The idea of generating clean, renewable, energy, onsite ticks many boxes; from enhancing their CSR credentials to reducing their reliance on fossil fuels, solar power has very few downsides.
Indeed, earlier this month the International Energy Agency (IEA) said of solar power, ‘in most countries it is now consistently cheaper to generate electricity by capturing the sun’s energy rather than by burning coal or natural gas
A PPA sees the solar array funded, operated and maintained by a third-party who has access to significant funds from institutional investors. The third-party will have unrivalled experience in developing high-quality solar arrays that deliver maximum benefit for both the host business and the investors.
Once the system is operational, the host business does not pay for the solar array but they agree to buy the solar energy from the panels on their roof at a cheaper rate than the power they buy from their traditional supplier. This arrangement sees the host business realise immediate savings from the solar system as they have no capital to recover.
Additionally, if you do own your site, and have plans to sell the building within the PPA term, you will need be satisfied that the next owner of the building will not develop the site or remove the solar array from the roof. If this is part of their plans you will need to factor in the cost of purchasing the system from the investor in the asking price for your site.
For more information please contact one of the team.
BeBa Energy UK Ltd do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.