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Power Purchase Agreement (PPA)
The Logical Group partners with industry leading lenders to help fund the installation of solar PV on behalf of the business and then sell the power back to the business at a fraction of the cost it is supplied from the grid.
These agreements allow businesses to reduce their carbon footprint, save on their energy bills, and be less exposed to energy market price fluctuations.
PPA terms are index linked allowing for long-term price security and peace of mind.
The combined mission of The Logical Group and its partners is to reduce carbon emissions and help the UK meet its Net Zero targets while making it easy for businesses to upgrade with renewable energy and save money. Our funding partners have over 16MW of PPA projects in their pipeline estimated to reduce CO2 emissions by 63,000 tonnes over the lifetime of the projects.
How to get involved
- To express an interest in having a system funded, please send a copy of your latest energy bill to The Logical Group.
- We will visit the property to conduct a survey and assess its viability for solar PV, and if required, battery.
- If the property is suitable, we will install the solar PV system together with export and generation meters so we are easily able to bill for the power used.
What if I lease my building?
A PPA is still possible depending on what sort of lease you have in place. If your tenancy allows you full control of the internal and external parts of the property, the PPA will be allowed inside the remaining lease term. If the business doesn’t control the exterior (internal lease only), we may be able to help, providing your landlord is on board.
How long do these agreements last?
A typical PPA term is between 10 and 25 years. The longer the term the cheaper the energy will be.
What if I want to sell my building during the PPA term?
The PPA and it’s provisions will pass to the next owner of the building.
What happens if something goes wrong with part of the equipment?
The Logical Group will be monitoring the performance of the system throughout its life and will be able to see any issues remotely. We will then repair the system at our cost.
Can I end the agreement early?
Yes. If the business wishes to end the agreement early they would simply repay the value back to the lending partner and would then become the owner.
What happens at the end of the term?
At the end of the term, be it 10 or 25 years, the equipment would be handed over to the business.
Do I still buy power from my supplier?
Yes. The PPA typically provides between 20-40% of your overall power requirement with the remaining power coming from your existing supplier, although you will now be using less power from the grid.
How do I know the system will be right for me?
We design the system in line with the usage of the property and available space to ensure you are benefitting from the best possible system.
Can I do other upgrades at the same time?
In some cases yes, we may be able to cover the costs of other items such as EV chargers, or lighting upgrades.