Solar Carport Power Purchase Agreement (PPA)

A solar carport Power Purchase Agreement (PPA) is the dominant zero-capex commercial solar finance route in the UK. Under a PPA, an investor funds, builds, owns and operates the carport. You sign a long-term agreement to buy the electricity it generates at a fixed price (typically 14-18p/kWh) — well below current grid retail (38-52p/kWh). No capex outlay, no balance sheet impact, no ownership of the asset.

How PPAs work

Three parties: (1) the PPA provider funds and owns the carport asset (often a project SPV); (2) the off-taker — your business — signs a 15-25 year power purchase agreement; (3) the installer (us) designs and builds. You pay only for the kWh consumed at the contracted price. Surplus exports to grid under SEG; the PPA provider takes that revenue. If the carport underperforms, the PPA provider absorbs the risk.

UK PPA pricing in 2026

Current commercial solar carport PPA rates: 14-18p/kWh fixed for 15-25 year terms in the UK, with annual escalators typically RPI-linked at 2-3.5%. Compare to grid retail of 38-52p/kWh for half-hourly metered commercial sites — PPA delivers 25-40% saving on day one.

Who benefits most from PPAs

PPAs are most attractive for: (1) Non-tax-paying entities like charities, NHS Trusts, universities — they cannot claim AIA tax relief anyway; (2) Companies with capex hurdles — capex-light operations like retail / hospitality / logistics where every £100k goes to revenue-generating use; (3) Buyers who want zero balance sheet impact — operational leases under IFRS 16; (4) Buyers who don't want to manage a PV asset — 25 years of maintenance, replacement, warranty management is the PPA provider's job.

PPA economics — worked example

For a 300 kWp solar carport at a Greater London retail site generating 255,000 kWh/yr: PPA at 16p/kWh fixed. Year 1 site bill if buying from grid at 47p/kWh: £119,850. Year 1 site bill from PPA solar: £40,800. Year 1 saving: £79,050 — with zero capex. Over 25 years at 2.5% RPI escalation on the PPA, total contracted savings: ~£2.4m (vs grid alternative).

PPA contract terms — what to scrutinise

Standard UK solar carport PPA contracts run 75-150 pages. The critical clauses: (1) price escalator — fixed vs RPI; (2) volume commitment — minimum take-or-pay; (3) force majeure — what happens in extreme weather; (4) exit / step-in rights — your option to buy out the asset at year 5/10/15; (5) change of ownership — site sale, business sale; (6) maintenance and uptime guarantees — what happens if generation drops below threshold.

How we deliver PPAs

We work with 4-6 UK independent PPA providers and route every commercial carport project through a competitive PPA mini-tender if requested. Process: (1) we run feasibility + design + planning at risk; (2) PPA providers bid against the technical pack; (3) you compare PPA pricing side-by-side; (4) selected provider funds and signs PPA; (5) we build the asset. Our team handles contract negotiation alongside your legal counsel.