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Power Purchase Agreement UK

How Much Capital Is Tied Up in Your Existing Energy System?

If your business owns Solar PV, CHP or wind equipment, a Power Purchase Agreement could allow you to release capital tied up in that system while continuing to benefit from the electricity it generates.

Planning a new installation instead? A PPA can also fund a new energy system without requiring a large upfront capital investment.

See What Your System Could Release Explore PPA Funding

Existing asset capital release
You already own the system Solar PV, CHP or wind generation
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The fund purchases the asset The structure is based on the system and its generation
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Capital is released Giving your business greater financial flexibility
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You keep using the energy Electricity is supplied through the agreed PPA
Typical PPA terms can range from 10 to 25 years

TRUSTED FUNDERS & PARTNERS

We work with Trusted funder Siemems
Our Partner in the UK & Canada - Armada Credit Group provide business finance & Leasing services
Premium Credit are a trusted funder of ELS
Room 12 are a trusted funding partner of ELS
PEAC are a trusted funder of ELS
We work with Fleximise for flexible business finance & leasing
YouLend provide corporate finance for ELS Clients
We work with MaxCorp a trusted finance partner
ELS are a proud member of East Midlands Chamber
ELS are a founding memeber of The Guild of Business Finance Professionals
Two Ways a PPA Can Help

Use Your Energy Budget Without Tying Up More Capital

Whether the equipment is already installed or still at the planning stage, a Power Purchase Agreement gives you another way to structure the project.

Existing system

Already Own Solar PV, CHP or Wind?

Release capital tied up in the system.

ELS can arrange a structure where the fund purchases your existing energy system, releasing capital back into the business.

You continue to benefit from the electricity it generates through the agreed PPA. Operations and maintenance, routine servicing and insurance can also form part of the agreement.

If the system needs a refit, upgrade or additional equipment, this can potentially be included too.

You release capital. The system keeps generating energy.

See What Your System Could Release
New installation

Planning a New Energy System?

Install it without a large upfront investment.

If you are considering new Solar PV, CHP or wind generation, you may not need to fund the installation from your own capital.

The fund pays for the agreed system. Your business then purchases the electricity generated at an agreed price per kWh over the PPA term.

It gives you another way to invest in energy infrastructure while keeping capital available for other business priorities.

Invest in the energy system without tying up the cash needed elsewhere.

Explore PPA Funding
Energy Asset Capital Release

How Much Could Your Existing System Release?

There is no standard percentage because every project is different.

ELS works with the funder to assess the future generation and commercial performance of your existing system.

The fund then works back from those figures to calculate how much capital could potentially be released.

It is not simply about what the equipment originally cost. It is about what that system can continue to generate.
See What Your System Could Release
What the fund looks at
Electricity generation How much energy the existing system produces.
Site consumption How much electricity your site uses each year.
Technology and size The type and capacity of the generation system.
PPA term The proposed length and structure of the agreement.
Future generation The expected electricity generated over the agreement.
Commercial viability The funder models the complete project before you commit.
Simple Process

How Does a Power Purchase Agreement Work?

There can be plenty happening behind the scenes. From your point of view, we keep the process straightforward.

1

We Look at Your System

We review the technology, system size, electricity generation and your site's energy consumption.

2

The Fund Models the PPA

The proposed structure is calculated around the system and the energy it is expected to generate.

3

Capital Is Released

The fund purchases an existing asset, or provides the capital needed for an agreed new installation.

4

You Keep Using the Energy

Your business purchases the electricity generated by the system at the agreed PPA rate.

You can review the proposed numbers before deciding whether to proceed.

Real PPA Examples

What Can a PPA Look Like in Practice?

Every project is different, but real-world examples help show what the numbers can look like when the right PPA structure is put in place.

Existing CHP System

Releasing Value From an Existing Energy Asset

£219k Modelled first-year net saving
354 kWe CHP system size
2.2m kWh Annual CHP electricity generation
91% Electrical self-consumption
10 years Proposed PPA term
23p/kWh Existing grid rate
12.99p/kWh Proposed PPA rate
See What Your System Could Release
New Solar PV Project

Funding a New Solar Project Without Capital

£34,178 Modelled first-year saving
652.5 kWp Example system size
75% Modelled self-consumption
587,315 kWh Year-one solar generation
25 years Proposed PPA term
11.9p/kWh Example PPA rate
£1.66m+ Modelled 25-year cumulative saving
Explore PPA Funding

These anonymised examples are based on real PPA proposals and are shown for illustration only. Savings are modelled using project-specific assumptions and are subject to technical review, final commercial terms and actual energy performance.

