Power Purchase Agreement (PPA)

Photon energy have access to a variety of funders to offer ppas.

Commercial electricity tariffs are continuing to increase by between 5% and 6% each year. Photon Energy can now offer power purchase agreements (PPA) of solar power for our commercial customers. The benefit, through a Power Purchase Agreement is reduced electricity rates and to hedge against future electricity price rises without having to pay the capital cost of installing and maintaining a solar PV system.

PPAs can be an excellent way of fixing future electricity costs, with no capital expenditure by the customer. PPAs are financed through a third party who owns the solar PV system and signs a roof lease with the building/land owner, who then commits to buy the solar electricity at an agreed price for a fixed term between 10 years and 20 years. At the end of the term, ownership of the solar PV system is transferred to the building owner.

Photon Energy can now offer power purchase agreements (PPA) for solar power systems with our partners, Two Blues Solar and Societe Generale Equipment Finance (SGEF).

What is a Power Purchase Agreement (PPA)?

Instead of purchasing a solar installation outright, a PPA allows a business to purchase solar energy at an agreed price for a fixed term of between 10 years and 25 years.

The PPA price for the solar energy is typically significantly lower than current electricity retail tariffs and at the end of the PPA term, ownership of the PV system is transferred to the customer.

Benefits of PPA:

1.    No upfront cost to the customer

2.    Long-term electricity price certainty

3.    Flexible lease options available

4.    Zero capex and O&M costs

5.    No management burden

6.    Significant energy savings from day one

7.    Option to buy the system at any point

Partnership with Two Blues Solar:

Photon Energy has partnered with Two Blues Solar (TBS), bringing customers an incredible opportunity for fully-funded solar through a Power Purchase Agreement (PPA) option. This allows your business to achieve significant energy savings and sustainability benefits without the need for capital outlay.

TBS funds 100% of the procurement, installation and ongoing maintenance of the solar PV system, providing power to businesses at guaranteed, significantly lower-than-market rates. This means that businesses can enjoy the benefits of clean energy without the burden of high costs, all while making a significant contribution towards reducing their carbon footprint.

TBS owns the installation for the duration of the PPA, leasing or sub-leasing the roof space from the customer during this period.

Photon Energy and TBS manage the entire process of planning, installation, grid connection, reporting, operations and maintenance.

Flexible Funding Options:

Two Blues Solar can offer flexible PPA options, both in terms of PPA length and pricing structure:

-          Inflation-linked pricing

-          Fixed price

-          Discount-to-market

Customers have the option to acquire energy on a pay-as-you-go basis, ensuring they only pay for the exact amount they consume and avoiding any unnecessary charges for unused energy.

How to get started:

Once half-hourly electricity data is sent to Photon Energy, we will analyse the consumption data considering factors such as consumption profiles, system size, and lease duration to determine an appropriate PPA price. Our dedicated teams at Photon Energy and TBS then work with the customer to customise a PPA solution that perfectly aligns with their business objectives and commitment to sustainability.