Power Purchase Agreement with SSW

Solar funding for schools, hospitals & the UK Public Sector

“Solar South West have transformed our school’s attitude to energy use and production. The installation of 240 PV modules was efficient and worked around the needs of a running school. They continue to offer excellent support and advice and we would recommend them to any school or educational institution.” – Paul Walton, Deputy Headmaster, Northern Parade Junior School.


Solar South West (SSW) are now offering an opportunity for UK Public Sector organisations, or those with dependable credit ratings, the opportunity to dramatically reduce energy bills whilst obtaining a fully maintained & operated solar PV system effectively free of charge.

Put simply:


  • SSW fund upfront, design and construct a suitably sized PV system – no deposit required.
  • The client repays SSW’s investment through the purchase of solar energy, which will remain available at a discount to current supplier rate.
  • Once repaid, the asset can be transferred to the client free of charge, or retained and operated by SSW at marginal cost covering Operation and Maintenance (O&M) only (there may be business rates advantages to this).

For less money, you get the same amount of electricity, and a fully maintained and operated PV system.


The price SSW charge for energy will remain below the cost you can obtain from a supplier for the duration of the PPA agreement. What this means is, immediate, lasting savings on your energy bills.

Currently you will also receive Feed in Tariff (FiT) income support for your generation of renewable energy.

In summary, for less money than you currently spend on energy alone, you will receive:

  • An equal amount of energy
  • A solar PV system
  • A significant reduction in operating costs in the short, medium and long-term
  • Free maintenance for the PV system over the agreement’s duration
  • Feed in Tariff income (£)
  • Fixed, low price for a proportion of your expenditure on energy

Pricing Example


The graph above is a genuine PPA example generated by our pricing model. It demonstrates an example of a flat-rate, 14 year PPA payment structure, for a 50kWp PV system over 20 years. Capital cost including access, (funded by SSW) £40,000– with the £/kWh (price per unit of electricity) at £0.12.

From it we can observe data regarding:

  • Annual total system output.
  • Annual cost of output at average supplier price.
  • Annual PPA repayments including electricity, maintenance, and install costs.
  • Annual balance remaining.
The difference between continuing to purchase power from your energy supplier and this PPA offer:

Focussing on the savings p.a. The red bars represent the annual price to purchase roughly 50,000kWh of electricity from a supplier. Electricity costs, which have already risen dramatically this year, are set to rise exponentially due to historic under investment in the UK grid and the Hinkley Point Nuclear project.

The green bars represent the PPA cost of the same amount of electricity, O&M for the PV, and your annual repayments – all in one.

The client has also chosen for SSW to retain ownership in exchange for the cost of annual O&M – this takes place after the system has been paid off in year 14.

Factor in the income received through the Feed in Tariff:

The next graph, below, represents the same figures as above, with red representing supplier costs for energy alone, and green representing PPA costs including energy, O&M, and the installation costs. Only now, FiT income support has been included within the annual PPA repayments.

Flat-rate repayment pricing model including FiT income
As you can see, when FiT income support is included, the savings made are even greater. In addition to this, after the agreement has ended in year 15, maintenance costs are covered (and exceeded) by income generated through the Feed in Tariff.

Savings?

Over the 20 year period the example PV system used will generate over 940,000kWh of solar electricity. The cumulative cost of purchasing this from a supplier, after power price inflation, is c.£145,000.

In contrast to this, the PPA cost for the same period is c.£85,000. Saving c.£60,000. On top of this, the client is set to receive a further c.£60,000 in Fit income.

Thus the total savings and income generated through this PPA model is c.£120,000.

The asset which has now been acquired through the client’s significantly reduced expenditure will continue to perform for many years, and aside the Operation and Maintenance cost, this energy will effectively be Free.

Flexibility of payment

The Power Purchase Agreement can be altered to suit your cost saving objectives.

The example above used a standard flat-rate PPA structure, where the £/kWh charged by SSW remains the same over the PPA’s duration. This £/kWh is negotiable and can be tailored to either decrease payback periods (through a higher £/kWh) or increase annual savings (through a lower £/kWh and longer repayment period).

SSW also offer tiered repayment structures, whereby the £/kWh we charge falls annually, over a longer term, meaning your savings increase annually over the PPA’s duration (demonstrated below).

Deposits are also accepted (but not required), and should the client wish to end the PPA, the balance can be repaid in full at any time with no penalty or interest charges.

This really is a no-loss business model, enabling immediate savings, a free PV system, reduced operating costs and not to mention 100% less emissions. For more information please get in touch and the SSW team will be happy to provide answers to any questions you may have.

For information about other funding options with SSW, visit our funding page for information about the Carbon Trust Green Business Fund.