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PPA

Power Purchase Agreements (PPAs) are essentially a contract between two parties, one who generates the energy and one who is looking to purchase the energy. The Asset+ team have extensive experience of developing and implementing renewable or low carbon energy schemes that are structured on the basis of a PPA.

A PPA creates long-term price certainty reducing risk and protects you against potential higher energy prices in the future. It also helps stimulate additional alternative energy supply in the UK. With mechanisms that allow either fixed or floating prices, the energy secured via an Asset+ PPA is an innovative way for businesses, councils and other organisations to secure an energy supply at a reduced cost.

For PPAs entered into with Asset+, our specialist team will design, finance and manage the installation of the alternative energy system on a customer’s property. The energy generated by the system is then sold back to the customer at a pre-agreed price that is lower than that available through a utility provider.

The PPA may typically run for between 3 to 25 years, with the renewable installation monitored and maintained by Asset+ throughout this period as part of the agreement. At the end of this time the customer may choose to purchase the asset, to extend the agreement or to have the asset removed.

Benefits of a PPA include:

  • Free supply and installation of a renewable or low carbon energy system, such as roof mounted solar PV or a Combined Heat and Power Plant
  • Fixed electricity price indexed to RPI
  • Free monitoring and maintenance of the system for the length of the agreement
  • Substantial energy cost savings
  • Reduced carbon emissions