A solar PPA delivers rooftop generation with zero capex — but owner-occupiers almost always achieve 2x the financial benefit of PPA over 10 years. Here's how to choose correctly.
How a warehouse solar PPA works
PPA provider installs system at no cost. You pay per kWh at 7-14p (below 20-26p grid retail). Provider claims AIA and tax allowances. After 10-25 year term: renew, buy at residual value, or provider removes.
2026 pricing
10-year contracts: 9-12p/kWh. 15-year: 7-10p/kWh. 20-25 year: 6-9p/kWh. Annual escalator: 2-4%. Day-1 saving vs grid: 30-50%.
When PPA is right
Short leases (under 7-10 years remaining): zero capex, off-balance-sheet, no residual risk. Owner-occupiers: almost always choose ownership — you keep AIA (£250k tax shield on £1m install) and full £/kWh saving.
Key contract clauses
Minimum purchase obligation (pay even if building empty?). Change of occupancy provisions. System performance guarantee. Grid curtailment risk allocation. Buyout pricing formula. Step-in maintenance rights.
Ownership vs PPA: 10-year financial comparison
500 kW system, 22p/kWh grid retail, PPA at 9p/kWh, ownership £375k capex. Ownership total 10-year saving: £960k vs £520k PPA. Own the asset — if you can.
See more
PPA guide: /guides/warehouse-solar-ppa-guide/. Finance options: /guides/warehouse-solar-finance-options/. Contact: /contact/.