Traditionally, businesses buy their electricity from licensed electricity suppliers – but a corporate power purchase agreement (CPPA) offers an alternative.

Three men walking through solar farm

It’s a long-term contract under which an organisation agrees to buy some of its electricity directly from a grid-connected renewable energy generator, such as a solar or wind farm.

CPPAs help to fund renewable energy projects, as they give generators a long term revenue stream for the energy they produce.

Benefits of CPPAs:

Budget certainty: CPPAs typically cover a period of between five and 20 years and the price per unit can be fixed throughout the full contract

Price discount: Most CPPAs are priced at a discount to current market projections in order to secure funding

Meet carbon reduction targets: CPPAs offer a fast way for organisations to reduce their carbon emissions. Renewable Electricity Guarantee of Origin certificates (REGOS) enable organisations to report zero carbon emissions for that electricity

Corporate social responsibility: CPPAs are a straightforward way of directly supporting renewable energy projects

Transparency: CPPAs offer clear proof that an organisation’s power is from renewable sources

Portability: CPPAs do not stop you from changing energy suppliers, as you can take it with you if you move your supply contract

Contact Our Net Zero Partners