Comparison

Corporate PPA vs Utility PPA

Bilateral corporate PPA (CPPA) vs traditional utility-route PPA. Why corporates increasingly bypass the supplier — and when not to.

Side-by-side comparison

	Corporate PPA (CPPA)	Utility-route PPA
Counterparty	Direct generator (CPPA)	Electricity supplier
Tariff (year 1)	£42-£60/MWh (4.2-6 p/kWh)	11-20 p/kWh
System size minimum	10MWp+ typical	50kWp+
Off-taker covenant requirement	Investment-grade typically	Wider range accepted
Balancing risk	Sometimes off-taker carried	Supplier carries
REGO transfer	Direct from generator	Via supplier
Best for	FTSE-listed corporates, treasury sophistication	Most UK commercial off-takers

When Corporate PPA (CPPA) wins

Corporate PPA (CPPA) typically wins when (a) you need zero upfront capital, (b) you want operations and performance risk transferred, (c) your business horizon doesn't extend to a 25-year capital commitment, or (d) you want speed to deploy.

When Utility-route PPA wins

Utility-route PPA typically wins when (a) you have capital and want the lowest 25-year cost, (b) you want to retain ownership of the asset and its long-term value, (c) you can manage operations in-house, or (d) you're constrained by structural reasons (e.g., procurement rules for public bodies).

FAQs

Comparison FAQs

Which option should I pick?

CPPA gives you the cheapest tariff for investment-grade off-takers; utility PPA suits anyone who needs the supplier's balancing and credit support. Run your specific numbers in our PPA calculator before deciding.

Can the two be combined?

Sometimes. SEG income always layers on top of either route. AIA / Full Expensing combine only with cash or self-finance. PPA + grant rarely stack — most grants exclude PPA structures.

Where can I read more about the underlying mechanics?

Our mechanics hub covers 10 deep-dives on PPA structure, pricing, escalators, term, end-of-contract, off-taker covenant, EPC, O&M and M&V.