How to lower your company’s energy bills through a fully funded solar PPA, without spending your own capital or worrying about maintenance.

Businesses are increasingly recognising the value of renewable energy solutions, not only for environmental reasons but also for their potential financial benefits.  However, what’s less widely known is that these benefits can be unlocked without the need for any upfront capital expenditure. 

Solar panel funding is available for businesses through a Power Purchase Agreement (PPA), where the advantages of solar energy can be gained without the upfront costs of purchasing and installing the panels, or the long-term hassle of solar panel maintenance.

In this article, we explore the substantial cost savings that can be achieved through a PPA for commercial solar panels, shedding light on the key considerations and benefits for businesses.

Zero Upfront Costs 💷

A typical industrial solar panel quote from a solar panel installer can range from £200k to £1 million plus, depending on the size of your roof and energy consumption. One of the most significant advantages of signing a PPA is therefore the elimination of this upfront capital expenditure. The solar developer or financier covers the expenses of purchasing, installing, and maintaining the solar panels on your company’s roof. 

In a volatile and uncertain inflationary environment, there are significant benefits to preserving your financial resources or allocating capital to other critical areas of your business, whilst still enjoying the advantages of renewable energy. 

Two Blues Solar can also model the costs for you so you can compare the financial viability of paying for the installation yourself versus a fully funded solution. The graph below shows the comparison between self-funding a 1MWp system which costs £950k and using a PPA to produce day-1 savings, while factoring in an opportunity cost of capital of 5%.

Predictable Energy Prices 🔒

Traditional energy prices are subject to fluctuations and market uncertainties, making it challenging for businesses to forecast and control their expenses. In contrast, by signing a PPA, you can establish a fixed or inflation-linked rate for the solar energy you consume over the agreed-upon contract term. 

This fixed rate protects your business from future increases in utility prices, providing cost certainty and stability.

At Two Blues Solar, we are constantly monitoring future energy price predictions. While wholesale energy markets have stabilized since the price shocks of 2022, ‘non-commodity’ charges—the costs of maintaining and upgrading the UK’s grid infrastructure—now make up a significant and growing portion of a typical business electricity bill. These regulated costs are largely independent of the wholesale energy market, making on-site generation a critical tool for controlling the costs that a standard energy contract cannot protect. We use Baringa and Aurora energy pricing models to provide our clients with as much information as possible on potential future prices and savings so they can make informed decisions.  

Long-Term Savings 🏦

While the immediate cost savings of a PPA result from zero upfront costs and predictable energy rates, the long-term financial benefits can be even more substantial. 

Typically, PPA contracts span 10 to 25 years, during which time you purchase the solar energy generated by the panels at a predetermined, significantly cheaper-than-market rate. Over time, if electricity prices continue to rise at rates above inflation, your PPA becomes increasingly advantageous, resulting in significant savings compared to traditional grid electricity. 

At Two Blues Solar, we can provide you with projections of the energy cost savings associated with solar panel installation specific to your business, so you can make an informed decision. 

Environmental and Reputational Benefits 🌳

Most organisations now have sustainability targets and goals which are scrutinised widely and important to investors, employees and consumers alike – but achieving those goals can often take a lot of time and capital. 

While many companies purchase energy through renewable certificates REGOs, these don’t always represent the creation of new renewable projects. By installing solar on your own roof, you are making a tangible and visible commitment to the UK’s energy transition. It is a quantifiable “win” that is easily reported in your annual sustainability filings.

Furthermore, on-site solar is one of the most effective ways to improve a building’s EPC rating—often moving it up by one or even two bands. With the minimum energy standards tightening in 2027, this isn’t just a green benefit; it’s a practical way to future-proof your property and ensure it remains legally lettable and valuable.

Installing solar creates visible sustainability wins (Image - Photon Energy)
Installing solar creates visible sustainability wins (Image – Photon Energy)

Signing a PPA for commercial solar panels offers a range of financial advantages. By eliminating upfront costs and providing predictable, lower energy rates, this arrangement enables you to embrace renewable energy without straining your internal capital.

Our experience is that the right PPA should align with your specific energy requirements and long-term business goals. With this model in place, your company can secure significant cost savings and meet sustainability targets, while we take on the full responsibility for the installation and ongoing performance.

 Get in touch here if you’d like to find out more.