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The business then buys the solar electricity it uses at an agreed pence-per-kWh rate, usually with little or no upfront cost for the panels. The business keeps its normal grid supply for electricity needed when solar output is not enough." } }, { "@type": "Question", "name": "Is a solar PPA the same as free solar panels?", "acceptedAnswer": { "@type": "Answer", "text": "No. A solar PPA is not free solar. The provider pays for the system upfront and recovers its investment by selling the generated electricity to the business over a long-term contract. The business avoids the initial capital cost, but it takes on an electricity purchase commitment for the agreed term." } }, { "@type": "Question", "name": "How does a commercial solar PPA work?", "acceptedAnswer": { "@type": "Answer", "text": "The PPA provider installs and owns the solar PV system, usually on the customer’s roof, car park canopy or nearby land. The system generates electricity during daylight hours, which the site uses where there is demand at the same time. The business pays the provider for metered solar electricity under the PPA, while continuing to buy any additional electricity it needs from its normal supplier." } }, { "@type": "Question", "name": "Who owns the solar panels under a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "The PPA provider normally owns the solar panels, inverters, cabling and associated equipment for the duration of the agreement. The host business provides the site and buys the electricity generated. The contract should explain what happens at the end of the term, including whether the system is removed, transferred, extended or bought by the customer." } }, { "@type": "Question", "name": "How is a solar PPA different from buying solar panels outright?", "acceptedAnswer": { "@type": "Answer", "text": "With an outright purchase, the business pays for and owns the solar PV system, keeps the full value of reduced grid imports and usually receives any export income. With a PPA, the provider funds and owns the system, and the business buys the electricity it uses. A PPA reduces upfront cost and operational responsibility, but usually gives the customer less control and lower lifetime value than owning the system." } }, { "@type": "Question", "name": "What type of business is best suited to a solar PPA?", "acceptedAnswer": { "@type": "Answer", "text": "A solar PPA is usually best suited to businesses with strong and predictable daytime electricity use, a suitable roof or land area, a long-term plan to stay at the site, clear property rights and an acceptable credit profile. Manufacturing sites, cold stores, food processors, offices, retail buildings, leisure centres, schools, logistics sites and farms can all be suitable if their electricity demand matches solar generation well." } }, { "@type": "Question", "name": "When might a solar PPA not be suitable?", "acceptedAnswer": { "@type": "Answer", "text": "A PPA may not be suitable if the site has low daytime electricity use, the roof is weak or due for replacement, the business may move soon, landlord consent is uncertain, or grid connection issues make the project uneconomic. It may also be less attractive where the business has capital available and wants maximum long-term savings from owning the system directly." } }, { "@type": "Question", "name": "Why is half-hourly electricity data important for a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "Half-hourly electricity data shows when a site uses electricity, not just how much it uses in a year. This matters because solar generation only has maximum value when it is used on site at the same time it is generated. At least 12 months of half-hourly data helps estimate self-consumption, export, curtailment and likely savings more accurately." } }, { "@type": "Question", "name": "What happens to surplus solar electricity?", "acceptedAnswer": { "@type": "Answer", "text": "If the solar system generates more electricity than the site is using, the surplus may be exported to the grid, curtailed, stored in a battery or limited by export controls, depending on the design and grid connection. The PPA contract should clearly state who receives any export income, how export is measured and what happens if export capacity is restricted." } }, { "@type": "Question", "name": "How long does a commercial solar PPA last?", "acceptedAnswer": { "@type": "Answer", "text": "Commercial solar PPAs are usually long-term agreements, often running for many years. The exact term depends on the provider, system size, project economics and customer circumstances. The term should be checked against the lease length, site occupation plans, roof condition and any likely property sale or refinancing plans." } }, { "@type": "Question", "name": "What contract terms should a business check before signing a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "A business should review the PPA rate, indexation, contract length, billing basis, export treatment, maintenance responsibilities, roof access rights, insurance requirements, early termination costs, buyout options, assignment rights and end-of-term arrangements. The contract should also explain what happens if roof works are needed, the building is sold, the tenant leaves or the system underperforms." } }, { "@type": "Question", "name": "Can a tenant use a solar PPA on a leased property?", "acceptedAnswer": { "@type": "Answer", "text": "Yes, but leasehold sites often need extra legal and property checks. The tenant may need landlord consent, roof access rights, cable route permissions and possibly lender or freeholder approval. The PPA term should also be compared with the lease term, break clauses and renewal plans so the tenant is not locked into obligations it cannot fulfil." } }, { "@type": "Question", "name": "Who maintains the solar panels under a PPA?", "acceptedAnswer": { "@type": "Answer", "text": "The PPA provider usually monitors and maintains the solar PV system, including performance checks and arranging repairs. 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