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

Who you actually contract with

The dividing line is the counterparty. A corporate PPA (CPPA) is a bilateral deal struck directly with the generator — you cut the supplier out of the middle. A utility-route PPA keeps your electricity supplier as the counterparty, buying the power on your behalf and handling the plumbing around it. That choice sets the price, the risk you carry, and whether the deal is even open to you.

The tariff gap — and its entry fee

CPPAs are dramatically cheaper on paper: around £42–£60/MWh (4.2–6p/kWh) versus 11–20p on a utility route. But that price comes with a threshold. Corporate deals typically start at 10MWp+ and expect an investment-grade off-taker, whereas utility PPAs open at 50kWp and accept a far wider range of covenants. If you're not large and highly rated, the cheap tariff simply isn't on the menu — which is why covenant strength is worth understanding via the off-taker covenant guide.

Balancing, credit and REGOs

• Utility PPAs bundle balancing and credit support — the supplier absorbs the shape and imbalance risk.
• CPPAs can push balancing risk onto the off-taker, so treasury sophistication matters.
• REGO certificates transfer directly from the generator in a CPPA, or via the supplier on a utility deal.

Right route for your size

Investment-grade corporates with a treasury function that can manage balancing will extract the lowest cost from a CPPA. Most UK commercial off-takers — mid-market businesses without a credit rating — are better served by the supplier support of a utility PPA. Match the structure to your scale in the funding comparison, and shortlist specialist PPA providers who offer the route you need.

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. Capital allowances combine only with cash or self-finance — and note solar is a special-rate asset, so it does NOT qualify for full expensing; the correct 100% route is the Annual Investment Allowance (up to £1m/year). 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.