An On-site PPA involves the installation of renewable energy equipment—typically solar panels—directly on a business’s premises. A third-party developer owns, operates, and maintains the equipment, while the business purchases the generated electricity at a fixed rate over a long-term contract.
This model eliminates upfront capital expenditure for the business and reduces reliance on grid electricity. On-site PPAs provide long-term cost stability, lower emissions, and visible proof of sustainability efforts. Any excess electricity can often be exported back to the grid, generating credits or income.
Ideal candidates include businesses with large rooftops or open land, such as warehouses, factories, logistics hubs, and supermarkets. Organisations seeking to demonstrate visible climate action at their facilities also benefit, particularly when engaging customers, investors, or regulatory bodies.
On-site PPAs are a strong choice for companies seeking resilience and energy independence. By producing energy on-site, businesses reduce exposure to grid outages or price spikes, while supporting the local transition to renewables.
This type of PPA is especially valuable where real estate ownership allows infrastructure investment, and where local regulations support self-generation. It’s also beneficial in regions with high electricity prices or supportive government incentives.