A Power Purchase Agreement is a way to get solar on your roof without writing a cheque — and without owning the system. Someone else owns it, you buy the electricity it makes, at a rate fixed for 15–25 years.
What a PPA actually is
You lease out your roof space to a developer. They install and own the array. You agree to buy the output at a pre-agreed unit price — typically 30–50% below grid. At the end of the term the system transfers to you, or it's removed, or the PPA rolls over.
Where PPAs beat capex
- Capex-tight estates where a 6-figure solar bid won't get approved.
- Tenanted buildings where the payback term outlasts the current lease.
- Corporate reporting: immediate Scope 2 reduction with zero balance-sheet impact.