How a Solar PPA can change a businesses future energy proposition.
How new build solar is changing the future of the energy industry.
Over the last decade a silent revolution has been taking place in the energy industry. Large businesses have begun to take control of their own electricity supply chains, pushing aside traditional utility companies in favour of Power Purchase Agreements (PPAs). Naturally Tech companies such as Google and Amazon have led the way, buying enough renewable power between them to power a country the size of Ireland annually, but they aren’t the only ones. Sustainably focused businesses have been able to take advantage of the rapidly dropping price of renewables by dealing directly with renewable generators, bypassing their local utilities.
What is a Solar PPA?
A Power Purchase Agreement (PPA) with a solar development simply allows an energy user to buy the energy they need directly from the wind farm itself. It provides a greater transparency, price and terms for the customer and in return the solar development has greater financial security. PPAs help to grow renewable generation either through the direct support of a large customer or through a number of smaller customers. This financial security enables the renewable generator to build out the current project or to invest in future development.
PPAs have been used globally for decades and are nothing new, but the low cost of renewables has opened this up to smaller businesses for the first time. They are a legal contract between you and the wind farm, not dissimilar to the current energy supply contract you may have with your current supplier.
What benefits can I expect?
The environmental benefits of buying your energy from renewables have been well documented, but the commercial benefit to a company is the reason that companies as price sensitive as Amazon are increasingly buying all of their energy straight from the renewable generator. A PPA gives you more flexibility around the terms you want to agree, enabling you to hedge a certain portion of your energy consumption and apply a market tracker to the remaining energy.
The main areas of benefit when compared to a standard supply contract are:
- Fixed price – typically at or below the wholesale price of energy
- Longer fixed term – 3 to 20 years can be fixed with renewables
- Greater transparency – ensure your money is not spent on fossils fuels
- Certification – Guarantees of Origin for all of your energy
Will it interrupt my electricity supply?
No, the electricity from the Solar development is transferred over the existing network in exactly the same way that you currently receive your electricity. transmission is managed by the System Operator.
How do I find a wind generator for a PPA?
Get in touch and we’ll do the rest. We analyse your energy profile to find a suitable project or operational generator to link you in with. We then join you with other forward thinking businesses to get the best price possible by buying in bulk.