [Energy Saving Advice](/services/energy-saving-advice) #### Contact - [01282 501589](tel:01282501589) - [info@alliantenergy.co.uk](mailto:info@alliantenergy.co.uk) - Unit 214 Northlight Industries, Pendle Road, Brierfield, Nelson BB9 5FL [Get a Quote](/quote)[Brochure](/brochure) Alliant Energy Ltd is an Introducer Appointed Representative (Financial Services Register No. 1020779) of Phoenix Financial Consultants Limited (Phoenix). Phoenix is a credit broker, not a lender. Phoenix is authorised and regulated by the Financial Conduct Authority (FRN: 539195), and offers finance from its panel of lenders. All finance subject to status and credit checks. © 2026 Alliant Energy Ltd. All rights reserved. [Privacy Policy](/privacy)[Terms & Conditions](/terms) MCS Registered · TrustMark · NICEIC [Chat with AI](/chat) [Call back](/request-callback) [Get a Quote](/quote) [Get a Brochure](/brochure) [Get a Quote](/quote) [Chat with AI](/chat)