How A PPA Can Help Business Energy Needs

As energy costs across the UK have soared with the new price cap and are set to increase further as the country heads towards the winter months too, many businesses will be seeking ways to cut down on energy costs whilst also working towards achieving their own net zero goals too and one of the most effective ways of doing so could be a power purchase agreement.

Whilst this is not a new solution as they’ve been around for quite some time, power purchase agreements may be the answer for many businesses looking to check both boxes at the same time as a long-term agreement between the energy provider and the business putting a fixed price on energy costs whilst PPA prices are far below market level and also securing a renewable energy source to contribute towards lowering carbon emissions.


Whilst they are a fantastic solution, PPA’s can also be very complex and require careful consideration to set up – but what are the benefits to a power purchase agreement, and how can they help businesses achieve net zero?

Price and budget security for up to 15 years

As noted above, energy prices rising as much as they have over the past few months and in the future too will be putting a strain on even the most prepared, but power purchase agreements are a solution to this problem. By using prices that are well below market levels and locking them in with the agreement – with these prices locked in, no matter how much the wholesale market sees change, prices will remain the same throughout the duration of the PPA.

Credentials for showing commitment

For larger businesses, in particular, mounting pressure is only growing to show commitment to net zero change and with the UK goal to have all businesses achieve this by 2030, showing credentials of commitment will only become more important in the future too. Signing a PPA agreement is a great way for businesses to show their commitment to CSR and should tick one of the many boxes that are needed to fulfill net zero goals.

These solutions do require specialist help to set up however, they require knowledge of existing agreements and usage profiles for individual businesses too – this does mean involving a third-party consultancy which may increase the cost of making a change but does also mean there’s a team on the inside that will help secure the best benefits.

Involving a consultancy will also help in other aspects which include monitoring and tracking progress and the use of their tools specifically designed to help make a change to internal processes too, but the expert help will make adjusting to new net zero arrangements. Making this change may be more pressing than before too with energy prices showing no signs of slowing down and only increasing further over time, so it’s important to get an agreement signed sooner rather than later to maximize potential savings and cut down on the risk of having prices increasing further.



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