Guide

14 Aug 2025

How a Power Purchase Agreement (PPA) can unlock energy savings

How a Power Purchase Agreement (PPA) can unlock energy savings

For many organisations exploring decarbonisation and energy efficiency, the biggest barrier to adopting new technology is often the upfront cost. That’s where a Power Purchase Agreement (PPA) can help.

It removes the need for capital investment, providing a fully financed route to clean, reliable, and cost-effective energy. With a PPA, you could access solutions such as Combined Heat and Power (CHP), solar panels, battery storage, EV chargers, or even wind turbines – all without paying up front for the equipment.

What is a PPA?

A PPA is a long-term agreement in which a third-party developer designs, installs, owns, and operates a renewable or low-carbon energy system on your site. You simply buy the electricity it generates at a fixed rate, usually cheaper than the grid, over 10 to 25 years. Think of it as an all-inclusive package for your energy supply.

If you’re currently paying more than 15p per kWh for grid electricity, a PPA could deliver immediate and significant savings.

Our PPA solution removes the financial and operational barriers to installing low-carbon technologies. We take care of everything – from design to maintenance – so you can start saving money and cutting carbon from day one, without touching your capital."

Simon Watts

Partner Manager

Why consider a PPA?

Capex & Opex free: Access fully funded solutions without tying up cash reserves.

Lower energy costs: Secure cheaper, greener electricity compared to the grid.

Immediate cost and carbon savings: Reduce bills and emissions from day one.

Budget certainty: Lock in a fixed p/kWh rate (index-linked) for up to 25 years.

Resilience against price volatility: Reduce exposure to unpredictable grid prices.

Support net zero goals: Demonstrate sustainability leadership and improve ESG credentials.

Overcoming barriers to investment

A PPA covers everything, from initial feasibility studies and system design through to installation, operation, and maintenance. That means no technical headaches and no financial risks, just the benefits of cheaper, greener energy.

Is a PPA right for your site?

For a PPA to deliver maximum benefit, your project should meet certain suitability criteria:

  • System scale – The installation should be large enough to generate meaningful energy and cost savings, typically with a minimum capacity threshold that ensures a strong return on investment for all parties.
  • Available space and infrastructure – Sufficient physical space, structural capacity, and supporting infrastructure are essential to accommodate the chosen technology. That’s roof space for solar, ground area for wind turbines and ground mounted solar, or plant room capacity for CHP
  • Energy demand profile – A steady and suitable consumption pattern to maximise on-site use of generated electricity, reducing reliance on grid imports.

When these boxes are ticked, a PPA can deliver stable, predictable energy costs and real progress towards net zero, without any capital outlay.

Ready to embrace clean energy?

Zenergi has partnered with Centrica Business Solutions to offer Combined Heat and Power (CHP), solar PV, battery storage, Electric Vehicle (EV) chargers, wind turbines and more, all delivered through flexible financing options. Through our partnership you can control energy costs, reduce carbon emissions, and future-proof your operations – without a single penny of upfront capital.

A Power Purchase Agreement (PPA) removes the need for capital investment, providing a fully financed route to clean, reliable, and cost-effective energy.

Through our partnership you can control energy costs, reduce carbon emissions, and future-proof your operations without a single penny of upfront capital.

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