For many UK businesses the last two years since the pandemic lifted have been brutal financially and money is pretty tight. However, many of those same businesses have also laid out their Net Zero roadmaps. Most businesses in the UK are aiming to achieve net zero emissions by 2050 in line with the UK government's commitment to reduce greenhouse gas emissions and limit global warming by then. Some larger businesses, especially those in the FTSE 100, have committed to reaching Net Zero even earlier, with many setting science-based targets to achieve this goal sooner.
However, how do you square that circle, make the changes in the business which move it towards its Net Zero targets, while simultaneously conserving expenditure and avoiding running out of money?
One great solution for businesses that have large roofs or open land available is to consider solar panelling, ideally supported by solar battery storage, both of which Project Better Energy can advise you on and complete the necessary building works, equipment installation and configuration.
However, more than this Project Better Energy can advise you on how to buy your solar arrays. We have worked with many businesses over recent years to help them negotiate Power Purchase Agreements (PPAs) associated with establishing PV solar panels on commercial buildings.
PPAs offer several key benefits for businesses considering solar panel installations:
-No Upfront Costs: The solar provider covers the cost of designing, installing, and maintaining the solar power system, allowing businesses to adopt renewable energy without a significant initial investment.
-Predictable Energy Costs: PPAs provide a stable and often lower electricity rate compared to traditional utilities. This predictability helps businesses manage and forecast their energy expenses more effectively.
-Reduced Energy Bills: Businesses can see substantial savings on their electricity bills by purchasing power at a lower rate than what they would pay their utility company. In post installation analysis of several of our solar installs we found sites were able to cut energy bills by an average of 40.2%.
-Positive Environmental Impact: Using solar energy reduces reliance on fossil fuels, helping businesses decrease their GHG emissions and contribute to a more sustainable future. It contributes to reduced Scope 2 and, potentially, Scope 1 emissions.
-Maintenance Free: The solar provider typically handles all maintenance and repairs during the typical 15 to 25 year contracts , ensuring the system operates efficiently without additional costs or effort from the business.
-Energy Independence: Generating electricity on-site with solar panels can reduce dependence on external energy suppliers and mitigate the impact of energy price fluctuations. Further energy independence can be secured through the use of solar battery storage which Project Better Energy can also specify, supply and install for you.
-Enhanced Reputation: Adopting renewable energy demonstrates a commitment to sustainability, which can enhance a company's reputation among customers, stakeholders, and the community.
These benefits make PPAs an attractive option for businesses looking to embrace solar energy without the financial and operational burdens of owning and maintaining the system themselves.
How are PPAs set up?
Setting up a Power Purchase Agreement (PPA) involves several steps, typically coordinated between the business and a solar energy provider. Here’s an overview of the process:
Assessment and Proposal: -Project Better Energy assesses your business's energy needs, available space, and feasibility for solar installation.
-We offer a proposal outlining the system design, expected energy production, cost savings, and PPA terms.
PPA Agreement: -Both parties negotiate and sign the PPA contract, specifying the rate for electricity, contract duration, and other terms. Typical starting prices for power are 16p per kWh which for some is more than halving their existing rate. At the end of the agreement period businesses own their solar arrays outright.
Design and Permitting: -Project Better Energy can design your solar system, and help secure necessary permits and approvals from local authorities.
Installation: -Project Better Energy installs the solar panels and related equipment on the business's property.
-This phase includes setting up metering and connecting the system to the grid.
Operation and Maintenance: -Once installed, Project Better Energy operates and maintains the system throughout the contract term.
-The business begins purchasing electricity generated by the solar panels at the agreed-upon rate.
