A Practical Guide for UK Businesses Exploring Solar in 2025
If your business is considering switching to solar but you are unsure about the upfront costs, a Power Purchase Agreement (PPA) could offer the perfect solution. PPAs allow you to benefit from solar energy without purchasing the system yourself — making them an increasingly popular option across the UK, especially in regions like Swindon, Bristol, and the South West.
At Next Generation Solar, we help businesses access trusted PPA partners and manage the entire process from design to installation and aftercare.
What Is a Power Purchase Agreement (PPA)
A Power Purchase Agreement is a long-term contract between your business and a third-party investor. The investor pays for the solar system, installs it on your roof or land, and sells you the electricity it generates at a reduced rate compared to your current energy supplier.
Your business avoids the capital expense of buying the system, while still lowering energy bills and reducing reliance on the grid.
How Does a PPA Work
-
A solar provider or investor installs the system on your property
-
You agree to buy the electricity produced at a fixed rate
-
The agreement typically lasts 10 to 25 years
-
You pay only for the energy you use — not for the panels
-
Maintenance and monitoring are handled by the provider
Who Is a PPA Suitable For
PPAs are ideal for:
-
Large commercial sites with high daytime energy use
-
Car dealerships with significant roof space
-
Businesses without the capital to fund a system upfront
-
Organisations aiming for sustainability targets without impacting cash flow
Many of our clients in and around Swindon have found PPAs to be a smart alternative to traditional solar ownership, especially when operational budgets are tight.
Pros of Power Purchase Agreements
-
No upfront costs
-
Predictable and often lower energy bills
-
No responsibility for system maintenance
-
Helps meet environmental and carbon goals
-
Often off balance sheet (subject to accounting standards)
Potential Drawbacks and Risks
-
You do not own the system
-
You are tied into a long-term contract
-
If energy prices fall significantly, you may pay more than market rates
-
Roof or site alterations can be restricted during the agreement
We always advise reviewing the full contract with your finance team before signing. At Next Generation Solar, we help you understand the terms and match you with reputable, transparent providers.
Real-World Example
A large multi-site car dealership group based near Swindon recently used a PPA to install solar across three locations. With no upfront investment, they immediately cut annual electricity costs by 18 percent and projected savings of over £200,000 across the term — all while improving their environmental credentials.
How Next Generation Solar Helps
We act as a trusted facilitator between your business and the PPA provider. Our role includes:
-
Assessing your site for suitability
-
Designing the most efficient system
-
Introducing reliable funding partners
-
Overseeing installation and grid connection
-
Providing long-term system monitoring and support
Our goal is to make solar simple, even when you do not own the system.
Considering a PPA for Your Business in Swindon or Beyond
If you are exploring commercial solar in Swindon, Reading, Oxford, or the surrounding areas, a PPA might be the best way to start your transition without upfront risk.
Speak to our team today for a no obligation assessment and discover whether a PPA is the right fit for your business.
Explore more:
%20and%20Should%20Your%20Business%20Use%20One){kind=link}