Power Purchase Agreement

The Little Green Energy Company partner with some of the best asset investors in the UK – offering free, fully maintained solar PV systems up to 50MW through an attractive power purchase agreement for the next 30 years.

A PPA is an increasingly popular ‘free’ solar offering that gives a range of financial and environmental benefits. It is an agreement between 2 parties, with one generating the energy and the other buying it. During this term, electricity generated by the PV system is purchased at a cheaper rate – saving you thousands of pounds every year and giving you long term control over your business overheads.

Today’s electricity market

Addressing volatility and escalating costs

The UK energy market is evolving. Distributed, low-carbon energy generation is fast replacing the declining capacity of centralised, fossil-fuel based power stations that once dominated the electricity market. In response, the delivered price of power is rising to absorb integration costs of increased intermittent, low-carbon generation.

The commodity element is subject to supply, demand and geopolitical influences causing costs to rise and fall in a short space of time. By contrast, the non-commodity elements made up of charges, levies and taxes are predictable and forecast to rise extensively as a result of government interventions in the electricity market along with balancing, transmission and distribution costs.

We are now in a situation where the end user is exposed to both market volatility and uncertainty that comes with buying energy, which is a global commodity, as well as supporting the escalating non-commodity costs. The consequence of this to the end user is one of being forced into short-term planning of their energy strategy.

Indicative Electricity Price Projection vs PPA Solar Electricity

Solar Electricity – hedge against market uncertainty

Choosing to procure solar electricity via a PPA is a perfect hedging strategy against market uncertainties as it provides a direct, reliable and independent source of locally generated power. In simple terms, it will provide businesses their own, exclusive solar power-station but, better still, we can do this at a 25% lower cost than forecasted grid supplied electricity.

Our in-house team will design, develop and deliver a tailored solution that will negate non-commodity charges because we will be connecting directly into your network (behind-the-meter). Your business will benefit from cheaper electricity and future pricing certainty that comes with the ability to fix these costs for up to 30 years.

Is PPA right for you?

  • Suitable roof or ground space
  • You or the company own the property
  • Looking to protect from a volatile energy market
  • Looking to reduce costs
  • Aiming to meet carbon reduction targets and improve CSR

Benefits

  • No initial costs – Cash flow positive from day one
  • Allows you to use capital to invest in other areas of your business
  • Reduce OPEX costs
  • Fixed energy costs
  • No system performance or operating risk
  • Great PR – visibly demonstrate environmental commitment

Free solar and cheaper energy

If your business satisfies any of the criteria above, you may be eligible to receive a free, fully maintained solar PV system – designed and installed by The Little Green Energy Company – in return for a fixed term lease or license of your roof.

A competitive PPA price (per unit of electricity) will also be offered that is significantly lower than the energy market – fixing your energy costs and saving you tens of thousands of pounds each year.

If you would like further information or to see if your business is eligible, Contact us and ask to speak with the Commercial sales team.