What Can Be Funded?

Existing Systems, New Systems and Upgrades

ELS can explore PPA funding across several forms of onsite energy generation.

Solar PV

Existing Solar PV assets and suitable new commercial installations.

CHP

Existing or new Combined Heat and Power systems.

Wind

Suitable existing assets and new wind generation projects.

Refits System upgrades Additional equipment Operations & maintenance Routine servicing Insurance
Could Your Site Be Suitable?

A Quick Guide to the Types of Projects We Can Explore

Every project is assessed on its own numbers, but these are useful starting points when deciding whether a PPA may be worth exploring.

50+ kW Typical minimum system capacity
200,000+ kWh Approximate annual electricity use
No Fixed Age Limit Existing systems are assessed on the numbers
No Set Sector Limit Suitable projects can come from many sectors

What matters is whether the generation, consumption and commercial numbers work.

An older system should not automatically be ruled out. If work is needed to improve, upgrade or expand it, that can potentially be considered within the new arrangement.

See What Your System Could Release
Why ELS?

We’re Not Just Finance People. We Understand the Project Behind the Finance.

Energy funding can become complicated very quickly. We’re here to make it easier.

ELS works between the customer, supplier and funding partner to help structure the right solution around the actual project.

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Understand the numbers first We help establish what options are available before you make a decision.
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Finance explained simply We keep the structure understandable without burying you in unnecessary finance jargon.
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Built around the project Existing assets, new installations, upgrades and refits can all need a different approach.
Frequently Asked Questions

Power Purchase Agreement FAQs

The important questions, answered without making things more complicated than they need to be.

What is a Power Purchase Agreement?

A Power Purchase Agreement, or PPA, is a long-term agreement where a business purchases electricity generated by an energy system at an agreed price per kWh. With an onsite funded PPA, the fund owns the equipment while the customer continues to benefit from the electricity it generates.

Can I release capital from Solar PV, CHP or wind equipment I already own?

Potentially, yes. ELS can arrange a PPA structure that allows the fund to purchase an existing Solar PV, CHP or wind system, releasing capital to the current owner while the business continues to use the electricity it generates. The amount that can be released depends on the individual system and its future generation.

How long does a PPA normally last?

Typical PPA terms range from around 10 to 25 years. The right term depends on the technology, energy generation, consumption and the overall project.

How quickly could capital be released?

A suitable project can potentially move from initial assessment to capital release in around one week to one month. The actual timescale depends on factors such as legal work, the information required and how quickly the parties involved can complete the process.

Can upgrades or refits be included?

Yes. Where appropriate, refurbishment, upgrades or additional equipment can potentially be incorporated into the new funding structure.

How is the PPA rate calculated?

The PPA is based on an agreed price per kWh of electricity rather than a traditional loan interest rate. The rate depends on the individual project, including generation and consumption. ELS can provide a proposal so you can see the numbers before deciding whether the structure makes commercial sense.

What happens at the end of the PPA?

Depending on the agreed structure, you may have several options. These can include taking ownership of the system for £1, entering into a new PPA, exploring further capital release or considering an upgrade or replacement. The available options are discussed as part of the agreement.

For Energy Suppliers

Already Work With CHP, Solar PV or Energy Customers?

PPA funding can give you another reason to speak to your existing customer base.

Help customers explore capital release, fund a refit or upgrade, or move ahead with a new project without a large upfront investment. ELS can work alongside you and your customer throughout the funding process.

Talk to ELS About Supplier Partnerships
Start With the Numbers

How Much Could Your Energy System Release?

If your business already owns Solar PV, CHP or wind equipment, give us a few details and we can explore whether a Power Purchase Agreement could make commercial sense.

Your existing system Electricity generation Site consumption Planned upgrades
See What Your System Could Release Explore a New PPA Project

No complicated first step. Let’s look at the numbers.

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